3 Stocks She Just Bought

Cathie Wood got back on track last year. The CEO and stock picker of Ark Invest’s aggressive growth exchange-traded funds (ETFs) trounced the market in 2023 after fading awfully in back-to-back years.

She publishes the daily transactions across her ETFs, so what’s she buying these days? Wood added to her existing positions in Tesla (NASDAQ: TSLA), Ark 21Shares Bitcoin ETF (NYSEMKT: ARKB), and Cerus (NASDAQ: CERS) on Thursday. Let’s look at a closer look at the stocks she is buying.

Tesla

Wood doesn’t hesitate in adding to some of her positions when they fall out of favor, and that was the case on Thursday for Tesla. Shares of the leading maker of electric cars shifted into reverse for a 12% drop after the company posted disappointing financial results. Wood took advantage of the sale to add to her top holdings.

Tesla posted an adjusted profit of $0.71 a share on $25.2 billion in revenue for the holiday quarter, falling short of analyst estimates on both ends of the income statement. Revenue growth has decelerated sharply in four of the past five quarters, including the less than 4% year-over-year increase in its latest report.

Image source: Getty Images.

Tesla has been lowering prices on its cars since late 2022 in its two largest markets. The cuts have been necessary to expand its reach and hit production targets, but margins understandably contracted in 2023. Tesla is bracing investors to expect “notably lower” vehicle volume growth in 2024, but it sees healthy growth potential for its energy storage business. It’s a lull before the next major rollout of a next-gen compact vehicle expected next year.

The automaker remains the undisputed leader in this growing market, but the stock’s historically lofty valuation is tricky to justify when growth stalls. It was Wood’s largest holding just a couple of months ago, but the stock’s slide — down nearly 40% since its summertime peak — finds it now clocking in as her fourth largest position.

Story continues