Cathie Wood Buying the Dip: She Just Bought 3 Stocks

As co-founder and CEO of Ark Invest, the market rally in growth stocks is changing the way Cathie Wood approaches portfolio movement. She has been buying existing shares on dips for much of the past few years. Now she doesn’t do that anymore. Fear of buying on a rise.

Wood bought shares Palantir Technology (NYSE:PLTR), toast (NYSE:TOST)and Roku (NASDAQ:ROKU) On Thursday, some of the largest positions were taken. Roku has been falling recently, but Palantir and Toast hit new near-term highs on Thursday. Let’s take a closer look at these three purchases.

1. Palantir

Palantir shares hit another two-year high on Thursday. Shares of the intelligence community software developer have more than quadrupled since the start of last year.

The main catalyst for gains this week is the announcement Contracts worth $178.4 million awarded Develop and deliver a new ground targeting system to the U.S. Army. Palantir has been developing software for the military and other government contractors for years, so it’s not surprising to see it pull off another big feat here. However, it has also been a major success recently in the private sector.

Miniature bull and bear statues are placed on sheets of paper displaying stock and financial information.

Image source: Getty Images.

Not all Wall Street pros are selling on the stock’s gains this week. Mizuho Analyst Gregg Moskowitz raised his price target to $21 from $18, but he has a neutral rating on the stock. Palantir stock is trading well above his new price target. Earlier this week, RBC stuck to its street-low price target of $5, arguing that a new Army TITAN deal could be baked into the Palantir outlook.

Palantir is one of the few stocks that has seen its share price rise since being hailed as a stock. AI (ARTIFICIAL INTELLIGENCE). This isn’t just hype. Palantir did post better-than-expected financial results last month, with adjusted profit of $0.08 per share and revenue up 20%. Palantir has had its ups and downs, but the stock is now more than double its 2020 IPO price of $10.


Toast shares hit a seven-month high on Thursday. If you dine at a restaurant or order takeout, you’re likely familiar with Toast. It is the leading provider of cloud-based point-of-sale platforms for restaurants. Currently, 106,000 locations use its Toast-branded equipment to accept orders and settle transactions.

Three weeks ago, the company impressed investors with revenue growth of 35% in its most recent quarter. The 32% increase in total payments failed to keep pace with last year’s 34% increase across regions, but Toast warned in its last quarter that transaction volume per restaurant was trending downward during the holiday quarter.

The stock is up 36% so far in 2024, well ahead of the overall market’s 8% gain. That’s not Palantir’s 54% year-to-date performance, but Toast has certainly been rewarding shareholders lately.

3. Roku

Palantir and Toast are the market winners so far this year. Not so with Roku, whose price will drop 31% in 2024. Last month’s poor quarterly report and the threat of new competitors have the stock more than doubling in 2023.

Roku is more of a complement to the old-school Wood than Palantir or Toast. It’s a top holding – currently her fifth-largest across all Ark Invest portfolios – and it’s declining. She wants Roku to dominate a growing market. A niche with 80 million active accounts, enough to make this deal pay off over time.

Roku’s mid-February financial update showed healthy double-digit revenue growth. Encouraging double-digit percentage improvements were also achieved in cutting operating costs and bottom-line losses. However, the stunning sequential declines in average revenue per user are unsettling for those bulls. They’ll be keeping an eye on Roku’s next quarterly update, and when you’re Roku, you don’t mind building an audience.

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Rick Munariz Holds positions in Roku and Toast. The Motley Fool has positions and recommendations at Palantir Technologies, Roku, and Toast. Motley Fool at disclosure policy.

Cathie Wood Buying the Dip: She Just Bought 3 Stocks Originally published by The Motley Fool

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