Cathie Wood, the CEO of Ark Invest, is one of the most prominent investors in the innovation space. While her performance has varied widely over the years, I expect it to only improve when interest rates begin to pull back in the new year. That being said, let’s take a look at some of the top Cathie Wood stocks investors may want to consider.
Palantir (PLTR)
Palantir (NYSE:PLTR) constitutes about 1.19% of Ark Invest’s total holdings at the moment. That was after her funds picked up another 1.57 million shares, bringing the total PLTR holdings to 9.89 million.
Palantir has been having a great year. Earlier in the year, for example, the company posted its first quarter of profitability. That was a significant catalyst for the company and continues to propel it higher. Helping further, Palantir has invested heavily in artificial intelligence which, of course, has been the topic of the year. In other words, Palantir is well positioned at this time.
Tesla (TSLA)
Tesla (NASDAQ:TSLA) has been a big winner for ARK Invest and is among the top Cathie Wood stocks to consider. Over its lifetime, ARK Invest has spent $352 million buying Tesla’s shares and sold them for $990 million. That equates to a return of 181%.
Her firm has reduced its position by more than a million shares over the last two quarters. Especially with the EV sector facing substantial difficulties.
However, Tesla is focused on reducing prices to grab a larger market share. That said, there’s a logical argument to be made in favor of investing in Tesla at this time. The markets expect rate cuts beginning sometime in early 2024 which will reduce lending costs. In turn, that could spur rising demand for EVs overall.
Nvidia (NVDA)
Wood, like many other investors, has found a winner in Nvidia (NASDAQ:NVDA). The average buying price at which her firm has acquired its shares is just above $81. Those shares currently trade for $475 a piece having multiplied in value several times over the past two years, making it another one of the top Cathie Wood stocks to consider.
ARK Invest has also sold Nvidia to make a profit. That doesn’t necessarily mean that other investors should follow suit. After all, there’s little reason to assume that Nvidia’s shares should pull back in 2024, especially with its newest chip being released. That should propel it higher and further cement its position as the leader in the artificial intelligence space.
UiPath (PATH)
UiPath (NASDAQ:PATH) is an enterprise automation firm. Automation is one of the primary focus areas of innovation in general as firms of all sizes continue to push to reduce costs. The company sells a software platform that helps Enterprises automate their business processes.
It’s very clear to see why Wood and her firm have invested in UiPath. The firms that win in the race for automation, be it through software or hardware, are going to see strong demand. Firms of all sizes will pay a great deal of money in order not to pay the high costs of human labor.
UiPath Is the second largest holding within ARK Invest overall. It constitutes more than 7% of the firm’s entire holdings and the company owns more than 10% of UiPath’s total equity. That said, it hasn’t been a successful investment for ARK Invest to date.
The company has purchased those shares at a price very near $45 and they currently trade for roughly $23. To date, the investment has resulted in a 48% loss on a total investment valued at $2.13 billion.
Archer Aviation (ACHR)
Archer Aviation (NYSE:ACHR) is one of the top “flying car” stocks to consider. Granted, it’s not making ‘flying cars’ per se. Instead, it is developing electric vertical takeoff and landing vehicles (eVTOLs) that look somewhat like a helicopter and are colloquially known as flying cars.
Wood and her company are substantial investors in Archer Aviation’s outstanding shares. Currently, ARK Invest owns 9.28% of Archer Aviation’s outstanding stock. To date, the investment has resulted in a 5.3% loss overall. ARK Invest substantially increased its position during the third quarter snatching up 14.6 million shares overall.
Investors looking to mimic the firm’s strategy should probably just establish a position at this time. The future of the company and the stock is very difficult to accurately assess. The company has forged relationships both on the private and public side. It secured investment from the US Military and major transportation firms including Stellantis (NYSE:STLA). What those Investments yield remains to be seen but those seeking innovation and its strong potential returns could do a lot worse than Archer Aviation.
Cameco (CCJ)
Cathie Wood’s recently bought $337,000 worth of Cameco (NYSE:CCJ) for about $35.37. Presently, those shares are worth $45.65. As many of you are aware, uranium is used in the production of nuclear power and is part of a broader innovation strategy aiming to reduce carbon emissions. It’s a powerful green energy idea. In addition, I fully expect uranium to get more attention as the world goes green.
Iridium Communications (IRDM)
Iridium Communications (NASDAQ:IRDM) Is a telecommunications firm and stock that ARK Invest has been buying and selling since 2019. Most recently, the firm has upped its position over the second and third quarters of 2023.
Iridium Communications currently has more than 2.2 million customers and reported $197.6 million in revenue in the most recent quarter. However, the company did post a net loss of $1.64 million during the period. The company was profitable throughout 2022 which was marked by lower rates overall. Thus, it’s reasonable to anticipate that the company could again return to profitability in 2024 as rate cuts are enacted.
On the date of publication, Alex Sirois did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
