In this article, we will take a look at 15 stocks in Cathie Wood’s stock portfolio.
Cathie Wood is one of Wall Street’s most contentious figures. She founded ARK Investment Management around ten years ago and has over three decades of experience in the financial sector, including a notable spell as chief investment officer of AllianceBernstein Holding LP’s global thematic strategies unit. An 87.4% return in the fund, driven by a 1300% growth in Grayscale Bitcoin Trust, made it one of the fund’s best years since its debut in 2017. This performance came about at a time when Bitcoin’s price had reached a record high of $20,000.
Cathie Wood’s investing strategy is pretty straightforward: her ARK ETFs invest in developing high-tech firms in artificial intelligence, blockchain, medicinal technology, and robotics. Wood believes these firms can transform sectors, but their volatility causes significant fluctuations in ARK’s valuations. Although supporters of Wood hail her as a tech visionary, her detractors call her a run-of-the-mill fund manager. Additionally, despite achieving a 153% return in 2020, her long-term performance has raised questions regarding the viability of her high-risk, high-reward investment style. With $6,269 million under management, the ARK Innovation ETF has returned an annualized 14.24% over the last five years and a 12.16% year-to-date. The Nasdaq Composite, on the other hand, has an average return of 106.84% over five years.
Big Ideas 2025
Following recent changes in technology markets, Cathie Wood and her ARK research team released the yearly blockbuster report “Big Ideas 2025.” Wood seems optimistic about the future of AI computing power and AI agents. She added that from the dawn of artificial intelligence in 2018, computer performance has multiplied 40 times, and by 2023, it will have exceeded 48 times. Computing performance is predicted to hit a new high by the end of this century, mainly due to the rapid growth of AI. Specifically, Cathie Wood believes that AI agents are the central subject of future development, with the potential to accelerate the adoption of digital applications and spark unfathomable changes in human-computer interaction. Narrowing it down to specific industries, these agents will also press for an increase in the use of digital wallets in e-commerce. According to ARK research, digital wallets powered by AI purchasing agents are gaining market share from traditional payment methods such as credit and debit cards, with digital wallets anticipated to account for 72% of all e-commerce transactions by 2030.
Cathie Wood of ARK Investment Management
Our Methodology
For this article, we scanned ARK Investment Management’s Q3 portfolio and chose its top 15 stock picks. The stocks are ranked in ascending order of the fund’s stakes in them.
Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 275% since May 2014, beating its benchmark by 150 percentage points (see more details here).
15. Meta Platforms, Inc. (NASDAQ:META)
ARK Investment Management’s Q3 Stake Value: $227.7 million
Number of Hedge Fund Holders: 235
Meta Platforms, Inc. (NASDAQ:META) is a leading technology company best known for its flagship platforms Facebook, Instagram, and WhatsApp, as well as its novel advances in virtual reality (VR) and augmented reality (AR). AI-powered improvements to Meta’s algorithms and user experience continue to generate ad revenue for the social media giant. Every month, more than 500 million people use the company’s platforms, demonstrating the widespread adoption of its Llama AI approach.
On January 30, UBS analyst Stephen Ju reaffirmed his Buy rating on Meta Platforms Inc. (NASDAQ:META) and increased the company’s share price target from $736 to $786. Ju’s optimism comes from his belief that, based on Meta’s most recent guidance and budget announcements, the company will outperform revenue and earnings expectations in 2025. Although most analysts predict that Meta Platforms, Inc. (NASDAQ:META) will increase its ad revenue by about $21.4 billion in 2025, he sees a potential for a higher number, especially as the company gets past the compute capacity issues that hampered growth back in 2024.
14. DraftKings Inc. (NASDAQ:DKNG)
ARK Investment Management’s Q3 Stake Value: $236.1 million
Number of Hedge Fund Holders: 54
With operations both domestically and abroad, DraftKings Inc. (NASDAQ:DKNG) is an American digital sports entertainment and gaming company that provides media content, daily fantasy sports, online sports betting and casino services, as well as a range of consumer goods.
