Cathie Wood follows the old advice about not putting all of your eggs in one basket. Her various Ark Invest funds together hold positions in more than 120 stocks.
However, the famous investor isn’t quite as diversified as you might think. Wood has 37% of her Ark Invest portfolio invested in these seven stocks.
1. Coinbase Global
Wood’s top holding right now is Coinbase Global (NASDAQ: COIN). The cryptocurrency exchange operator’s shares make up nearly 6.9% of her overall Ark Invest portfolio.
Last year, Wood reiterated her prediction that the price of Bitcoin would eventually hit $1 million. If she’s right, Coinbase should have tremendous growth prospects ahead. However, Wood has sold millions of shares of Coinbase in recent months.
2. Tesla
It’s probably not surprising that Tesla (NASDAQ: TSLA) ranks high among Wood’s holdings. The electric vehicle (EV) maker is currently her second biggest position, comprising 6% of her overall Ark Invest portfolio.
Wood has been a vocal Tesla bull for a long time. In 2023, she claimed that the company “is the biggest AI opportunity in the world.” Ark Invest released a report last year that predicted Tesla’s share price could reach $2,000 by 2027 — more than 10 times its current price.
3. Roku
Roku (NASDAQ: ROKU) is the third largest holding for Ark Invest, making up 5.8% of its portfolio. It claims this high spot despite Wood selling the streaming service stock in recent months.
Is Wood backing off her enthusiasm about Roku? Probably not. Ark Invest’s selling could have been motivated by a desire to take some profits off the table and/or rebalance its portfolio a bit.
4. UiPath
Aside from Tesla, there’s perhaps no AI stock that Wood is more bullish about these days than UiPath (NYSE: PATH). The company is a leader in developing robotic process automation (RPA) software. It represents a little over 5.6% of Ark Invest’s portfolio right now.
Ark Invest views UiPath as part of “AI’s sleeper wave.” The stock doesn’t get as much attention from investors as the mega-cap “Magnificent Seven” stocks. However, Wood and her Ark Invest team think UiPath’s RPA technology will make significant inroads with large enterprises across the world over the coming years.
5. Block
Block (NYSE: SQ), formerly known as Square, is the top fintech stock that Wood owns. It makes up nearly 5.2% of Ark Invest’s total portfolio.
Ark Invest has trimmed its position in Block somewhat since late 2023. Wood, though, continues to believe that the company can disrupt the banking industry over the long term.
6. CRISPR Therapeutics
CRISPR Therapeutics (NASDAQ: CRSP) is the only biotech stock to make Wood’s top seven. Nearly 3.9% of Ark Invest’s portfolio is invested in the gene-editing pioneer.
Thanks to recent regulatory approvals for Casgevy in treating sickle-cell disease and transfusion-dependent beta-thalassemia, CRISPR Therapeutics now has its first product on the market. Wood no doubt also has great expectations for the company’s gene-editing programs targeting other diseases, especially cancer.
7. Zoom Video Communications
An additional 3.7% or so of Ark Invest’s money is invested in Zoom Video Communications (NASDAQ: ZM). The stock skyrocketed during the COVID-19 pandemic lockdowns. Wood’s timing wasn’t great, however: She initiated a stake in Zoom in the fourth quarter of 2020 near its peak level. Since then, the stock has plunged.
You can’t say that Wood is a fair-weather fan of Zoom, though. She bought additional shares of the video communications company in the fourth quarter of 2023.
The best of the bunch
Which of these top stocks owned by Cathie Wood are the best of the bunch? I’d go with Block.
In a market dominated by stocks with sky-high valuations, Block looks attractively valued to me with its price-to-earnings-to-growth (PEG) ratio of 0.86. I think that the company’s two core platforms — Square and Cash App — should have huge growth prospects.
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Keith Speights has positions in Block. The Motley Fool has positions in and recommends Bitcoin, Block, CRISPR Therapeutics, Coinbase Global, Roku, Tesla, UiPath, and Zoom Video Communications. The Motley Fool has a disclosure policy.
Cathie Wood Has 37% of Her Ark Invest Portfolio Invested in These 7 Stocks was originally published by The Motley Fool