These Cathie Wood stocks to buy can make investing much easier. Though her investment funds aren’t generating the stellar returns as they did before the 2022 tech pullback, her knack for identifying groundbreaking opportunities in tech remains unchallenged. Hence, wagering on the top Cathie Wood stocks to buy remains perennially relevant.
Cathie Wood’s strategy of focusing on disruptive innovation is one that’s expected to yield tremendous long-term returns. She embodies themes of technological advancement, an approach that’s paid many dividends in the AI-led stock market surge. Moreover, with the likely pullback in interest rates over the next few months, Cathie Wood’s forward-thinking investing strategy could potentially take your portfolio to new heights. Without further ado, here are three Cathie Wood stocks you should consider investing in at this time.
Cathie Wood Stocks to Buy: Meta Platforms (META)
Social media giant Meta Platforms (NASDAQ:META) had quite the comeback last year. It was only a couple of years back when it endured the most substantial market value loss in the stock market’s history. However, it completely flipped the script last year, adding $197 billion to its market value, again the biggest in the stock market’s history. Its blow-out quarterly performances, AI and VR investments, and exceptional shareholder rewards set the stage for robust long-term expansion.
Wood holds a small stake in META as it will likely lead the metaverse, AI, and VR realms. In particular, AI has been a major theme for Meta in the past year, as it looks to unveil its generative AI model Llama 3. The Llama 3 is poised to rival Gemini and ChatGPT and will likely play a major role across its entire software stack. Moreover, it has invested roughly $50 billion in advancing its metaverse endeavors and still has plenty in the tank to continue being a needle-mover in the sector.
With so much going on for the company at this time, Cathie Wood increased her stake in the company by 7.80% during the fourth-quarter (Q4), adding 22,400 shares.
Palantir Technologies (PLTR)
Palantir Technologies (NYSE:PLTR) is one of the biggest players in the fast-evolving big data analytics market. Its stock forms roughly 1.6% of Cathie Wood’s portfolio, reaching 10.9 million shares. Moreover, she added 1.50 million new shares of PLTR stock in Q4. She also lauded the company for its AI-driven potential and the recent shift to profitability.
Palantir’s robust performances and customer growth each quarter continue to prove the naysayers wrong. It was criticized for being too reliant on government contracts, but in recent quarters, the company has seen its commercial clients outpace this segment. Moreover, expanding its customer base indicates its superior execution and ability to attract big-ticket clients.
Its U.S. business clients during Q4 shot up to 221, marking an eye-catching 55% on a year-over-year (YOY) basis. Also, its U.S. commercial business’s total contract value (TCV) jumped 107% YOY to a whopping $343 million, which points to its success in securing larger contracts.
Unity Software (U)
Game development platform Unity Software (NASDAQ:U) is an odd pick at this time. Its stock has dropped 36% year-to-date (YTD) due to rising competition, declining profitability, and a sales slowdown. Nevertheless, Cathie Wood added 713,000 new shares in U stock during Q4. This was after offloading 813,000 shares in the previous two quarters.
Though the concerns are genuine with Unity, it’s tough to overlook its massive potential based on the array of use cases in emerging technologies. With stakes in AI, blockchain, metaverse, and other transformative technologies, it is positioned for remarkable long-term growth.
Furthermore, it is looking to restructure, including a 25% reduction in workforce, while pursuing high-value, profitable sectors. This includes advertising, XR headsets, and automotive applications. Also, its AI-focused Unity Muse could be another growth catalyst for the firm. It enables creators to take on some of the most ambitious projects efficiently. Hence, expanding into non-gaming sectors could unlock significant long-term value for its business.
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.