DraftKings Inc. (NASDAQ:DKNG) reported revenue of $1.095 billion for the third quarter of 2024, depicting a 39% increase over the $790 million reported in Q3 2023. Additionally, the company reported a massive increase in Monthly Unique Payers (MUPs), which jumped 55% year-over-year to 3.6 million.
Susquehanna analysts reduced their price target for DraftKings Inc. (NASDAQ:DKNG) shares from $56 to $54 while maintaining a Positive rating on the company’s shares. In contrast to the initial estimates of $1.525 billion and $168 million, respectively, the firm’s analysts now expect DraftKings to report fourth-quarter revenue of $1.4 billion and EBITDA of $81 million. This follows the company reported a revenue increase of 40% over the previous year, reaching $4.6 billion.
13. Twist Bioscience Corporation (NASDAQ:TWST)
ARK Investment Management’s Q3 Stake Value: $242 million
Number of Hedge Fund Holders: 24
Twist Bioscience Corporation (NASDAQ:TWST) is a synthetic biology startup that provides genetic testing upstream. Unlike other companies that manufacture medications and genetic testing products, the company supplies raw materials to the industry. The company also plans to industrialize biological engineering by developing a platform that synthesizes DNA on silicon rather than traditional, well-plastic plates. This platform makes use of a proprietary semiconductor-based synthetic DNA manufacturing process to generate high-quality synthetic DNA more quickly and affordably.
Twist Bioscience’s fiscal year 2024 ended on a relatively high note, with Q4 revenues up 27% to $84.7 million and annual revenue up 28% to $330 million. Additionally, according to the company’s preliminary FY25 guidance, the Next Generation Sequencing (NGS) and Synthetic Biology (SynBio) sectors will account for much of the projected year-over-year revenue growth.
Baird reaffirmed its bullish outlook for Twist Bioscience Corporation (NASDAQ:TWST) back in December, maintaining an Outperform rating and a $48 price target. The firm’s observations were based on Twist Bioscience’s Express Genes pricing premiums, which were tracked on a daily basis. The goal of this tracking is to determine how much demand exists for the company’s synthetic gene services. The observed premiums suggest that the company’s products are in high demand, especially in business and academia. Baird stated that while higher pricing premiums could be viewed positively, they were hesitant to apply the data directly to Twist Bioscience’s total revenue or gross margin percentages.
12. 10x Genomics, Inc. (NASDAQ:TXG)
ARK Investment Management’s Q3 Stake Value: $242.7 million
Number of Hedge Fund Holders: 29
10x Genomics, Inc. (NASDAQ:TXG), a biotechnology company based in California, develops gene sequencing technology for scientific research. The company sells a variety of items, including reagent kits, chromium controllers, informatics software, and 10x-compatible products. Cathie Wood recently made a significant investment in 10x Genomics Inc. (NASDAQ:TXG), with ARK purchasing 247,089 shares and investing $3,666,800 across its ARKK and ARKG ETFs. Wood’s belief in the genomics company is reflected in this move, which only adds to ARK’s recent accumulation trend in 10X Genomics.
According to the company’s unaudited financial results, Q4 revenue was around $165.0 million. In comparison to the same quarter last year, this figure represents a 10% decrease and a 9% sequential increase, with analysts expecting revenue of $153 million in the quarter. That said, despite a 37% decrease over the previous year, the company’s instrument sales, which include chromium and spatial instruments, increased 28% sequentially to $24.4 million. Consumables were another significant source of revenue for 10x Genomics, Inc. (NASDAQ:TXG), accounting for approximately $133.5 million.
11. Intellia Therapeutics Inc. (NASDAQ:NTLA)
ARK Investment Management’s Q3 Stake Value: $251.8 million
Number of Hedge Fund Holders: 30
A market leader in the CRISPR-Cas9 gene-editing technology space, Intellia Therapeutics Inc. (NASDAQ:NTLA) is a biotech company that is known for developing novel treatments for both in vivo and ex vivo applications. Its flagship program, NTLA-2001, aims to treat transthyretin amyloidosis, a currently incurable disease. The company has a number of other programs in its pipeline that are in various trial stages.
