In this article, we discuss 5 stocks that Cathie Wood is not letting go of despite losses. If you want to see more stocks in this selection, click Cathie Wood is Not Letting Go of These 10 Stocks Despite Losses.
5. Teladoc Health, Inc. (NYSE:TDOC)
Number of Hedge Fund Holders: 36
YTD Share Price Decline as of July 22: 56.84%
Teladoc Health, Inc. (NYSE:TDOC) is a New York-based virtual healthcare company. Cathie Wood boosted her Teladoc Health, Inc. (NYSE:TDOC) stake in Q2 2022 by 5%, holding more than 20 million shares worth roughly $692 million. Teladoc Health, Inc. (NYSE:TDOC) has been part of the ARK portfolio since the first quarter of 2018.
On July 20, Barclays analyst Steve Valiquette maintained an Equal Weight rating on Teladoc Health, Inc. (NYSE:TDOC) and lowered the price target on the stock to $42 from $45. Following a softer than expected Q1 print and management’s guidance cut for 2022, investors will now focus on the long-term outlook to achieve the targets outlined at the investor day last year, the analyst mentioned in a research note.
According to Insider Monkey’s data, 36 hedge funds were bullish on Teladoc Health, Inc. (NYSE:TDOC) at the end of the first quarter of 2022, down from 39 funds in the preceding quarter. Paul Marshall and Ian Wace’s Marshall Wace LLP is one of the leading stakeholders of the company, with 1.5 million shares worth about $112 million.
Here is what Greenhaven Road Capital has to say about Teladoc Health, Inc. (NYSE:TDOC) in its Q1 2022 investor letter:
“Teladoc is the largest telehealth provider in the US and has recently begun to expand internationally. TDOC’s platform enables an ever-expanding list of patient-doctor interactions (including those for primary health care, mental health issues and chronic condition management) to transition from an on-site visit to one that can be done remotely with full video- based interaction. TDOC provides its platform of services on both a business-to-business and direct-to-consumer basis, through monthly subscription-based relationships. For its core business-to-business clients, the company contracts with a wide range of entities, including large scale employers (the company currently contracts with over 50% of the Fortune 500), health plans, health systems, and medical insurance companies, which currently cover more than 50 million members. For these customers, the company provides a win-win-win, as patients spend no time traveling and less time waiting, doctors are more efficient seeing more patients in less time, and payers (employers and plan sponsors) save money while being able to offer a highly popular additional benefit for their employees. This B to B market is projected to be a +$100 billion market opportunity and TDOC is the clear global market leader. For its direct-to- consumer clients, the company provides a growing suite of services for individuals to have affordable access to on-demand and scheduled medical services, for which their current insurance does not provide reimbursement (such as extended mental health counseling).
Although the company has been growing steadily for well over a decade, the business has transformed over the past few years as the COVID pandemic caused a significant increase in the demand for virtual healthcare. In addition, the company’s 2020 acquisitions of Livongo, the leader in virtual chronic condition management, and InTouch, a competitive telehealth platform, materially broadened the company’s product offerings. At its recent analyst day, management guided to 25-30% top line growth for each of the next three years, exiting 2024 with more than $4 billion in annual revenue. The company also anticipates expanding margins by 100-150 basis points per year in each of the next three years, while still accelerating its investments in marketing and R&D. As with many of our recent purchases, we took advantage of the decline in the company’s shares (down a breathtaking 70% from its 2021 high of almost $300 per share) to establish a small position in Teladoc.”
4. UiPath Inc. (NYSE:PATH)
Number of Hedge Fund Holders: 33
YTD Share Price Decline as of July 22: 55.50%
UiPath Inc. (NYSE:PATH) offers an end-to-end automation platform with a range of robotic process automation solutions to clients in the United States, Romania, and Japan. Cathie Wood’s ARK Investment Management added 12% to her existing UiPath Inc. (NYSE:PATH) stake in Q2 2022, holding 37.5 million shares worth $641.75 million. The stock has declined 55.5% year to date as of July 22.
Canaccord analyst Kingsley Crane on July 7 initiated coverage of UiPath Inc. (NYSE:PATH) with a Buy rating and a $25 price target. He remains bullish on UiPath Inc. (NYSE:PATH)’s ability to leverage automation in a wide range of use cases and expects partners, like EY and PwC, to give it “critical sales leverage,” the analyst told investors.
According to Insider Monkey’s data, 33 hedge funds were long UiPath Inc. (NYSE:PATH) at the end of Q1 2022, up from 28 funds in the earlier quarter. Alkeon Capital Management is a prominent shareholder of the company, with 13 million shares worth $281.7 million.
Here is what ClearBridge Investments has to say about UiPath Inc. (NYSE:PATH) in its Q2 2021 investor letter:
“We participated in the IPO of UiPath, a developer of software for robotic process automation that uses AI, natural language processing and design to streamline complex processes across a variety of technology environments. The company is an industry leader with a superior solution for leveraging software to optimize workloads. Organizations around the world are beginning to understand the power of automation, with momentum picking up toward fully automating business processes, a $60 billion market today that could grow to $200 billion or more by 2030. UiPath has a unique pricing model, broad partner ecosystem and thoughtful management team supporting one of the strongest growth profiles in technology. Risks we are watching include a partial cloud transition ahead and increased competition from larger software platforms over time.”
