Cathie Wood Goes Bargain Hunting: 3 Stocks She Just Bought

There aren’t a lot of money managers of exchange-traded funds (ETFs) who are household names to investors, but ARK Invest’s Cathie Wood fits the bill. Her penchant for disruptive growth stocks made her a rock star in 2020, and she’s starting to fight her way back after a springtime correction…

What is Wood buying these days? Well, she added to her stakes in DraftKings (NASDAQ:DKNG)MercadoLibre (NASDAQ:MELI), and Coinbase (NASDAQ:COIN) on Tuesday. Let’s see why she might be loading up again on these three growth stocks.

DraftKings

A lot of Wood’s growth stocks have started to bounce back in recent months, but the same can’t be said about DraftKings. The fantasy sports leader that is rapidly expanding its presence in actual gambling is still trading 36% below the all-time high it hit in March.

The appeal of DraftKings is easy to see if you check out its growth rate. Revenue rose 90% last year, and it kicked off 2021 with a 253% top-line burst for its first quarter. DraftKings has done a great job of striking deals with media companies, sports leagues, and individual teams to become a highly visible brand to sports fans. Just last week, it expanded its partnership with Major League Baseball to include live-streaming and wagering.

With DraftKings growing its reach as well as consistently boosting its guidance, this seems like an opportunistic buy for Wood: a fast-growing company that won’t remain out of favor for long.

MercadoLibre

One of the more interesting stock buys for ARK Invest on Tuesday was MercadoLibre (NASDAQ:MELI). The leading online marketplace in Latin America has been one of the market’s hottest growth stocks over the past decade, but it’s the first time that Wood has added to her position in more than two months. Even more importantly, ARK Invest had been routinely reducing its stake in MercadoLibre since late last year. This week’s move shows that the early May purchase wasn’t a fluke.

Like most online commerce platforms, MercadoLibre saw its popularity take off during the pandemic. Unique active users have…

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