In this article, we discuss 5 Cathie Wood stocks that can rebound in 2023. If you want to see more stocks in this selection, click 10 Cathie Wood Stocks That Can Rebound in 2023.
5. Robinhood Markets, Inc. (NASDAQ:HOOD)
YTD Share Price Decline as of June 28: 51.93%
Number of Hedge Fund Holders: 19
Robinhood Markets, Inc. (NASDAQ:HOOD) is an American financial services company that operates as a stockbroker and offers an electronic trading platform to users. The company allows trading of stocks, exchange traded funds, and cryptocurrencies. Cathie Wood of ARK Investment Management raised her Robinhood Markets, Inc. (NASDAQ:HOOD) stake by 28% in Q1 2022, holding 30.35 million shares worth $410 million.
On June 28, Robinhood (HOOD) shares were up 14% driven by a Bloomberg report that FTX is interested in acquiring the company, although FTX indicated no plans to purchase Robinhood Markets, Inc. (NASDAQ:HOOD), Mizuho analyst Dan Dolev informed investors in a research thesis. The analyst believes a possible deal would be positive news for Robinhood Markets, Inc. (NASDAQ:HOOD) “as it helps expand its reach and breadth”. He also thinks that the company “can survive, and thrive on its own”. Dan maintained a Buy rating on the shares with a $14 price target.
According to Insider Monkey’s first quarter database, 19 hedge funds were long Robinhood Markets, Inc. (NASDAQ:HOOD), compared to 24 funds in the preceding quarter. Joshua Kushner’s Thrive Capital is one of the leading shareholders of the company, with 20.4 million shares worth $275.75 million.
Here is what Claret Asset Management has to say about Robinhood Markets, Inc. (NASDAQ:HOOD) in its Q4 2021 investor letter:
“Robinhood went public at $38 a share at the end of July of this year. After a one day decline of 8%, it proceeded to rise to a peak of $85 in a matter of 4 days before settling down around $40 in September. Then, we found out that the company does not appear to understand the margin rules that apply to their client’s trades… and got fined by the Securities Exchange Commission. As of today, it is trading below $20, at 57 times earnings, approximately half of its IPO price. Caveat emptor… Buyer beware.”
4. monday.com Ltd. (NASDAQ:MNDY)
YTD Share Price Decline as of June 28: 63.42%
Number of Hedge Fund Holders: 24
monday.com Ltd. (NASDAQ:MNDY) is an Israel-based company providing a cloud platform for work management, in addition to offering process management, project management, productivity software, team management, customer relationship management, and collaborative software. The stock declined over 63% year to date as of June 28.
Securities filings for Q1 2022 reveal that Cathie Wood’s ARK Investment Management held 207,991 shares of monday.com Ltd. (NASDAQ:MNDY), worth $32.8 million, representing 0.13% of the total 13F portfolio. The hedge fund strengthened its hold on monday.com Ltd. (NASDAQ:MNDY) by 171% in Q1.
On June 1, Tigress Financial analyst Ivan Feinseth reiterated a Buy recommendation on monday.com Ltd. (NASDAQ:MNDY) but lowered the price target on the stock to $240 from $432 to account for the re-rating of valuation, calling the recent pullback “a major buying opportunity”. monday.com Ltd. (NASDAQ:MNDY) reported “strong” Q1 results, and continues to see escalating demand for its “highly scalable and cost-effective” business management platform, Work OS, the analyst added.
According to Insider Monkey’s Q1 database, 24 hedge funds were long monday.com Ltd. (NASDAQ:MNDY), with collective stakes worth $681.3 million. Chase Coleman’s Tiger Global Management is the leading position holder in the company, with more than 2 million shares worth over $328 million.
3. Twilio Inc. (NYSE:TWLO)
YTD Share Price Decline as of June 28: 65.07%
Number of Hedge Fund Holders: 75
Twilio Inc. (NYSE:TWLO) is a California-based communications company that offers voice, SMS, MMS, SIP trunking, and call center products and services. The stock has declined over 65% year to date as of June 28. Cathie Wood’s ARK Investment Management held more than 5 million shares of Twilio Inc. (NYSE:TWLO) in Q1 2022, worth $827.5 million, representing 3.45% of the total portfolio. The hedge fund elevated its position in the company by 24% in Q1.
On June 9, Scotiabank analyst Nick Altmann initiated coverage of Twilio Inc. (NYSE:TWLO) with an Outperform rating and a $215 price target. The analyst contended that while Twilio Inc. (NYSE:TWLO) “may not be as clean as it has been in the past”, it remains one of the quickest organically expanding companies of its size. The analyst noted that Twilio Inc. (NYSE:TWLO) continues being the market leader in Communications Platform as a Service, which he called “the fastest-growing end-market in software”.