That said, Intellia Therapeutics Inc. (NASDAQ:NTLA) has decided to discontinue work on a number of early-stage R&D projects, as well as its development of NTLA-3001. The company expects to release more data from Phase 1/2 studies this year and is prioritizing clinical execution for NTLA-2002 and Nex-Z. The company expects a Biologics License Application (BLA) filing for NTLA-2002 in the following year as it prepares to establish commercial leadership in the second half of 2025.
On January 27, Morgan Stanley downgraded Intellia Therapeutics Inc. (NASDAQ:NTLA) from Overweight to Equalweight. In tandem with this change, the firm significantly dropped its price target for the company’s stock from $56 to $11. The revision followed Morgan Stanley’s evaluation into Intellia’s competitive environment for gene-editing treatments, with the firm noting the growing competition from alternative therapies that do not involve gene editing. Although gene therapies may provide a one-time functional cure, concerns about their high cost and the potential long-term effects of off-target editing remain. These concerns have the potential to influence patient and payer preferences, especially if non-gene-editing therapies demonstrate comparable efficacy and safety.
10. UiPath Inc. (NYSE:PATH)
ARK Investment Management’s Q3 Stake Value: $268 million
Number of Hedge Fund Holders: 34
UiPath Inc. (NYSE:PATH) is a global software company focused on robotic process automation (RPA). The company automates manual processes by including a workflow designer, recording capabilities, and visual programming tools. UiPath also supports third-party APIs, allowing users to incorporate multiple systems into their automated workflows.
Following the company’s third-quarter earnings results, Oppenheimer maintained its Perform rating on UiPath Inc. (NYSE:PATH) shares in December. The report highlighted a return to margin growth, as well as the company’s expectation that by fiscal year 2026, it will have consistent net new Annual Recurring Revenue and faster Free Cash Flow growth. However, despite these encouraging signs, there are some concerns on account of the modest growth in billings, the conservative outlook for the future, and the continued decline in net new ARR trends.
9. CRISPR Therapeutics AG (NASDAQ:CRSP)
ARK Investment Management’s Q3 Stake Value: $352.2 million
Number of Hedge Fund Holders: 27
CRISPR Therapeutics AG (NASDAQ:CRSP) is a pioneer in gene-editing technology, using its patented gene sequencing platform to produce precise cures for diseases that need DNA tampering. CASGEVY, the company’s flagship medication developed in collaboration with Vertex Pharmaceuticals, was one of the first gene-edited treatments on the market.
CRISPR Therapeutics AG (NASDAQ:CRSP) reported a solid balance sheet for the third quarter of 2024, with around $1.9 billion in marketable securities, cash, and cash equivalents. With a rich pipeline, a solid balance sheet, and an approved commercial product, the company is poised to grow its pipeline in 2025.
CRISPR Therapeutics AG (NASDAQ:CRSP) recently announced its 2025 strategic goals, with a focus on updates on several key development initiatives and the ongoing rollout of its gene-based medication CASGEVY. The FDA has designated the company’s CTX112 as a regenerative medicine advanced therapy (RMAT), and CTX131 is currently undergoing clinical trials. Furthermore, clinical trials for the company’s in vivo cardiovascular programs, including CTX310 and CTX320, are currently underway.
8. Shopify Inc. (NYSE:SHOP)
ARK Investment Management’s Q3 Stake Value: $374.3 million
Number of Hedge Fund Holders: 56
Shopify Inc. (NYSE:SHOP) is a leading provider of commerce infrastructure, giving businesses the tools they need to establish, scale, and manage their operations at all levels. Shopify’s platform is used by millions of businesses in 175 countries, making it an important tool for supporting various organizations throughout the world.
RBC Capital Markets maintained its Outperform rating on Shopify Inc. (NYSE:SHOP), with a price objective of $130, putting the stock between the analyst range of $78 and $145. The business identified Shopify as a driving force behind the predicted expansion of the S&P/TSX Information Technology sub-sector, with Shopify’s strong growth trajectory highlighted by a 23.47% revenue gain in the last year.
