In this article, we will take a detailed look at Cathie Wood Was Buying These 11 Stocks for 2024. For a quick overview of such stocks, read our article Cathie Wood Was Buying These 5 Stocks for 2024.
Cathie Wood was again in the news recently after data from Morningstar showed that ARK ETF Trust lost about $14.3 billion in shareholder value over the past decade. Investors have also questioned Cathie Wood’s decision to sell Nvidia in January 2023 just when the AI boom was taking off. Cathie Wood has clearly missed on the huge Nvidia rally, but she says investing in Nvidia was too easy and expensive. In May 2022 Cathie Wood in a tweet had said that Artificial General Intelligence (AGI) was expected to transform how the world works.
“Within 6-12 years, breakthroughs in AGI could a accelerate growth in GDP from 3-5% per year to 30-50% per year. New DNA will win!,” Cathie Wood had said.
Despite her prescient thought process Cathie Wood failed to foresee the potential of Nvidia and instead kept on piling into stocks many of which are still money-losing. Was that a blunder or there’s something the market is missing and only Cathie Wood can see due to her long-term horizon? Only time would tell.
ARK Innovation’s Strong Performance in 2023
Despite these performance gaps what is causing ARK investors to stick around? After all, ARK funds have not seen a mass investor exodus. One reason could be Cathie Wood’s investment philosophy which almost always demands having at least five-year investment horizon. Perhaps ARK investors are patient and they are waiting for Cathie Wood’s ambitious and futuristic bets to pay off. And these investors were also impressed with ARK’s performance last year. ARK Investment Management’s flagship ETF ARK Innovation exchange-traded fund ($ARKK) rallied about 70% in 2023. This was the fund’s third best performance in a year on record since its inception in 2014. ARK Innovation ETF is up 30% over the past one year.
A Bloomberg report quoted Mohit Bajaj, director of ETFs at WallachBeth Capital, who said:
“I don’t think a single name has really hurt their brand,” he said. “It’s just a matter of performance with the fund. Things might perform better as Bitcoin appreciates.”
Cathie Wood of ARK Investment Management
Methodology
While Cathie Wood’s portfolio’s top holdings include Tesla Inc (NASDAQ:TSLA), Block Inc (NYSE:SQ) and Shopify Inc (NYSE:SHOP), for this article we decided to see which stocks Cathie Wood was buying for 2024. For that we scanned ARK Investment Management’s Q4’2023 portfolio and picked 11 stocks in which the fund either increased its stakes or initiated new positions. Hedge funds’ top 10 consensus stock picks outperformed the S&P 500 Index by more than 140 percentage points over the last 10 years (see the details here).
11. Nano-X Imaging Ltd. (NASDAQ:NNOX)
Cathie Wood’s Stake: $1,968,935
Tomographic imaging technology company Nano-X Imaging Ltd. (NASDAQ:NNOX) ranks 11th in our list of the stocks Cathie Wood was buying for 2024. Cathie Wood upped her stake in Nano-X Imaging Ltd. (NASDAQ:NNOX) by 102% during the fourth quarter of 2023. As of the end of December last year ARK had a $1.97 million stake in Nano-X Imaging Ltd. (NASDAQ:NNOX).
While Cathie Wood has missed on the Nvidia rally she did enjoy some gains from the latest jump in Nano-X Imaging Ltd. (NASDAQ:NNOX) shares that came after Nano-X Imaging Ltd. (NASDAQ:NNOX) revealed that Nvidia held an approximately $380,000 stake in Nano-X Imaging Ltd. (NASDAQ:NNOX).
10. Pagaya Technologies Ltd (NASDAQ:PGY)
Cathie Wood’s Stake: $2,055,782
Israeli fintech company Pagaya Technologies Ltd (NASDAQ:PGY) is part of the Cathie Wood’s 2024 portfolio since ARK increased its stake in Pagaya Technologies Ltd (NASDAQ:PGY) by 59% in the fourth quarter of 2023, entering the new year with a $2 million stake.
Pagaya Technologies Ltd (NASDAQ:PGY) shares have gained about 15% year to date through February 26.
9. Inmode Ltd (NASDAQ:INMD)
Cathie Wood’s Stake: $2,068,075
Israel-based aesthetic medical products company Inmode Ltd (NASDAQ:INMD) is part of Cathie Wood’s 2024 portfolio since ARK increased its stake in Inmode Ltd (NASDAQ:INMD) by 95% in the fourth quarter of 2023, concluding the period with stake worth over $2 million in Inmode Ltd (NASDAQ:INMD).
Earlier this month Inmode Ltd (NASDAQ:INMD) posted fourth quarter results. Adjusted EPS in the period came in at $0.71, surpassing estimates by $0.04. Revenue in the quarter fell 5.1% year over year to $126.78 million, beating estimates by $1.93 million.
Like Inmode, Cathie Wood also loves Tesla Inc (NASDAQ:TSLA), Block Inc (NYSE:SQ) and Shopify Inc (NYSE:SHOP).
