Cathie Wood returns to the limelight: investment moves to watch
Cathie Wood, co-founder and CEO of Ark Invest, is once again attracting attention with her innovative investment style focused on growth stocks. Its largest fund has seen a 17% rise in recent weeks after an earlier decline, putting it back in the spotlight for investors.
Thanks to Ark Invest's transparency, which publishes its trading activity on a daily basis, we have an overview of the companies it is currently buying.
Three purchases in particular are interesting: Advanced Micro Devices (AMD), DraftKings and Tempus AI. Let's take a closer look at these companies.
Advanced Micro Devices $AMD
What if the world of artificial intelligence (AI) started to develop in earnest, but one of the largest chipmakers, Advanced Micro Devices, was left on the sidelines? Although AMD is losing value in 2024, the company is looking to make its mark in AI. It is expected to unveil its plans at this week's "Advancing AI 2024" event, where it will unveil a new generation of accelerators, server processors and updates that bolster its ecosystem of AI solutions.
Despite suffering a 4% drop in revenue last year, AMD is now slowly returning to growth. A key segment is the data center division, which saw a 115% increase in sales. Although other parts of the business, such as the client and gaming segments, saw declines, AMD still holds the potential for significant growth. Analysts' outlooks for next year suggest revenue growth of 28%, and while AMD is not cheap, Cathie Wood clearly sees potential in the company.
DraftKings $DKNG
The sports season in full swing is a great opportunity not only for fans, but for betting platforms as well. DraftKings, a well-known online sportsbook, saw 8.4 million unique users in the last year, a 35% increase from the previous year. Although revenue growth slowed to 26% in the most recent quarter, DraftKings surprised with earnings and attracted analyst attention. Several firms have already upgraded the company's stock, indicating growing confidence on Wall Street.
With the NFL season kicking off and the NBA about to begin, DraftKings has all the ingredients to ride the wave of sports fever and capitalize on the enthusiasm of fans willing to bet on their favorite teams.
Tempus AI $TEM
Tempus AI is a newcomer to the stock market, but Cathie Wood isn't afraid to make risky bets. Tempus, which focuses on artificial intelligence applications in healthcare, debuted on the market with a share price of $37. Since then, it has seen dramatic growth and decline. The company is already generating real revenue, which grew 25% in the first quarter after going public. While profitability is not expected until 2027, Tempus is building a strong market position with its innovative approach to healthcare technology.
Like DraftKings, Tempus AI poses significant risk, but Wood sees great potential in the company. Her strategy of investing in pioneering and technologically advanced companies may pay off in the case of Tempus.
Disclaimer: There is plenty of inspiration to be found on Bulios, but stock selection and portfolio construction is up to you, so always conduct thorough self-analysis.
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