In this article, we discuss the 5 stocks that Cathie Wood is buying on the dip. If you want to read about some more stocks in the Wood portfolio, go directly to Cathie Wood is Buying These 10 Stocks on the Dip.
5. Roblox Corporation (NYSE:RBLX)
Number of Hedge Fund Holders: 38
Percentage Increase in Stake During Q2 2022: 22%
Loss in Share Price Year-to-Date as of September 21: 63%
Roblox Corporation (NYSE:RBLX) develops and operates an online entertainment platform. Regulatory filings reveal that ARK owned over 7.4 million shares of Roblox Corporation (NYSE:RBLX) at the end of June 2022 worth $221 million, representing 1.31% of the total portfolio.
On September 16, Needham analyst Bernie McTernan maintained a Buy rating on Roblox Corporation (NYSE:RBLX) stock and lowered the price target to $53 from $55, noting that advertising presented a substantial revenue opportunity for the firm.
Among the hedge funds being tracked by Insider Monkey, New York-based investment firm Renaissance Technologies is a leading shareholder in Roblox Corporation (NYSE:RBLX), with 11.6 million shares worth more than $380 million.
In its Q4 2021 investor letter, Tao Value, an asset management firm, highlighted a few stocks and Roblox Corporation (NYSE:RBLX) was one of them. Here is what the fund said:
“Roblox Corporation (NYSE:RBLX) got significant more attention from both institutional & retail investors after Facebook announced to rename itself as Meta Platforms. I believe the price appreciation is largely attributed to the increased attention. On business side, Roblox rolled out a few successful music events and also partnered with Netflix on testing long-form media consumption in virtual world. Apple in its iOS 14.5 rolled out an impactful change for digital advertising landscape by requiring all apps to ask users to “opt in”.
4. Coinbase Global, Inc. (NASDAQ:COIN)
Number of Hedge Fund Holders: 29
Percentage Increase in Stake During Q2 2022: 29%
Loss in Share Price Year-to-Date as of September 21: 72%
Coinbase Global, Inc. (NASDAQ:COIN) provides financial infrastructure and technology for the crypto economy. Latest 13F data shows that ARK Investment Management owned 8.9 million shares of Coinbase Global, Inc. (NASDAQ:COIN) at the end of the second quarter of 2022 worth $699 million, representing 4.13% of the portfolio.
On September 14, investment advisory JPMorgan maintained a Neutral rating on Coinbase Global, Inc. (NASDAQ:COIN) stock and raised the price target to $78 from $64. Analyst Kenneth Worthington issued the ratings update.
At the end of the second quarter of 2022, 29 hedge funds in the database of Insider Monkey held stakes worth $1.2 billion in Coinbase Global, Inc. (NASDAQ:COIN), compared to 46 in the preceding quarter worth $2.3 billion.
In its Q2 2022 investor letter, Miller Value Partners, an asset management firm, highlighted a few stocks and Coinbase Global, Inc. (NASDAQ:COIN) was one of them. Here is what the fund said:
“Coinbase Global, Inc. (NASDAQ:COIN) fell during the quarter as the crypto markets continued to suffer. While the company reported disappointing results, it committed to capping EBITDA losses at $500M even in the event of “a prolonged market downturn”. COIN’s ample liquidity ($6b in cash on hand) should enable them to survive a prolonged “crypto winter” and invest to strengthen the business in the downturn. While the crypto market is early in its adoption, Coinbase is focused on building the platform for crypto not only supporting trading, and cold storage, but moving into NFTs, staking, and crypto derivatives. We see tremendous upside potential for COIN over the next decade if they are able to successfully execute on their platform strategy.”
3. Cloudfare, Inc. (NYSE:NET)
Number of Hedge Fund Holders: 41
Percentage Increase in Stake During Q2 2022: 33%
Loss in Share Price Year-to-Date as of September 21: 51%
Cloudfare, Inc. (NYSE:NET) operates as a cloud services provider that delivers a range of services to businesses worldwide. According to regulatory filings, ARK Investment Management owned 324,635 shares in Cloudflare, Inc. (NYSE:NET) at the end of June 2022 worth $18 million, representing 0.10% of the portfolio.
On September 8, Cantor Fitzgerald analyst Jonathan Ruykhaver initiated coverage of Cloudflare, Inc. (NYSE:NET) stock with a Neutral rating and a price target of $65, noting that the firm was a disruptor in the networking and security markets.
At the end of the second quarter of 2022, 41 hedge funds in the database of Insider Monkey held stakes worth $541 million in Cloudfare, Inc. (NYSE:NET), compared to 44 in the previous quarter worth $1.2 billion.
