Investing with Cathie Wood: Empowering Female Investors Through Innovation
The ARK Innovation ETF (ARKK), the premier exchange-traded fund of ARK Investment Management, soared approximately 70% in 2023. This surge marked the third-highest annual gain for the fund since its establishment in 2014.Since last October, despite experiencing some volatility, ARK Innovation has seen an overall increase of around 29%.
Cathie Wood's investment principles are redefining the investment landscape. In the realm of investing, she is notable for her strong emphasis on radical innovation. Here are Cathie Wood's investment principles.
● Focus on Disruptive Innovation
At the heart of Wood's approach is the identification of companies at the forefront of groundbreaking technologies poised to upend traditional industries.
● Long-Term Outlook
Champions an investment strategy spanning at least five years, stressing the importance of patience to bring disruptive innovation to fruition.
● Active Portfolio Management
Conducts thorough research to selectively choose companies for investment, eschewing passive index tracking in favor of crafting a portfolio that reflects her strategic foresight.
● Focus on Growth Potential
Emphasizes investing in companies that show strong growth prospects regardless of their premium valuations, seeking considerable price gains and sustained outperformance in the market.
● Alternative Viewpoints
Boldly embraces nonconformist stances, putting capital into businesses that may currently be out of favor in the market, weighing the possibility of significant returns against risk.
● Optimistic and Forward-Thinking Approach
Wood holds a positive view of what lies ahead, firmly believing in technology's capacity to revolutionize the world. This conviction fuels her dedication to pioneering innovation and underpins her long-term, affirmative investment philosophy.
Here are stocks with a large trading volume or a substantial holding in ARKK.
Coinbase
$Coinbase (COIN.US)$ reported a strong quarter with a net income of $273 million, turning around from a net loss of $557 million in the previous year's quarter. Revenue climbed to $954 million from $629 million. The company's robust performance is supported by rising cryptocurrency prices, particularly Bitcoin, which neared its all-time high on Feb 26 amid positive sentiment following the SEC's approval of the Bitcoin spot ETF and anticipation of the bullish "halving" event.
Zoom
$Zoom Video Communications (ZM.US)$ delivered positive quarterly results on Feb 26, with a net income of $298.8 million, recovering from a net loss of $104.1 million in the same quarter last year. Despite competition from major players like Cisco, Alphabet, and Microsoft, the videoconferencing firm has made a notable comeback by growing its enterprise customer base. Although it has moved beyond its pandemic peak, Zoom is poised for future success thanks to its efforts to address privacy issues and the ongoing trend of remote work.
Block
$Block (SQ.US)$, holding the third-largest stake in ARKK's portfolio at approximately 7%, has enjoyed a 74% surge in its share price since last October. The stock is attractively priced, trading at less than twice its sales – a valuation not observed since 2016, suggesting that it is at a historically low level. On Feb 22, Block reported its Q4 2023 earnings, revealing a 24% jump in revenue to $5.77 billion. Even when Bitcoin-related revenue is removed, the figure remains robust at $3.25 billion, representing a 15% year-over-year increase.
UiPath
Cathie Wood's ARKK holds a significant stake in $UiPath (PATH.US)$, with the AI company making up about 6% of the fund at $473.3 billion in stock value. UiPath is also included in all six of Ark Invest's active ETFs. Wood's interest in UiPath may be influenced by its leading 36% share in the robotic process automation market, outpacing competitors such as Microsoft, SAP, Salesforce, and IBM. Despite a less solid balance sheet and trading at valuation multiples down around 68% from its IPO, UiPath's market position continues to attract investment interest.
Sources: moomoo, Yahoo Finance, Mint, The Street
Disclaimer: Moomoo Technologies Inc. is providing this content for information and educational use only.
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