Three Hot Stocks That Cathie Wood Purchased Week Ago

Kathie Wood was busy last week. Ark Invest's CEO, co-founder, and principal stock picker made many portfolio adjustments. Ark's portfolio transactions are published daily, giving investors refreshing transparency into the popular money manager.

Now what is Wood adding to her portfolios? She increased her investments in UiPath, The Trade Desk, and Nu last week. She sees what in these three equities that have surged over 70% since last year? Let's examine.

UiPath The workplace robotics debate continues to grow. Labor costs rise. Global staffing constraints during the pandemic prompted automation's efficiency and reliability. As a leader in cloud-first robotics and automation software, UiPath has two beginnings.

UiPath is a broken IPO, trading for below half of its $56 IPO price three years ago. Now, momentum is positive. Since bottoming 14 months ago, the stock has >doubled. After a financial report, Wood bought three ETF stocks on Thursday after lightening her holdings in two others earlier in the week.

On Wednesday afternoon, UiPath reported record fiscal fourth-quarter results. Revenue exceeded expectations by 31%. UiPath earned its first quarterly profit as a public company in fiscal 2024, and its adjusted operating margin expanded significantly. After the report, the stock rose, but then fell 7% on Thursday. Despite declines, Wood bought. After its last quarterly statement, shareholders saw a 27% share price increase.

UiPath remains appealing. Revenue growth accelerated in fiscal 2024 after two years of significant decline. Revenue grew faster in all four fiscal quarters. UiPath's dollar-based net retention rate is 119%, meaning returning customers spend 19% more than a year ago. Customers innovate on the platform. Larger customers boost its annualized renewal run rate. Growth investors are excited by UiPath's leadership in robotics and automation using AI.

Although advertising may not be a growing business, The Trade Desk's leadership in programmatic advertising remains resilient. In a volatile industry, The Trade Desk has achieved eight years of double-digit sales growth.

Last month, the adtech giant's shares rose 17% after reporting strong financial results. Market expectations were exceeded by 23% revenue growth. The Trade Desk missed the bottom line but gave investors confidence in the stock. In the current quarter, The Trade Desk's top line increased 25% year-over-year, indicating acceleration.

Nu The hottest of these three stocks is Nu. Latin America's Nubank parent business has nearly tripled since last year. In 11 years, Nubank didn't exist, yet now over half of Brazil uses the bankless fintech fast.

Revenue climbed 57% and adjusted net income tripled in its latest quarter. If you dislike "adjusted" earnings, I buried the lede. Net income became approximately sixfold. Despite rapid development, Nu has posted six consecutive profitable quarters. UiPath, The Trade Desk, and Nu were Wood's top growth picks last week. Check out her purchases this week.

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