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Benzinga

Cathie Wood is responsible for these four technological actions in 2021

Cathie Wood, the founder of ARK Invest, is taking Wall Street by storm with her unconventional thematic investing. Namely, she follows an innovative fund style to find hyper-growth stocks with breakthrough technology. Certainly, his unique method works. To be sure, five of the six ARK ETFs posted returns of over 100% last year alone. Result? Its funds saw a massive inflow of $ 20.6 billion, according to data from Morningstar, Portfolio Insider and Nasdaq. Recently, Wall Street has seen a strong turnover in value stocks. But don’t count Cathie Wood among them. Instead, it is doubling down on its bets on these innovative companies. “Benchmarks are filling up with value traps” because of the pace of innovation in areas such as artificial intelligence and robotics, Wood said. “We think the big risk is in benchmarks, not in what we do.” Billionaire Cathie Wood’s predictions are inescapable due to her historic returns over the past three years – with her picks many times above their initial stock price. Case in point: Last year Ms Wood’s ARK Genomic Revolution ETF, ARK Innovation ETF and ARK Next Generation Internet ETF posted returns of 159%, 203% and 157%, respectively. Now here are four tech stocks with huge potential that Cathie Wood bought for her funds: 1. Coinbase (NASDAQ: COIN) Surely Cathie Wood is bullish on cryptocurrency. She bought hand in hand in the largest cryptocurrency exchange and digital wallet service provider Coinbase. On the day Coinbase made its public debut, ARK Invest took in 749,205 shares. A few days later, he added an additional 340,273 shares (worth nearly $ 112,970,000 million) to his position. Never afraid to make bold predictions, Wood believes that digital wallets may become the most valuable technology of this era, underscoring its unprecedented rate of organic growth. “Digital wallets could become the most valuable technological developments per user of almost anything. We’re very excited about it. If you were to draw a graph like we did in our Big Ideas showing how JPMorgan Chase & Co. ( NYSE: JPM) got to those levels, it was acquisition after acquisition, as Cash App and Venmo, because they’re viral in nature, got there organically, ”said Cathie Wood. Recent events supported Wood’s prediction. Digital wallet payments overtook the physical card for use in in-store and point-of-sale (POS) contactless payments in 2020, according to the Global Payments Report. in-store cash fell at least 50% in advanced economies in 2020. 2. Unity Software (NYSE: U) Real-time 3D development platform Unity Software is trading cheaply, according to Ca thie Wood. It has increased its stake in Unity Software over the past two months, as the stock has fallen 34% since the start of the year. Despite the recent sell-off, the company’s future fundamentals look strong based on revenue growth projections. Unity Software predicts 2021 revenue of between $ 950 and $ 970 million, in line with the company’s plan to maintain 30% revenue growth over the long term. Unity CEO John Riccitiello said: “As a leader in creating and operating tools for the world of real-time 3D content, we continue to invest with the intention of seizing this which we believe to be a substantial opportunity to come in 2021 and the years beyond. ” 3. Shopify (NYSE: SHOP) Wood believes that Shopify may one day be as big as online retail giant Amazon (NASDAQ: AMZN). As a result, Cathie Wood saw the drop in Shopify stock as a buying opportunity. His company added to its existing stake in the e-commerce platform last week, according to Portfolio Insider. “We’re trying to figure out how Amazon is going to handle this notion of people seeing something on Instagram or somewhere else on Facebook or Twitter, or on Snap and just buying there,” Wood said. “This is a Shopify enabled business opportunity and we think it’s going to be important.” Recently, Shopify’s stock price fell slightly from its recent all-time high of $ 1,500 which it reached in early February. Regardless of short-term price movements, the rise in SHOP’s share price will likely be closely tied to its growth trends. So far, everything is fine: Shopify’s fourth quarter revenue has jumped 94% while 2020 revenue has jumped 86%. 4. Sea Limited (NYSE: SE) Cathie Wood also shopped with Sea Limited this year. The biggest appeal of Sea Limited is how they can integrate dozens of their businesses with each other. Sea Limited has tentacles in e-sports, mobile games, e-commerce, digital payments, and food delivery services. And the company is aggressively expanding its market penetration outside of its home country into China, particularly Latin America and Southeast Asia. These segments generated triple-digit revenue growth for Sea Limited. As a result, its consolidated revenue grew by over 100% in 2020, and it plans to continue this momentum through 2021. Cathie Wood first initiated a position in Sea Limited in the last quarter of 2019 , and she just kept adding her overtime participation. See more from BenzingaClick here for Benzinga options trading 84% of Warren Buffett’s portfolio in 2021 is in these 3 categories © 2021 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.



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