Cathie Wood has cemented her reputation as one of the most prolific investors of our time. Her knack for picking up explosive stocks early on has established her position as an investing juggernaut. Therefore, savvy investors will always keep the best Cathie Wood stocks on their radar.
As the CEO of her investment firm, ARK Investment Management, Wood has led her clients to superb gains over the past few years. 2023, in particular, was a stand-out year for the company, but 2024 has been somewhat muted. Nevertheless, the wisdom in following her lead remains as compelling as ever.
With multiple rate cuts on the horizon, investors should consider taking on more risk and buying these three top Cathie Wood stocks. Each showcases robust long-term upside potential, setting the stage for sustained growth ahead.
Palantir (PLTR)
Big data giant Palantir (NYSE:PLTR) was one of the stocks Wood loaded up on during the first quarter (Q1). After the investment firm raised its stake by 16.5% in Q1, it now forms 2.8% of ARK’s portfolio, which isn’t hard to gauge why.
Lately, the bull-case surrounding Palantir has mostly been about its success beyond government contracts. In Q1 alone, it posted a whopping 69% surge in U.S. commercial clients, with total deal value growing 74% year-over-year (YOY). This impressive pivot has allowed the firm to expand its client base and effectively mitigate risks related to limited government contracts.
Furthermore, its Artificial Intelligence Platform (AIP) has emerged as a massive success story, key in securing multiple new deals. Dan Ives from Wedbush Securities talked about Palantir’s success in monetizing AI. Additionally, its intensive focus on boot camps, with over 1,300 completed, underscores its robust growth strategy.
Meta Platforms (META)
Meta Platforms (NASDAQ:META) lit up the stock market last year, posting over 50% gain. Unsurprisingly, ARK Invest raised its stake in META stock by an eye-catching 41% during Q1.
However, given its superb run-up last year, the big question is whether Meta can continue pushing on from current levels. The answer appears to be a resounding yes, making META a compelling buy.
Meta benefitted immensely from last year’s AI-fueled rally, but unlike most tech stocks, it’s delivering concrete outcomes from its AI initiatives. Notably, the effects of AI on its massive ‘Family of Apps’ have Wall Street buzzing over its future. Meta is effectively leveraging the network effect of its robust ecosystem to improve customer experience and create significant new growth avenues.
AI is expected to be a major growth driver for the company, and the firm is expected to spend between $35 billion and $40 billion this year to maintain its competitive edge. Despite the stock’s recent dip, it remains well-positioned for long-term expansion, backed by a strong earnings track record.
Block (SQ)
Block (NYSE:SQ) represents a unique investment opportunity, skillfully merging the dynamic worlds of fintech and cryptocurrency. It’s currently the fourth-largest holding in the ARKK portfolio, forming roughly 5.2% of the firm’s total investments.
Block has recently been in the news for its massive investments in the crypto realm. The firm has invested $220 million in Bitcoin (BTC-USD), soaring 160% to $573 million. Meanwhile, its popular Cash App continues to thrive, generating an impressive $1.26 billion in gross profit in Q1, marking a superb 25% increase year over year. This growth is underscored by a powerful 24 million monthly active user base, demonstrating its appeal among small businesses.
However, the integration of Afterpay, its buy-now-pay-later firm, hasn’t gone exactly as planned. Despite initial struggles and losses post-acquisition, its management remains upbeat over a potential turnaround. Hence, there’s plenty to like about Block stock, especially at current prices.
On the date of publication, Muslim Farooque did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
On the date of publication, the responsible editor did not have (either directly or indirectly) any positions in the securities mentioned in this article.