8. Pure Storage Inc. (NYSE:PSTG)
Cathie Wood’s Stake: $17,356,792
Data storage solutions company Pure Storage Inc. (NYSE:PSTG) ranks eighth in our list of the top stocks in Cathie Wood’s 2024 portfolio. ARK increased its position in Pure Storage Inc. (NYSE:PSTG) by 175% in the fourth quarter of 2023, ending the period with a $17.4 million stake.
Stifel analyst Matthew Sheerin recently cut the stock’s rating to Hold from Buy, citing gains in the stock price since November.
As of the end of the fourth quarter of 2023, 37 hedge funds had stakes in Pure Storage Inc. (NYSE:PSTG), as per Insider Monkey’s database.
During Q3 earnings call in December the company talked about Q4 guidance:
“We have approximately $167 million remaining on our existing $250 million repurchase authorization. Now turning to our updated annual guidance for FY ’24. A key assumption used to derive our FY ’24 annual revenue guide at the beginning of the year was that the macro environment would not meaningfully improve or deteriorate throughout the year. This assumption is holding as the spending environment continues to be challenging. Though despite these challenges, we are seeing increasing demand in the second half of the year across our data storage platform especially for consumption and subscription service offerings. Although we expect the demand to increase for the second half of the year, there are two important factors that are impacting our annual revenue expectation this year, which we now expect to be $2.82 billion, growing 2.5% and Q4 revenue is expected to be $782 million, declining 3.5%.
First is the impact of our Evergreen//One Storage as a Service momentum, which will be discussed in more detail. And second is the impact of a $41 million non-canceled product order with a telco customer that is not expected to be fulfilled until next year. Both factors on a combined basis represent approximately 4.5 points of incremental headwind when compared to the annual revenue guide we provided at the beginning of the year. We are very pleased with the momentum and growth of our Evergreen//One service offering, while appreciating that this momentum creates a short-term impact on revenue growth. Last quarter, we stated that sales of our Evergreen//One service offering was expected to create 1 to 2 points of headwind to the annual revenue guide we provided at the beginning of the year.”
Read the full earnings call transcript here.
7. SoFi Technologies Inc. (NASDAQ:SOFI)
Cathie Wood’s Stake: $19,608,883
Cathie Wood can’t get enough of fintech and banking company SoFi Technologies Inc. (NASDAQ:SOFI). She snapped up more shares in SoFi Technologies Inc. (NASDAQ:SOFI) during the fourth quarter of 2023, increasing her stake in the firm by about 144%.
As of the end of the fourth quarter of 2023, 29 hedge funds out of the 933 funds tracked by Insider Monkey had stakes in SoFi Technologies Inc. (NASDAQ:SOFI).
6. Nextdoor Holdings Inc. (NYSE:KIND)
Cathie Wood’s Stake: $20,388,364
Nextdoor Holdings Inc. (NYSE:KIND) ranks sixth in our list of the stocks Cathie Wood was buying for 2024. Cathie Wood’s fund increased its stake in Nextdoor Holdings Inc. (NYSE:KIND) by 57% during the last quarter of 2023, ending the period with a $20.4 million stake in Nextdoor Holdings Inc. (NYSE:KIND). The hyperlocal social networking platform Nextdoor Holdings Inc.’s (NYSE:KIND) shares have gained about 14% year to date through February 26. In addition to Nextdoor, Cathie Wood is also bullish on Tesla Inc (NASDAQ:TSLA), Block Inc (NYSE:SQ) and Shopify Inc (NYSE:SHOP).
Nextdoor talked about guidance and future plans in an earnings call in November 2023.
“We are targeting a reduction in current GAAP personnel expenses of up to $60 million annually. These actions, while difficult, increase our focus on efficiency and will accelerate the path to quarterly free cash flow breakeven by the end of 2025.
As Sarah said earlier, the Q4 revenue growth acceleration we initially expected has not materialized to date. We now expect Q4 2023 revenue in a range between $50 million and $52 million and 2023 revenue in a range between $213 million and $215 million, which implies flat to slightly higher year-over-year growth for the full year. We expect a Q4 adjusted EBITDA loss in a range between $21 million and $19 million, which excludes the impact of one-time expenses related to our cost reduction plan. This implies a 2023 adjusted EBITDA loss in a range between $81 million and $79 million. One other note, we currently estimate that those one-time severance and related costs associated with our cost reduction plan will be approximately $12 million. Across many measures, Nextdoor’s growth and momentum continue.
Even in an environment where important advertiser verticals have been pressured organic verified neighbor growth and engagement depth are accelerating. We are making continued progress transitioning to our proprietary ad platform and saw positive early results in Q3. And as we look ahead to 2024, we remain focused on growing WAU and revenue.”
Read the entire earnings call transcript here.
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Disclosure. None. Cathie Wood Was Buying These 11 Stocks for 2024 was initially published on Insider Monkey.