Polen Capital mentioned Shopify Inc. (NYSE:SHOP) in its Q2 2024 investor letter. Here is what the fund said:
“Shopify’s business model combines 1) a mission-critical software business where merchants can run all their business operations from one dashboard and 2) a payments business with a long runway to increase attach rates and grow alongside merchants. Additionally, we believe the business possesses significant optionality to continue attaching existing merchant solutions and adding more merchant services as high-margin cross-sells. With several powerful tailwinds at their back (e-commerce, mobile commerce, social media, digital payments, seamless omnichannel, DTC, cloud software digitization) and a highly scalable business model, we think their growth will likely be stronger for longer than investors expect.”
7. Palantir Technologies Inc. (NASDAQ:PLTR)
ARK Investment Management’s Q3 Stake Value: $409.86 million
Number of Hedge Fund Holders: 43
Palantir Technologies Inc. (NASDAQ:PLTR) is a data analytics and software firm that provides platforms for government agencies, financial institutions, and major companies to comprehend massive data sets.
Palantir Technologies (NASDAQ:PLTR) reported positive expectations and better-than-expected fourth-quarter earnings, driving shares of the data analytics company up more than 24% in early U.S. trade on January 3. The company announced adjusted earnings of $0.14 per share on $827.5 million in revenue for the three months ended December 31, exceeding analysts’ projections of $0.11 per share and $778.2 million. Total revenue for the quarter increased by 36% year on year, with CEO Alex Karp noting increased demand for artificial intelligence.
Moreover, that same day on January 3, Wedbush analysts raised their price target on Palantir Technologies Inc. (NASDAQ:PLTR) shares to $120 from $90, while maintaining an Outperform rating on the stock. The firm’s analysts emphasized the company’s outstanding earnings report, as well as its 2025 outlook, which outperformed market expectations. Wedbush also underscored Palantir’s role in pushing the artificial intelligence revolution, especially with its AI Product (AIP) offering, which they believe has an unrivaled competitive advantage.
6. Robinhood Markets, Inc. (NASDAQ:HOOD)
ARK Investment Management’s Q3 Stake Value: $420.9 million
Number of Hedge Fund Holders: 36
Robinhood Markets, Inc. (NASDAQ:HOOD) is a California-based financial services company that uses a mobile app to provide commission-free trading of stocks, exchange-traded funds, and cryptocurrencies, as well as administration of individual retirement plans.
KeyBanc Capital Markets increased its price target for Robinhood Markets, Inc. (NASDAQ:HOOD) shares from $50 to $57 while maintaining an Overweight rating on January 30. Alex Markgraff, a KeyBanc analyst, acknowledged that the company’s Gold Card is in high demand and that its Gold membership plan is gaining popularity. The study, which included questions about the company’s future goals, revealed an unexpected interest in futures trading, which is set to begin in 2025. Despite the hopeful outlook, the poll findings showed a modest decrease in the desire to create retirement savings accounts.
Robinhood Markets, Inc. (NASDAQ:HOOD) had another excellent quarter in fiscal Q3 2024, recording its second-highest revenues to date. Adjusted EBITDA increased by 96% over the previous year, while total revenues grew by 36%.
ClearBridge Growth Strategy stated the following regarding Robinhood Markets, Inc. (NASDAQ:HOOD) in its Q4 2024 investor letter:
“Additionally, we purchased Robinhood Markets, Inc. (NASDAQ:HOOD), an established disruptor in retail brokerage with a brand that resonates across younger cohorts. The company ushered in the era of commission-free trading by leveraging payment for order flow from market makers and also generates revenue from cryptocurrency transactions. While currently maintaining only about 1% market share of self-directed assets, Robinhood is taking share in a large, secularly growing industry. Robinhood should significantly benefit from the upcoming change in administration with reduced regulatory risk around payment-for-order flow and the potential for policies supportive of cryptocurrency to create a runway for new growth opportunities.”
5. Block Inc. (NYSE:SQ)
ARK Investment Management’s Q3 Stake Value: $444.7 million
Number of Hedge Fund Holders: 64
Block Inc. (NYSE:SQ), formerly known as Square Inc., is an American public company that encompasses diverse businesses within the financial technology sector. With integrated solutions, the company streamlines sales for vendors, while its Cash App segment makes it simple for consumers to transfer, spend, and invest in stocks.
