In this article, we discuss the 5 stocks that Cathie Wood is loading up on. If you want to read about some more stocks in the Cathie Wood portfolio, go directly to Cathie Wood is Loading Up on These 10 Stocks.
5. Cloudflare, Inc. (NYSE:NET)
Number of Hedge Fund Holders: 41
Percentage Increase in Stake During Q2 2022: 33%
Cloudflare, Inc. (NYSE:NET) owns and runs a cloud platform. 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 August 11, Guggenheim analyst John DiFucci initiated coverage of Cloudflare, Inc. (NYSE:NET) stock with a Neutral rating and a price target of $82, noting that the firm was trading at a premium to peers.
At the end of the second quarter of 2022, 41 hedge funds in the database of Insider Monkey held stakes worth $541 million in Cloudflare, Inc. (NYSE:NET), compared to 44 in the previous quarter worth $1.2 billion.
In its Q1 2022 investor letter, Baron Funds, an asset management firm, highlighted a few stocks and Cloudflare, Inc. (NYSE:NET) was one of them. Here is what the fund said:
“Cloudflare, Inc. (NYSE:NET), another new purchase during the quarter, is a web infrastructure and website security provider. Cloudflare disrupts legacy networking vendors by enabling customers to rent their network solutions in the cloud (and pay for usage) instead of buying firewalls, load balancers and secure web gateway devices. Using a global network in over 100 countries, Cloudflare delivers content and security within 50 milliseconds of 95% of the internet-connected population in the world. Shares contributed 12bps to results on impressive fourth quarter earnings as it continues to successfully layer high-value services such as zero trust, network services, and edge programmability on top of its modern global network. The company is attracting a broader set of investors as Cloudflare now matches durable 50%-plus top-line growth (this was the fifth straight quarter of 50%-plus revenue growth, and 56% current bookings growth suggests strong durability into 2022) with positive operating margins and break-even free cash flow. We believe that Cloudflare will benefit from long-duration of growth disrupting a $100 billion addressable market across application services, network services, and zero-trust services.”
4. IronSource Ltd. (NYSE:IS)
Number of Hedge Fund Holders: 30
Percentage Increase in Stake During Q2 2022: 34%
IronSource Ltd. (NYSE:IS) owns and runs a business platform for app developers and telecom operators. Latest 13F filings show that ARK owned over 516,400 shares of IronSource Ltd. (NYSE:IS) at the end of June 2022, worth $1.4 million.
On August 11, investment advisory Credit Suisse downgraded IronSource Ltd. (NYSE:IS) stock to Neutral from Outperform and lowered the price target to $5.42 from $13. Analyst Stephen Ju issued the ratings update.
At the end of the second quarter of 2022, 30 hedge funds in the database of Insider Monkey held stakes worth $198 million in IronSource Ltd. (NYSE:IS), compared to 36 in the preceding quarter worth $422 million.
3. Shopify Inc. (NYSE:SHOP)
Number of Hedge Fund Holders: 60
Percentage Increase in Stake During Q2 2022: 35%
Shopify Inc. (NYSE:SHOP) provides a commerce platform and related 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 August 11, Atlantic Equities analyst Kunaal Malde upgraded Shopify Inc. (NYSE:SHOP) stock to Overweight from Neutral with a price target of $46, noting the firm was a market leader in product innovation.
At the end of the second quarter of 2022, 60 hedge funds in the database of Insider Monkey held stakes worth $3.2 billion in Shopify Inc. (NYSE:SHOP), compared to 72 in the preceding quarter worth $5.7 billion.
In its Q1 2022 investor letter, Polen Capital, an asset management firm, highlighted a few stocks and Shopify Inc. (NYSE:SHOP) was one of them. Here is what the fund said:
“We added to the Portfolio’s position in e-commerce company Shopify Inc. (NYSE:SHOP) 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 Inc. (NYSE:SHOP) may have changed, which created an opportunity for us to build our position in the company at what we believed to be compelling valuations.”
2. Global-e Online Ltd. (NASDAQ:GLBE)
Number of Hedge Fund Holders: 17
Percentage Increase in Stake During Q2 2022: 45%
Global-e Online Ltd. (NASDAQ:GLBE) operates in the cross-border ecommerce industry. The hedge fund of Cathie Wood owned 812,173 shares of Global-e Online Ltd. (NASDAQ:GLBE) at the end of the second quarter of 2022 worth more than $15.6 million, representing 0.09% of the total portfolio.
On August 17, Morgan Stanley analyst James Faucette maintained an Overweight rating on Global-e Online Ltd. (NASDAQ:GLBE) stock and raised the price target to $51 from $34, backing the firm to continue strong progress into next year.
At the end of the second quarter of 2022, 17 hedge funds in the database of Insider Monkey held stakes worth $508 million in Global-e Online Ltd. (NASDAQ:GLBE), compared to 26 in the previous quarter worth $950 million.
1. Matterport, Inc. (NASDAQ:MTTR)
Number of Hedge Fund Holders: 7
Percentage Increase in Stake During Q2 2022: 95%
Matterport, Inc. (NASDAQ:MTTR) is a spatial data company based in California. ARK Investment Management owned 1 million shares in Matterport, Inc. (NASDAQ:MTTR) at the end of June 2022 worth $5.6 million, representing 0.03% of the portfolio of the fund.
On August 16, Wolfe Research analyst Gal Munda initiated coverage of Matterport, Inc. (NASDAQ:MTTR) stock with a Peer Perform rating, noting the firm produced best-in-class reality capture software for a number of industries.
At the end of the second quarter of 2022, 7 hedge funds in the database of Insider Monkey held stakes worth $22 million in Matterport, Inc. (NASDAQ:MTTR), compared to 12 in the previous quarter worth $52 million.
In its Q4 2021 investor letter, Miller Value Partners, an asset management firm, highlighted a few stocks and Matterport, Inc. (NASDAQ:MTTR) was one of them. Here is what the fund said:
“Matterport Inc. (MTTR) continued to be a strong contributor during the quarter after Matterport’s ability to contribute to the building of the metaverse was brought to light. The company reported 3Q results that missed consensus due to unexpected supply constraints and labor shortage in its capture services. The company reported total sales of $27.7M below consensus of $29.1M but with gross profit beating coming in at $15.2M versus $15.1M expected leading to an EPS loss of -$0.06 slightly better than consensus of -$0.07. The company lowered full-year revenue guidance to $107-110M down from $120-126M previously while also lowering FY22 topline guidance to 50% growth from 65% at the time of the PIPE transaction due to continuing supply constraints and labor shortage.”
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