In its Q2 2022 investor letter, Baron Funds, an asset management firm, highlighted a few stocks and Cloudfare, Inc. (NYSE:NET) was one of them. Here is what the fund said:
“Despite posting solid quarterly results with 54% revenue growth, and a record addition of 14,000 customers, shares of Cloudflare, Inc. (NYSE:NET), a software infrastructure provider, declined 63% in the quarter along with other fast-growing names in the software universe that penalize current profitability by reinvesting back in their businesses. We believe Cloudflare’s disruptive global platform and unmatched pace of innovation will enable the company to continue to take share across multiple large addressable markets for years to come.”
2. Shopify Inc. (NYSE:SHOP)
Number of Hedge Fund Holders: 60
Percentage Increase in Stake During Q2 2022: 35%
Loss in Share Price Year-to-Date as of September 21: 77%
Shopify Inc. (NYSE:SHOP), a commerce company, provides an e-commerce platform and services. The hedge fund chaired by Wood owned close to 1.2 million shares of Shopify Inc. (NYSE:SHOP) at the end of June 2022 worth $455 million, representing 2.69% of the portfolio.
On September 8, investment advisory Oppenheimer maintained an Outperform rating on Shopify Inc. (NYSE:SHOP) stock with a price target of $45. Analyst Ken Wong issued the ratings update.
Among the hedge funds being tracked by Insider Monkey, London-based investment firm Fundsmith LLP is a leading shareholder in Shopify Inc. (NYSE:SHOP), with 10.2 million shares worth more than $814 million.
In its Q2 2022 investor letter, Baron Funds, an asset management firm, highlighted a few stocks and Shopify Inc. (NYSE:SHOP) was one of them. Here is what the fund said:
“Shopify Inc. (NYSE:SHOP) is a cloud-based software provider offering an operating system for multi-channel commerce. Shares fell due to continued post-pandemic e-commerce normalization as economies reopen, concerns about competition following Amazon’s announcement of Buy with Prime, as well as the broader sell-off in growth stocks. We remain shareholders due to Shopify’s strong competitive positioning, innovative culture, and long runway for growth as it currently addresses less than 1% of global commerce spend.”
1. NVIDIA Corporation (NASDAQ:NVDA)
Number of Hedge Fund Holders: 102
Percentage Increase in Stake During Q2 2022: 103,405%
Loss in Share Price Year-to-Date as of September 21: 56%
NVIDIA Corporation (NASDAQ:NVDA) operates as a visual computing firm. Latest data shows that ARK owned close to 675,886 shares of NVIDIA Corporation (NASDAQ:NVDA) at the end of June 2022 worth $126 million, representing 0.74% of the total portfolio.
On August 8, Oppenheimer analyst Rick Schafer maintained an Outperform rating on NVIDIA Corporation (NASDAQ:NVDA) stock and lowered the price target to $250 from $300, noting that there was a weakness in PC and gaming unit sales for the firm.
At the end of the first quarter of 2022, 102 hedge funds in the database of Insider Monkey held stakes worth $6.3 billion in NVIDIA Corporation (NASDAQ:NVDA), compared to 110 the preceding quarter worth $10.4 billion.
In its Q1 2022 investor letter, RiverPark Funds, an asset management firm, highlighted a few stocks and NVIDIA Corporation (NASDAQ:NVDA) was one of them. Here is what the fund said:
“NVIDIA Corporation (NASDAQ:NVDA) is the leading designer of graphics processing chips (commonly known as GPU’s- graphics processing units), required for powerful computer processing. Over the past 20 years, the company has evolved through innovation and adaptation from a predominantly gaming- focused chip vendor to one of the largest semiconductor/software vendors in the world, dominating the core secular growth markets of gaming, data centers and professional visualization. Over the past decade, the company has grown revenue at a compound annual rate of over 20% while expanding operating margins and, through its asset light business model, producing ever increasing amounts of free cash flow. For 2021 the company generated 61% revenue growth to $27 billion, expanded its EBITDA margins to over 44% and generated over $8 billion of free cash flow. Over the past five years, the company has generated a cumulative $23 billion of FCF after cumulative capital expenditures of less than $4 billion.
We expect future growth to remain robust as NVIDIA Corporation (NASDAQ:NVDA) chips and software are critical to many of the core technologies being adopted globally, including cloud computing, virtual reality and advanced artificial intelligence. As with NFLX, we took advantage of the over 40% recent drop in the company’s shares over the last several months to initiate a small position.”
You can also take a peek at 10 Best Healthcare Dividend Stocks to Buy Now and 10 Dividend Stocks with Over 20 Years of Dividend Increases.