Block Inc. (NYSE:SQ) reported a gross profit of $2.25 billion in the third quarter of 2024, up 19% from the same period last year. The company recorded net profits of $283.7 million, up from a loss of $88.7 million, or $0.15 per share, last year. The Cash App division, Block’s successful mobile payment network and a major contributor to overall profitability, recorded $1.31 billion in gross profit, up 21% year on year. As part of its cost-cutting efforts, the company said in a shareholder letter that it was reducing its investment in Tidal, and completely shutting down TBD, its Bitcoin-focused arm.
4. Roblox Corporation (NYSE:RBLX)
ARK Investment Management’s Q3 Stake Value: $524.1 million
Number of Hedge Fund Holders: 52
Roblox Corporation (NYSE:RBLX) is a video game developer located in California, USA. With 88.9 million active users each day, 2.9 million developers, and 6 million active experiences, Roblox Corporation (NYSE:RBLX) goes beyond the standard definition of a video game by combining its digital currency and providing a wide range of unique virtual experiences.
On January 28, Piper Sandler increased its price target for Roblox Corporation (NYSE:RBLX) to $72 from $65 due to strong user engagement and bookings momentum ahead of the company’s results. Bookings are expected to be $1.41 billion in the fourth quarter, up 25% year on year and approximately 3% higher than Wall Street projections, despite management’s 20% growth guidance, which it considers unduly conservative. The firm also upgraded its full-year 2025 bookings and EBITDA projections by 1.4% and 6.3%, respectively, noting strong momentum and a predicted 1Q25 bookings range of $1.12 billion to $1.15 billion.
Roblox Corporation (NYSE:RBLX) announced impressive Q3 results on October 31, 2024. Revenue was $919 million, up 29% from the previous year and above the $860 million to $885 million projection set at the end of Q2. In addition, virtual currency sales were estimated to have reached $1.13 billion, above predictions of $1 billion to $1.025 billion.
SaltLight Capital stated the following regarding Roblox Corporation (NYSE:RBLX) in its Q3 2024 investor letter:
“Roblox Corporation (NYSE:RBLX) has firmly established itself as the dominant player in user-generated gaming within Western markets. Meanwhile, Tencent has developed a similar ecosystem in China with its WeChat Mini-games platform. Owning both gives us a unique vantage point to assess the evolving landscape of user-generated gaming platforms globally.
At its recent investor day, Roblox set an ambitious target of reaching 10% of gaming content revenue, of which it estimates the total pool is around $180bn (for context, in the last twelve months, it made $4bn in bookings).
We think this will be a challenging target, but it will be positive for the business directionally. The reason is that Roblox has spent the last three years heavily investing in re-engineering its game platform to be high fidelity, performant and widely available across platforms. They also share economics with their creators to the point now that the absolute numbers in highly engaged games are enough to support a small game studio. The result is that the quality of games has materially improved, attracting additional engagement – particularly from older users…” (Click here to read the full text)
3. Coinbase Global, Inc. (NASDAQ:COIN)
ARK Investment Management’s Q3 Stake Value: $577.4 million
Number of Hedge Fund Holders: 42
Coinbase Global, Inc. (NASDAQ:COIN) serves the global cryptocurrency market as a financial infrastructure and technology provider. Its products include a consumer financial platform, a marketplace that helps organizations and institutions deal in bitcoin assets, and tech solutions that allow developers to make cryptocurrency-based apps and securely take cryptocurrency payments.
Oppenheimer analysts reduced their price target for Coinbase Global Inc. (NASDAQ:COIN) from $358 to $334 on January 17. Despite the lower price target, the firm maintained an Outperform rating on the bitcoin exchange’s shares. The correction follows the COIN stock’s dramatic decline since late December, which Oppenheimer analysts see as a possible investment opportunity. Oppenheimer is also optimistic about a number of key expectations, including a strong fourth-quarter performance in 2024 and the possibility of raising earnings estimates in the following years. In addition, the analysts point to a pro-crypto President, administration, Congress, and SEC, which might boost Coinbase’s chances under a favorable regulatory environment.