Among the hedge funds tracked by Insider Monkey, 75 funds were bullish on Twilio Inc. (NYSE:TWLO) at the end of March 2022, compared to 80 funds in the last quarter. David Goel and Paul Ferri’s Matrix Capital Management is a significant shareholder of the company, with 2.6 million shares worth $431.3 million.
Here is what Aristotle Capital Management Focus Growth Fund has to say about Twilio Inc. (NYSE:TWLO) in its Q1 2022 investor letter:
“Twilio detracted from performance in the first quarter, as the increase in interest rates continued to affect valuations of high growth, high valuation technology stocks. The multiple compression seen across the sector did not spare Twilio, even with strong fourth quarter results that beat expectations and a first quarter 2022 guidance for top line growth to be above consensus. We continue to believe that Twilio is a secular winner in the CCaaS space and view the long-term growth and profitability targets as achievable.”
2. Spotify Technology S.A. (NYSE:SPOT)
YTD Share Price Decline as of June 28: 59.45%
Number of Hedge Fund Holders: 49
Spotify Technology S.A. (NYSE:SPOT) is a provider of audio streaming services worldwide, operating through Premium and Ad-Supported segments. Cathie Wood owns 4.3 million Spotify Technology S.A. (NYSE:SPOT) shares as of Q1 2022, worth $662.7 million, representing 2.76% of her total 13F holdings. She increased her hold in the company by 10% in Q1. The Spotify Technology S.A. (NYSE:SPOT) stock has fallen about 60% YTD as of June 28.
On June 15, Wells Fargo analyst Steven Cahall upgraded Spotify Technology S.A. (NYSE:SPOT) to Equal Weight from Underweight and raised the price target to $124 from $101. The analyst observed that Spotify Technology S.A. (NYSE:SPOT)’s latest investor day pointed towards more profitable operations than his previous models. Driven by the strength in user and revenue growth, the analyst is willing to concede some margin expansion opportunity and allow management time to execute. The analyst’s Spotify Technology S.A. (NYSE:SPOT) estimates are moving up, in addition to his customer lifetime value projections.
Among the hedge funds tracked by Insider Monkey, Spotify Technology S.A. (NYSE:SPOT) was part of 49 public hedge fund portfolios, compared to 53 in the last quarter. Gabriel Plotkin’s Melvin Capital Management holds a significant stake in the company, comprising 1.5 million shares worth $233.2 million.
Here is what Baron Focused Growth Fund has to say about Spotify Technology S.A. (NYSE:SPOT) in its Q1 2022 investor letter:
“We also added to our positions in Spotify Technology S.A. The company has large addressable markets with strong brands that should allow them to take significant market share over time. We believe SPOT is appropriately financed and should generate significant cash to continue investing in their businesses for further growth.”
1. Shopify Inc. (NYSE:SHOP)
YTD Share Price Decline as of June 28: 74.30%
Number of Hedge Fund Holders: 72
Shopify Inc. (NYSE:SHOP) is a Canadian multinational e-commerce company. Cathie Wood’s ARK Investment Management owns 903,063 shares of Shopify Inc. (NYSE:SHOP) as of Q1 2022, worth $610.4 million, representing 2.54% of the total portfolio. The hedge fund boosted its stake in the company by 27% in the March quarter. Shopify Inc. (NYSE:SHOP) stock has dropped over 74% YTD as of June 28.
On June 24, Morgan Stanley analyst Keith Weiss resumed coverage of Shopify Inc. (NYSE:SHOP) with an Equal Weight rating and a $450 price target. The analyst noted that Shopify Inc. (NYSE:SHOP)’s “strong positioning against large longer-term opportunities” like Fulfillment is potentially undervalued right now, but macro risks, a normalization of e-commerce spending, and limited transparency from the company “present near-term risks”, the analyst added.
Among the hedge funds tracked by Insider Monkey, 72 funds were long Shopify Inc. (NYSE:SHOP) at the conclusion of Q1 2022, compared to 86 funds in the preceding quarter. Stephen Mandel’s Lone Pine Capital is one of the leading stakeholders of the company, with more than 1 million shares worth $699 million.
Here is what Polen International Growth Fund has to say about Shopify Inc. (NYSE:SHOP) in its Q1 2022 investor letter:
“We added to the Portfolio’s position in e-commerce company Shopify in the first quarter after a sharp share-price decline. This brought the Portfolio’s weighting in the company to 2%. We believe Shopify provides a uniquely positioned platform, and we like the company’s strategy of continuing to invest in its business in an effort to strengthen its competitive advantages. The market’s affinity for businesses like Shopify may have changed, which created an opportunity for us to build our position in the company at what we believed to be compelling valuations.”
You can also take a look at 10 Best Stocks To Buy In 2022 According To Billionaire Mario Gabelli and 6 Defensive Stocks to Buy in 2022 According to Seth Klarman.
