Mike Sakuraba graduated with double major of English and Economics. Part time writer, part time investor, full time dad. Mike loves writing about technology, sports, and investing.

2024-03-23 12:10

2 Stocks Cathie Wood Keeps Buying That You Should Too

When Ark burst onto the scene a few years ago during the pandemic, Cathie Wood was praised as a master stockpicker and people piled into her funds. Today, most of her funds are deep under water relative to their all-time highs, and Wood’s reputation has certainly taken a hit.

Do you still believe she’s a fund manager worthy of your investment? People will allude to her selling NVIDIA ($877.35|6.18%) before its big rally or focussing on stocks like Roku (NASDAQ: ROKU) and Teladoc (NYSE: TDOC). Hey, we’ve all made mistakes when investing but then again, we aren’t managing billions of dollars of investor assets. Wood’s stock picks are heavily scrutinized and have received less publicity as of late. Whether you like Ark or not, here are 2 stocks they keep buying that you should too.

Meta Platforms (NASDAQ: META)

Now this seems like an aggressive countertrade. Cathie Wood has been scooping up shares of Meta as the stock trades at all-time highs. Ark was a major investor in Meta back when it was Facebook in 2021. Then, in June 2023, Wood began to accumulate shares again and it became a major part of her Ark portfolio. Now, with Meta trading at all-time highs, Wood continues to add to her position as a core holding.

So why should you think about buying Meta? The company is performing better than it ever has and CEO Mark Zuckerberg has truly improved the efficiency of its operations. With ad spend seemingly on the rise again an election year that will be all over the media, Meta should be one of the primary beneficiaries. On top of that, there is a push from within the government to ban TikTok in the United States which would also greatly benefit Meta and its shareholders. With a quarterly dividend now in place and a potential stock split in the future, it is easy to see why Cathie keeps adding this incredible stock to her funds.

SoFi Technologies (NASDAQ: SOFI)

SoFi is a favourite on FinTwit and for Cathie Wood as well. She’s amassed several million shares and it has become a core holding in a couple of different Ark funds. It’s noticeably cheap right now from a stock price point of view and has failed to rally alongside the broader markets. It has even been left behind by its fintech peers like Robinhood (NASDAQ: HOOD) and PayPal (NASDAQ: PYPL).

So what does Cathie Wood see in SoFi? Probably the same thing that most financial influencers do. It’s an easy company to root for as it tries to disrupt the traditional financial system. SoFi has a partnership with NVIDIA ($877.35|6.18%) that allows for the chip-maker’s employees to get special rates for mortgages and loans through SoFi. In fact, SoFi works with every Magnificient 7 company except for Amazon (NASDAQ: AMZN). While that alone is not enough to buy SoFi’s stock, it does show that even the largest companies are recognizing SoFi as a viable alternative to the big banks. SoFi has its own fintech platform as well in Galileo that other sites and brokerages can leverage. SoFi is allegedly working with a top 6 American bank to re-do their online banking platform.

SoFi is a popular stock and even Wood is taking notice. Will she be right like she was with Tesla ($168.29|-1.11%) or Coinbase ($236.32|5.68%)? Time will tell.