Patient Capital Management stated the following regarding Coinbase Global, Inc. (NASDAQ:COIN) in its Q4 2024 investor letter:
“The top performers in the fourth quarter were once again Financials and Travel names. We’ve been over-indexed to them since the pandemic, which has served us well. We strategically added to certain financial names like Sofi Technologies (SOFI) and Coinbase Global, Inc. (NASDAQ:COIN) during the year. Both companies rebounded strongly in the fourth quarter. We believe Coinbase is building the platform for the crypto ecosystem. Certain recent advances (wallet, base improvements, USD Coin) could cause an adoption tipping point. We like that Coinbase continues to widen its moat by persistently investing in innovation.”
2. Roku, Inc. (NASDAQ:ROKU)
ARK Investment Management’s Q3 Stake Value: $837.8 million
Number of Hedge Fund Holders: 40
Founded in 2002, Roku, Inc. (NASDAQ:ROKU) is a publicly traded American firm that specializes in smart TVs and streaming gadgets. The company licenses its streaming technology to other manufacturers and runs an advertising campaign via its streaming network.
Roku Inc. (NASDAQ:ROKU) posted excellent fiscal third-quarter 2024 results, exceeding $1 billion in total net sales for the first time. In fiscal Q3 2024, its entire net sales were $1.06 billion, up 16% year over year. This growth was attributed to advertising and the proliferation of streaming services.
On February 3, JMP Securities upheld its Market Outperform rating and set a steady price target of $95 for Roku Inc. (NASDAQ:ROKU), highlighting the company’s ongoing supremacy as the top streaming service in the U.S. According to JMP Securities, Roku’s market position remains solid, despite minor monthly fluctuations.
1. Tesla, Inc. (NASDAQ:TSLA)
ARK Investment Management’s Q3 Stake Value: $1.2 billion
Number of Hedge Fund Holders: 99
Tesla, Inc. (NASDAQ:TSLA) is a leading manufacturer of fully electric automobiles and energy solutions. Cathie Wood labeled Tesla Inc. (NASDAQ:TSLA) as the world’s largest AI opportunity last year due to the release of its newest iteration of self-driving (FSD) technology, which the investor claims has the potential to revolutionize the company’s economics. For that very reason, ARK Invest published a report in June of 2024 that set a $2,600 price target for Tesla shares by 2029.
On January 30, Mizuho reaffirmed its Outperform rating for Tesla (NASDAQ:TSLA), reflecting its faith in the company’s standing in the market, especially as the top provider of electric vehicles in the U.S. With the Cybertruck and Optimus serving as long-term growth engines, the firm thinks Tesla is well-positioned to handle the possible loss of tax benefits and tariffs. Nevertheless, Mizuho cautions that competition in China remains a challenge for Tesla.
Tesla Inc. (NASDAQ:TSLA) reported its fourth-quarter and full-year financials for 2024, which revealed an annual revenue of $97.15 billion. Although its gross margin of 18.23% fell short of analyst forecasts, the automaker maintained strong financials with over $2 billion in free cash flow.
Aristotle Atlantic Large Cap Growth Strategy stated the following regarding Tesla, Inc. (NASDAQ:TSLA) in its Q4 2024 investor letter:
“Tesla, Inc. (NASDAQ:TSLA) detracted from performance in the fourth quarter of 2024. The stock had a strong performance in the fourth quarter, and our portfolio has an underweight position relative to the benchmark weight. Tesla reported better-than-expected third quarter earnings in late October. Given the CEO of Tesla’s position as an advisor to President-elect Trump, performance in the shares accelerated following the U.S. presidential election. There are expectations that regulation for autonomous driving will be centralized with the federal government. There have been reports in the press that tax incentives for electric vehicles will be eliminated or reduced, which could have a negative impact on Tesla’s subscale competitors.”
While we acknowledge the potential of TSLA, our conviction lies in the belief that certain AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. If you are looking for an AI stock that is more promising than TSLA but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
READ NEXT: 20 Best AI Stocks To Buy Now and Complete List of 59 AI Companies Under $2 Billion in Market Cap.
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