In this article, we discuss Cathie Wood’s 5 new stock picks. If you want to read our detailed analysis of these stocks, go directly to Cathie Wood Stock Portfolio: 10 Newest Stock Picks This Year.
5. UiPath Inc. (NYSE:PATH)
Number of Hedge Fund Holders: 46
AI company UiPath Inc. (NYSE:PATH) ranks fifth on the list of Cathie Wood’s new stock picks. The New York-based company creates software for robotic process automation (RPA) that is used to provide business and cognitive processes in finance, operations, customer service, and other industries.
Based on Cathie Wood’s SEC 13F filings, the hedge fund owned 11,875,886 shares of UiPath Inc. (NYSE:PATH) worth $806 million as of August 5, 2021. This represents 1.5% of the total holdings of ARK Investment Management.
On September 17, Barclays analyst Raimo Lenschow upgraded UiPath Inc. (NYSE:PATH) to Overweight from Equal-Weight and increased his price target for the stock to $71 from $70.
In the second quarter of 2021, UiPath Inc. (NYSE:PATH) reported an EPS of $0.01, beating estimates by $0.07. The company’s revenue in the second quarter was $195.5 million, an increase of 40% year over year, and beat revenue estimates by $9.03 million.
In the Q2 2021 investor letter of ClearBridge Investments, the fund mentioned UiPath Inc. (NYSE:PATH), and discussed its stance on the firm. Here is what the fund said:
“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.”
4. Etsy, Inc. (NASDAQ:ETSY)
Number of Hedge Fund Holders: 47
Based on Cathie Wood’s SEC 13F filings, the hedge fund owned 353,421 stakes in Etsy, Inc. (NASDAQ:ETSY) worth $72.7 million as of August 5, 2021. This represents 0.13% of the total holdings of ARK Investment Management.
On September 28, Loop Capital analyst Laura Champine kept a Buy rating on Etsy, Inc. (NASDAQ:ETSY) and increased her price target to $245 from $220, noting the company’s recent acquisitions in the United Kingdom and Brazil as a smart growth move into international markets.
In the second quarter of 2021, Etsy, Inc. (NASDAQ:ETSY) reported an EPS of $0.87, beating estimates by $0.13. The company’s second-quarter revenue was $528.9 million, an increase of 23.4% year over year, and beat revenue estimates by $3.2 million. The company recorded a 14.2% year-over-year increase in gross merchandise sales (GMS) to $3.04 billion. The stock has gained 27%, year to date.
At the end of the second quarter of 2021, 47 hedge funds in the database of Insider Monkey held stakes worth $1.73 billion in Etsy, Inc. (NASDAQ:ETSY), down from 53 in the previous quarter worth $1.64 billion.
In its Q1 2021 investor letter, Polen Capital mentioned Etsy, Inc. (NASDAQ:ETSY), and shared their insights on the company. Here is what the fund said:
“Etsy continued to be a top contributor in the Portfolio during the first quarter. Etsy experienced record levels of demand in 2020. Throughout the beginning of this year, the business has continued to see accelerated growth trends. The company’s recently announced fourth-quarter results provided numerous data points that highlight Etsy’s success in both broadening and deepening the relationship it has with buyers and sellers on its platform. In fact, Etsy now stands as the fourth largest e-commerce site in the U.S. Repeat buyers have grown nearly 100% year-over-year, despite mask sales, which grew rapidly at the onset of the pandemic, shrinking to less than 5% of sales.
We continue to believe Etsy remains in the early stages of growing out its platform.
We remain confident in its ability to compound its value for shareholders at an attractive rate going forward.”
3. Coinbase Global, Inc. (NASDAQ:COIN)
Number of Hedge Fund Holders: 49
According to Cathie Wood’s latest SEC 13F filings, the hedge fund owned 5,617,415 shares of Coinbase Global, Inc. (NASDAQ:COIN) worth $1.42 billion as of August 5, 2021, accounting for 2.64% of ARK Investment Management LLC’s holdings.
On September 14, Piper Sandler analyst Richard Repetto reiterated an Overweight rating on Coinbase Global, Inc. (NASDAQ:COIN) with a price target of $335 per share.
In the second quarter of 2021, Coinbase Global, Inc. (NASDAQ:COIN) reported an EPS of $6.78, beating estimates by $4.09. The company’s revenue in the second quarter came in at $2.23 billion and beat revenue estimates by $345.98 million. Coinbase Global, Inc. (NASDAQ:COIN) had 8.8 million monthly transacting users in Q2 2021, up from 1.5 million users in Q2 2020.
At the end of the second quarter of 2021, 49 hedge funds in the database of Insider Monkey held stakes worth $2.96 billion in Coinbase Global, Inc. (NASDAQ: COIN), up from 0 in the preceding quarter.
2. Okta, Inc. (NASDAQ:OKTA)
Number of Hedge Fund Holders: 57
Okta, Inc. (NASDAQ:OKTA) is an identity management company based in San Francisco that ranks second on the list of Cathie Wood’s new stock picks. Okta, Inc. (NASDAQ:OKTA) provides an enterprise identity management platform to small and medium-sized businesses.
On September 28, Morgan Stanley analyst Hamza Fodderwala upgraded Okta, Inc. (NASDAQ:OKTA) to Overweight from Equal-Weight and raised his price target for the stock to $315 from $275, citing that OKTA is well-positioned to benefit from the growing market of identity and access management.
In the second quarter of the fiscal year 2022, Okta, Inc. (NASDAQ:OKTA) reported an EPS of -$0.11, beating estimates by $0.22. The company’s revenue in the second quarter grew 57% year over year to $316 million and beat revenue estimates by $22.3 million. The stock has gained 11.68% in the past twelve months.
At the end of the second quarter of 2021, 57 hedge funds in the database of Insider Monkey held stakes worth $2.09 billion in Okta, Inc. (NASDAQ:OKTA), up from 48 in the previous quarter worth $1.61 billion.
1. The Walt Disney Company (NYSE:DIS)
Number of Hedge Fund Holders: 112
Entertainment giant The Walt Disney Company (NYSE:DIS) tops the list of Cathie Wood’s new stock picks.
According to Cathie Wood’s latest SEC 13F filings, the hedge fund owned 152,406 shares of The Walt Disney Company (NYSE:DIS) worth $26.7 million as of August 5, 2021, which represents 0.04% of ARK Investment Management LLC’s holdings.
On September 28, Wells Fargo maintained an Overweight rating on The Walt Disney Company (NYSE:DIS) with a price target of $203 per share.
At the end of the second quarter of 2021, 112 hedge funds in the database of Insider Monkey held stakes worth $10.8 billion in The Walt Disney Company (NYSE:DIS), down from 134 in the previous quarter worth $12.5 billion.
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