Cathie Wood’s exchange-traded funds have not done well over time. The flagship ARK Innovation Fund (ARKK) has continued to underperform the broad market in the past few years as some of its prominent stocks crashed. Still, her portfolio has some good quality companies.
Top Cathie Wood stocks to buy
Some of the best Cathie Woods stocks to buy and hold are Robinhood, Palantir Technologies, SoFi, Shopify, and Archer Aviation.
Robinhood (HOOD)
Robinhood is a top disruptor in the financial services industry. It introduced the concept of commission-free trading and, most recently, 24-hour trading. The firm also announced a decision to acquire Bitstamp, a leading player in the crypto exchange industry.
Robinhood stock has done well over the years. It has surged by over 350% in the last 12 months, a trend that may continue in the coming years as demand for its services rise. Also, the Trump administration will likely help it to maintain its business model of making money from market makers.
Robinhood’s annual revenue is expected to be $2.83 billion, a 51% increase from 2023. Its 2025 revenue will be $3.32 billion, while its earnings per share (EPS) will grow from $1.27 in 2024 to $1.44. Most analysts have a bullish view of the stock.
Read more: Robinhood stock price has a 42% upside but faces key risks
Palantir Technologies (PLTR)
Palantir Technologies is another top Cathie Wood stock to buy and hold. It is a technology company offering software solutions to companies and the government. Most recently, its business has become a leading player in the artificial intelligence industry, which has helped its stock to jump by 337% in the last 12 months.
Palantir’s business has continued growing, with most of this performance coming from corporate clients instead of the government. Analysts predict that its annual revenue will grow to $2.8 billion in 2024 followed by $3.50 billion in 2025. The company has also become highly profitable.
Palantir stock has two potential risks. First, there are signs that it is highly overvalued, with the current stock of $77 being higher than the average analyst estimate of $45. Second, there is a risk that AI stocks will reverse as the industry growth fades.
Read more: Is there a good reason to buy Cathie Wood’s ARKK ETF?
SoFi (SOFI)
SoFi is another top Cathie Wood stock to consider. It is a leading company that has become a popular name in the financial services industry. It has received a banking license, which helps it to offer numerous services like loans, insurance, and investment solutions.
SoFi’s business has done well over the years as its annual revenue has grown from $442 million in 2019 to $2.06 billion last year. It has also started to make a profit, with the annual earnings per share (EPS) expected to move to 12 cents in 2024 and 25 cents in 2025.
Read more: SoFi stock hits new high of $14.42: is it time to take profits?
Shopify (SHOP)
Shopify is another top Cathie Wood stock because of its strong performance and market share. It has grown to become the biggest provider of e-commerce technology solutions globally.
Shopify makes money through subscriptions from many stores it hosts. It also makes cash through card rates, shipping rates, advertising, and tax issues.
Shopify’s business has grown as its revenue jumped from $1.57 billion to $1.57 billion to $7 billion in 2023. Analysts expect that its 2024 revenue will be $8.8 billion, followed by $10.8 billion in 2025. It has also become a more profitable company. Shopify stock is also fairly undervalued. Its target price is $121, higher than the current $103.35.
Archer Aviation (ACHR)
Archer Aviation is another high-risk, high-reward Cathie Wood stock to buy. It is a leading company seeking to become the biggest player in the electric vertical takeoff and liftoff (EVTOL) industry.
Archer and Joby Aviation will likely be the biggest companies in the industry. They are nearing approvals from regulators, have raised millions of dollars, and have solid partners. Archer has received financing from Stellantis, and big orders from United Airlines. As such, the stock may continue doing well over time.
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