Cathie Wood, the co-founder and CEO of Ark Invest, is changing her portfolio approach amid the current market rally in growth stocks. Typically adding to existing stakes on dips, Wood is now unafraid to buy into the upswing. On Thursday, she made significant purchases of three stocks, boosting some of her largest positions.
First on the list is Palantir Technologies (NYSE: PLTR), whose shares hit a two-year high recently. The software developer for the intelligence community has seen an impressive quadruple increase in its stock since last year. The recent catalyst for the stock rally was the announcement of a $178.4 million contract with the U.S. Army for the development of a new ground targeting system. While some analysts have reservations about the stock’s rally, Palantir’s strong financial results and success in both the public and private sectors indicate the company’s growth potential.
Next, Wood purchased shares of Toast (NYSE: TOST), a leading cloud-based point-of-sale platform provider for restaurants. The stock hit a seven-month high following a 35% increase in revenue for the latest quarter. With 106,000 locations using its services, Toast is delivering value to shareholders with its consistent performance and growth in the market.
Lastly, Wood bought into Roku (NASDAQ: ROKU) on Thursday, despite the stock posting a 31% decline in price this year. The streaming services provider, with 80 million active accounts, faces challenges from new competitors and market trends. However, Wood remains confident in Roku’s dominant position in the industry and its potential for long-term growth.
In conclusion, Cathie Wood’s recent purchases reflect her strategy of seizing opportunities in the market rally. While some stocks may face challenges, Wood’s investment decisions are based on the long-term growth potential of these companies. Investors will be watching closely to see how these stocks perform in the coming months.
