Cathie Wood Goes Bargain Hunting: 3 Stocks She Just Bought
Written by Rick Munarriz for The Motley Fool -> Cathie Wood has struggled to beat the market after a blowout 2020 put her Ark Invest family of exchange-traded funds on the map. As the co-founder, CE…
Cathie Wood has struggled to beat the market after a blowout 2020 put her Ark Invest family of exchange-traded funds on the map. As the co-founder, CEO, and investment manager, she keeps making moves to try to regain Ark's winning ways.
She continues to add to her existing positions. Wood bought shares in Shopify (NYSE: SHOP) , Blade Air Mobility (NASDAQ: BLDE) , and Tempus AI (NASDAQ: TEM) on Monday. Let's take a closer look at her latest purchases.
It's not just Cathie Wood who's having an off year. Shopify shares are trading 18% lower, a rough slide in an otherwise buoyant 2024. It doesn't help that the popular e-commerce platform also happens to be one of Ark Invest's 10 largest holdings across its combined portfolio.
Shopify took a 19% hit on May 10, the day after posting disappointing first-quarter results . Put another way, Shopify shares have risen 1% this year if you back out one unfortunate trading day.
But is this year's sell-off just a case of one bad trading day? Well, there's a lot going on at Shopify right now.
Revenue climbed 23% in the first quarter, up 29% if you adjust for the logistics business that it walked away from last year. Shopify's top- and bottom-line results exceeded expectations, but guidance was another story. Shopify's outlook for the second quarter calls for a slowing of year-over-year revenue growth to the high teens. That's a far cry for a company that rattled off at least nine years of top-line annual revenue growth of 47% or better until 2022.
Business is slowing, but did the correction go too far on the way down? Shares started to bounce back last month. CEO Tobi Lütke announced on social media on June 11 that Shopify has surpassed $1 trillion in cumulative gross merchandise volume. The timing of the post had one analyst suggest that Shopify will exceed its initially disappointing top-line guidance.
A order on @SaltandSundry just tipped Shopify over the 1 trillion(!) in cumulative GMV. Monumental milestone for us. A beautiful small business run by Amanda McClemens in DC. Couldn't have been a better example of what makes Shopify special: https://t.co/Yz8o3p5nGO
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