In this article, we discuss 5 stocks under $10 in Cathie Wood’s portfolio. If you want to see some more stocks in this selection, go see Cathie Wood’s Portfolio: 10 Stocks Under $10.
5. Skillz Inc. (NYSE:SKLZ)
Number of Hedge Fund Holders: 18
Share Price as of April 15: $2.40
Skillz Inc. (NYSE:SKLZ) runs a mobile games platform that enables players to compete in tournaments with users worldwide. Its games are distributed via an app and third-party platforms. Cathie Wood’s ARK Investment Management added Skillz Inc. (NYSE:SKLZ) to its portfolio in the first quarter of 2021, and as of Q4, the fund owns over 24 million shares of the company, worth $179.2 million.
Citi analyst Jason Bazinet on March 1 reiterated a Buy recommendation on Skillz Inc. (NYSE:SKLZ) but lowered the firm’s price target on the shares to $5 from $9 after the company’s Q4 results. The analyst, despite the Q4 earnings miss, still likes the shares since Skillz Inc. (NYSE:SKLZ) has a “unique platform and potential path to positive EBITDA.”
Among the hedge funds tracked by Insider Monkey, 18 funds were long Skillz Inc. (NYSE:SKLZ) at the end of the fourth quarter of 2021, with collective stakes amounting to $370.6 million. Leonard A. Potter’s Wildcat Capital Management is a significant position holder of the company, with 21.6 million shares worth approximately $161 million.
Here is what Bireme Capital has to say about Skillz Inc. (NYSE:SKLZ) in its Q3 2021 investor letter:
“Another short position we initiated was in Skillz (SKLZ), a mobile game publisher with $230m in 2020 revenue, and $98m of 2020 EBITDA losses. When we shorted it, SKLZ had a ~$6b valuation; it is now down to $4.5b, and we believe it has much more room to fall.
SKLZ is a great example of investors getting hyped up over a quickly-growing company employing misleading industry jargon. In this case, the jargon is “eSports.” eSports is, in fact, a large and growing industry, and the term describes the business of competitive video games. Typically, this involves hosting tournaments, either live or online, where spectators can watch professional gamers compete at high levels. Prize pools are often in the millions. Ticket sales, sponsorships, and advertising revenue from such events totaled over $1b in 2020…” (Click here to see the full text)
4. Cerus Corporation (NASDAQ:CERS)
Number of Hedge Fund Holders: 18
Share Price as of April 15: $4.83
Cerus Corporation (NASDAQ:CERS) is a California-based biomedical products company that works on technology to lower blood-borne pathogens in donated blood, preparing it for transfusion. Cathie Wood held 15.75 million Cerus Corporation (NASDAQ:CERS) shares in the fourth quarter of 2021, worth $107.3 million, representing 0.32% of the total 13F portfolio.
In a press release on February 22, Cerus Corporation (NASDAQ:CERS) posted a Q4 GAAP loss per share of $0.05, above analysts’ estimates by $0.03. The company’s revenue of $39.87 million jumped 41.4% year-over-year, in-line with market consensus. Cerus Corporation (NASDAQ:CERS) reiterated its 2022 revenue guidance ranging between $157 million to $164 million, reflecting a 20% to 25% increase versus the prior-year revenue.
Among the hedge funds tracked by Insider Monkey at the end of December 2021, 18 funds were bullish on Cerus Corporation (NASDAQ:CERS), with combined stakes worth $293.8 million. Julian Baker and Felix Baker’s Baker Bros. Advisors is a significant shareholder of the company, with 13.7 million shares valued at $93.3 million.
3. Archer Aviation Inc. (NYSE:ACHR)
Number of Hedge Fund Holders: 26
Share Price as of April 15: $4.07
Archer Aviation Inc. (NYSE:ACHR) is an air mobility company that designs and manufactures passenger aircrafts. The company was incorporated in 2018 and is headquartered in Palo Alto, California. Cathie Wood’s fund boosted its Archer Aviation Inc. (NYSE:ACHR) stake by 98%, holding 11.3 million shares of the company at the end of December 2021, worth $68.2 million.