3. Twilio Inc. (NYSE:TWLO)
Number of Hedge Fund Holders: 75
YTD Share Price Decline as of July 22: 66.61%
Twilio Inc. (NYSE:TWLO) provides a cloud communications platform that enables customer engagement within software applications. Cathie Wood strengthened her hold on Twilio Inc. (NYSE:TWLO) by 11% in Q2 2022, holding 5.5 million shares worth $586 million.
On July 22, Cowen analyst J. Derrick Wood reiterated an Outperform rating on Twilio Inc. (NYSE:TWLO) but lowered the price target on the shares to $150 from $250. The analyst expects strong results and maintains a constructive tone on the guidance, which he thinks would be better than what is factored into the stock. He has always thought 2H22 would present a solid setup and he still stands by this view, the analyst added.
Among the hedge funds tracked by Insider Monkey, 75 funds were long Twilio Inc. (NYSE:TWLO) at the end of Q1 2022, compared to 80 funds in the earlier quarter. Matrix Capital Management is a significant shareholder of the company, with 2.6 million shares worth $431.3 million.
Here is what Carillon Scout Mid Cap Fund has to say about Twilio Inc. (NYSE:TWLO) in its Q1 2022 investor letter:
“Twilio (NYSE:TWLO), the messaging and marketing automation software platform, sold off along with other highly valued software-as-a-service providers. Although the company management team expects continued strong growth, investors have grown concerned that demand could slow following the surge in digital communication during the pandemic.”
2. Shopify Inc. (NYSE:SHOP)
Number of Hedge Fund Holders: 72
YTD Share Price Decline as of July 22: 72.54%
Shopify Inc. (NYSE:SHOP) is a Canadian e-commerce company operating in Canada, the United States, Europe, the Middle East, Africa, the Asia Pacific, and Latin America. Cathie Wood’s ARK Investment Management boosted its Shopify Inc. (NYSE:SHOP) position by 35% in Q2 2022. The hedge fund owned 1.2 million shares worth $455.20 million. The company has featured on the ARK portfolio since Q2 2017.
On July 18, Wells Fargo analyst Jeff Cantwell reaffirmed an Overweight rating on Shopify Inc. (NYSE:SHOP) and lowered the price target on the stock to $40 from $55. As the analyst examined Shopify Inc. (NYSE:SHOP)’s June numbers, his confidence in Q2 results waned, and he cut his estimates. He told investors that June data shows year-over-year declines in both visits and unique visitors to Shopify Inc. (NYSE:SHOP)’s login page. The challenging macro backdrop will impact Shopify Inc. (NYSE:SHOP) gross merchandise volume/revenue growth in 2023, which is why the analyst revised his 2023 estimates downwards.
According to Insider Monkey’s database, 72 hedge funds were bullish on Shopify Inc. (NYSE:SHOP) at the end of March, down from 86 funds in the prior quarter. Stephen Mandel’s Lone Pine Capital is a prominent shareholder 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.”
1. Intellia Therapeutics, Inc. (NASDAQ:NTLA)
Number of Hedge Fund Holders: 35
YTD Share Price Decline as of July 22: 45.04%
Intellia Therapeutics, Inc. (NASDAQ:NTLA) is a Massachusetts-based genome editing company. Cathie Wood’s hedge fund increased its position in Intellia Therapeutics, Inc. (NASDAQ:NTLA) by 6% in Q2 2022, holding 9.5 million shares worth $439 million. The stock represents 2.59% of the total 13F portfolio.
Piper Sandler analyst Swapnil Malekar on June 24 kept an Overweight rating on Intellia Therapeutics, Inc. (NASDAQ:NTLA) with a $171 price target after updated data from NTLA-2001 in transthyretin amyloidosis with polyneuropathy. This data “continues to increase our conviction in the potential for one time treatment option for NTLA-2001,” the analyst told investors in a research note. The analyst says the safety profile “remained clean” with no new worrying signals in the longer follow-up.
Among the hedge funds tracked by Insider Monkey, 35 funds were long Intellia Therapeutics, Inc. (NASDAQ:NTLA) at the end of Q1 2022, up from 31 funds in the last quarter. Andreas Halvorsen’s Viking Global is a notable position holder in the company, with 2.5 million shares worth $179.40 million.
Carillon Tower Advisers discussed its stance on Intellia Therapeutics, Inc. (NASDAQ:NTLA) in its Q2 2021 investor letter. Here is what it said:
“Intellia Therapeutics is a clinical-stage genome editing company focused on the development of proprietary, potentially curative therapeutics. The company’s stock soared after announcing positive interim data from an ongoing phase 1 clinical study of its in vivo gene editing candidate, which is being developed as a single-dose treatment for hereditary transthyretin (ATTR) amyloidosis. This specific form of therapy would be the first of its kind resulting in the precision editing of a gene in a target tissue in the human body.”
You can also take a look at 10 Most Shorted Stocks to Watch in July and 10 Best Cyclical Stocks for Inflation.
