2025 kicked off with a bang for Cathie Wood and Ark Invest, as they made some strategic moves early in the year. Wood, the co-founder, CEO, and primary stock picker for Ark Invest, had a slow start in 2024 but saw her investments rally in the second half of the year. Now, she’s looking to stay ahead of the market with savvy investments at the beginning of 2025.
Let’s delve into Ark’s latest purchases, which include the following stocks: Amazon (NASDAQ: AMZN), GitLab (NASDAQ: GTLB), and Pacific Biosciences of California (NASDAQ: PACB). Each of these companies presents unique opportunities in their respective industries, making them intriguing picks for Wood and her team.
Amazon: A High-Flyer with More Room to Soar
- Despite hitting an all-time high last month, Amazon’s stock still has room to grow. Analysts like Scott Devitt at Wedbush have raised their price targets on the e-tailer, citing its strong potential for the new year. Devitt forecasts a 24% jump in operating profit at Amazon, outpacing some of its peers in the market.
- While Amazon’s net sales growth may appear modest, the company’s widening margins and strong momentum in its Amazon Web Services (AWS) cloud-hosting business continue to impress analysts. Expectations for Amazon’s performance in 2025 are optimistic, with bullish catalysts on the horizon.
GitLab: Bouncing Back Strong
- Despite a decline in the stock price in 2024, GitLab has been gaining momentum. After posting better-than-expected financial results, the cloud-based software development tools provider garnered positive attention. At least 16 analysts raised their price targets on GitLab, following a solid performance in the fiscal third quarter of 2024.
- The appointment of a new CEO, Bill Staples, signals a fresh start for GitLab as it looks to maintain its upward trajectory. With revenue growth exceeding expectations and earnings consistently beating estimates, GitLab is well-positioned for success in 2025.
Pacific Biosciences of California: A Risky Bet with High Potential
- Despite a rocky year that saw its shares plummet by 81%, Pacific Biosciences of California remains a focus for Cathie Wood. As a leader in long-read gene sequencing, the company has long-term potential to drive medical advancements.
- While revenue growth turned negative in 2024, there are signs of a turnaround in 2025. Wood’s belief in the company’s future prospects underscores her confidence in its ability to rebound and deliver growth in the coming year.
As investors consider these stocks, it’s essential to remember that opportunities abound beyond the obvious choices. The Motley Fool Stock Advisor analyst team has identified 10 stocks they believe could offer significant returns in the future. By diversifying your portfolio and staying informed on market trends, you can position yourself for success in the ever-evolving world of investing.
In conclusion, as Cathie Wood continues to navigate the volatile market landscape, her strategic moves at the beginning of 2025 demonstrate her commitment to finding value in overlooked opportunities. By exploring investments beyond the mainstream picks, investors can uncover hidden gems that have the potential to yield substantial returns in the long run.
Leave feedback about this