On March 9, 746,183 Archer Aviation Inc. (NYSE:ACHR) shares were purchased by director Lore Marc E in multiple transactions priced between $2.83 and $3.28. The total transaction was worth approximately $2.3 million.
Deutsche Bank analyst Edison Yu initiated coverage of Archer Aviation Inc. (NYSE:ACHR) on April 11 with a Buy rating and a $10 price target. The analyst believes that the aviation industry is as “ripe for generational disruption” as the electric vehicles market and expects the conventional aircrafts ultimately being replaced by electric aircrafts in metropolitan areas.
According to the fourth quarter database of Insider Monkey, 26 hedge funds placed bullish calls on Archer Aviation Inc. (NYSE:ACHR), compared to 28 funds in the prior quarter. Glenn Russell Dubin’s Highbridge Capital Management is the biggest stakeholder of the company, with 2.3 million shares worth $22.7 million.
2. Ginkgo Bioworks Holdings, Inc. (NYSE:DNA)
Number of Hedge Fund Holders: 30
Share Price as of April 15: $3.84
Ginkgo Bioworks Holdings, Inc. (NYSE:DNA) was founded in 2008 and is headquartered in Boston, Massachusetts. The biotech company operates a cell programming platform that is used in the chemicals, agriculture, food, consumer products, and pharmaceuticals markets. On April 5, Ginkgo Bioworks Holdings, Inc. (NYSE:DNA) announced an investment of $3.5 million in Microba Life Sciences’ initial public offering on the Australian Securities Exchange, subsequently acquiring a 4% position.
Cathie Wood’s ARK Investment Management owns more than 43 million shares of Ginkgo Bioworks Holdings, Inc. (NYSE:DNA) as of Q4 2021, worth $358.8 million, representing 1.08% of the total 13F holdings. The hedge fund increased its stake in the company by 86% in the December quarter.
On March 31, BTIG analyst Mark Massaro reiterated a Buy recommendation on Ginkgo Bioworks Holdings, Inc. (NYSE:DNA) but slashed the firm’s price target on the stock to $6 from $12. The company’s Q4 results were better than expected and demand is historically at a record-high, the analyst told investors in a research note.
According to Insider Monkey’s Q4 data, 30 hedge funds held long positions in Ginkgo Bioworks Holdings, Inc. (NYSE:DNA), with combined stakes of $4.2 billion, compared to 32 funds in the earlier quarter, holding stakes in Ginkgo Bioworks Holdings, Inc. (NYSE:DNA) worth $5.6 billion.
1. SomaLogic, Inc. (NASDAQ:SLGC)
Number of Hedge Fund Holders: 37
Share Price as of April 15: $6.71
SomaLogic, Inc. (NASDAQ:SLGC) is a Colorado-based clinical diagnostics company that primarily focuses on protein biomarker discovery. Cathie Wood’s fund owns 8.8 million shares of SomaLogic, Inc. (NASDAQ:SLGC) as per the 13F filings from Q4 2021. The stake is valued at $102.8 million, representing 0.31% of the total holdings.
On March 29, SomaLogic, Inc. (NASDAQ:SLGC) reported a fourth quarter revenue of $23 million, surpassing market consensus estimates by $1.55 million. According to guidance for 2022, the company expects its revenue to range between $105 million to $110 million, versus a consensus of $103.45 million.
Canaccord analyst Kyle Mikson stated on March 30 that SomaLogic, Inc. (NASDAQ:SLGC)’s reported Q4 results exceeded expectations and consensus. He said that the company appears to be executing well on its growth strategy and remains optimally positioned to capitalize on the large proteomics market opportunity in both traditional research and clinical diagnostics. The analyst believes SomaLogic, Inc. (NASDAQ:SLGC) shares presently do not reflect the company’s long-term growth capacity.
In the fourth quarter of 2021, 37 hedge funds in Insider Monkey’s database of elite funds were long SomaLogic, Inc. (NASDAQ:SLGC), collectively holding stakes worth $630.2 million. Eli Casdin’s Casdin Capital is the largest position holder in the company, with 12.3 million shares valued at $144.2 million.
You can also take a look at 10 Best Stocks To Buy For Beginners Right Now and 10 Best ETFs to Invest In for Retirement.
