Cathie Wood, renowned for her investment prowess, has made strategic moves amid a volatile stock market. Despite flat major market averages, Wood, the co-founder and CEO of Ark Invest, took advantage of the wild swings in stock prices by acquiring shares in Amazon, Roku, and Guardant Health.
Amazon: A Strategic Expansion
Wood has increased her stake in Amazon through five of the six Ark Invest growth stock ETFs. Recently, Amazon's stock experienced a nearly 10% drop following disappointing second-quarter results. However, the stock has shown signs of recovery over the last few trading days. Amazon’s collaboration with TikTok allows influencers to promote products seamlessly, potentially boosting sales. Although Amazon's second-quarter revenue increased by just 10%, which was below expectations, its earnings per share doubled, surpassing profit forecasts. Significantly, Amazon Web Services (AWS) accounted for 89% of the company's operating profit, indicating its crucial role in Amazon's financial health. The current stock price is approximately 10% below its position six days ago and 17% off its all-time high from last month.
Roku: Streaming Growth Amidst Decline
Roku’s stock took a hit after its financial announcement, yet it managed to surpass market expectations with its guidance. Roku has consistently reported double-digit revenue growth over the last five quarters, with active streaming households reaching 83.6 million, marking a 14% increase year-over-year. Additionally, Roku has seen a 20% surge in streaming hours. Despite ongoing losses, Roku's free cash flow is into the nine-figure range, highlighting the company's expanding influence in the streaming market. Notably, the Roku Channel experienced a 75% growth in streaming over the past year, showcasing its growing appeal.
Guardant Health: Long-Term Potential
Guardant Health shares fell by 4% last Friday, despite delivering robust financial results earlier in the week that exceeded expectations on both the top and bottom lines. The company has raised its full-year revenue guidance, reflecting confidence in its growth trajectory. Although currently offering a limited range of products, Guardant Health has a promising pipeline, particularly with the upcoming FDA approval of the Shield colorectal cancer screening tool. Its current offering, Guardant360, is already available in the market. While profitability is not anticipated until 2028, Guardant Health’s revenue is expected to triple, reaching $2 billion, suggesting substantial growth potential for patient investors.
Investors looking for long-term growth opportunities may find Wood's recent acquisitions in Amazon, Roku, and Guardant Health particularly interesting, as these companies navigate their respective challenges and growth paths.
