Cathie Wood has made a name for herself as one of the top stock pickers over the past decade. However, her ARK family of ETFs will have spooked investors who have seen massive losses from those holdings. Therefore, the market is likely to look past Cathie Wood stocks at this time.
It is unfair, though, to suggest that Cathie is bad at her job. She prioritizes growth stocks that are typically disruptive and can experience huge gains and losses. That’s just the nature of the beast, and her strategy has paid a lot of dividends.
The current market situation isn’t conducive for a Cathie Wood approach, but the downturn has created an opportunity to load up on some long-term stocks. Let’s look at seven Cathie Wood stocks that could gain big over the long term.
| DKNG | DraftKings | $10.89 |
| TDOC | Teledoc | $28.77 |
| SQ | Block | $57.63 |
| PATH | UiPath | $17.71 |
| SHOP | Shopify | $304.68 |
| RBLX | Roblox | $25,34 |
| GM | General Motors | $31.83 |
DraftKings (DKNG)
DraftKings (NASDAQ:DKNG) stock has taken a major blow with investors’ concern over stock stocks and the delays in its profitability.
However, the iGaming giant continues to post stellar revenue growth each quarter. In addition to delivering over 30% growth each quarter, it continues to expand its operations rapidly.
A major catalyst for its business is the legalization of sports betting in California, which could materialize in November. At this point, DraftKings operates its services in 36% of the U.S. population, which points to a massive upside ahead. All the while, DKNG continued to achieve incredible organic performance and raised its guidance for the year.
It points to revenue of $1.925 to $2.025 billion for the year, which amounts to 49% to 56% year-over-year growth. Moreover, the stock has never been cheaper after the recent pull-back, making it more attractive than ever.
Teladoc Health (TDOC)
Teladoc Health (NYSE:TDOC) is a telehealth platform that connects patients to physicians through its online platform. It started off offering single-point solutions but has now transformed into on-demand healthcare and chronic care management provider.
Its business grew at a staggering pace during the pandemic. However, growth rates have slowed over the past few quarters within the pandemic fade. Nevertheless, it’s still growing over 50% year-to-date with a healthy increase in cash flows.
According to Fortune Business Insights, The telehealth market’s valuation could rise to $636 billion by 2028, a 599% increase from 2021. Most consultations can be conducted online, and with the shortage of physicians, the telehealth market will continue to grow at an impressive pace.
Block (SQ)
Block (NYSE:SQ) has been a top fintech stock with a tremendous track record and upside potential. It launched its robust payments solution for small businesses, quickly becoming a major player in its niche.
Moreover, it expanded into personal finance through CashApp, which has attracted millions of users worldwide. Over the past five years, the company has delivered roughly 64% top-line growth.
It entered a new phase in its growth story by betting big on the blockchain sector. CEO Jack Dorsey has been a vociferous supporter of Bitcoin, holding more than 8,000 of the coin.
Moreover, it plans to enter the booming NFT market, which research suggests could grow at over 35% from 2021 to 2026. It continues to innovate and grow its sales by adding to the stickiness of its ecosystem.
UiPath (PATH)
UiPath (NYSE:PATH) is an AI-pure play specializing in robotic process automation, an industry growing by over 30% annually. Its software platform enables businesses to automate several different functions.
UiPath assists companies in identifying automation opportunities and participates in designing and implementing appropriate solutions that help companies manage their businesses effectively. Though AI technology is a competitive space, UiPath has established itself as a frontrunner. In its most recent quarter, annual recurring revenues jumped 50% on a year-over-year basis to $977.1 million.
Moreover, the net retention rate in dollars is at an amazing 138%. Moreover, with investments in marketing, corporate infrastructure building, and quality control, UiPath could support a larger business in the future.
Shopify (SHOP)
Shopify (NYSE:SHOP) is an eCommerce infrastructure provider that gives users a holistic solution to building their online retail business of any size. It started as a simple solution to help small and medium-sized enterprises create an eCommerce presence.
However, it has consistently added new features to its platform, which has resulted in impressive growth over the past several years. Its revenues tripled over 2020 and 2021, and the stock’s prospects have worsened immensely. However, with the pandemic fade, it faces tough comps, negatively impacting investor sentiment for the stock.
Nevertheless, the long-term opportunity in online retail looks remarkably promising. It is likely to be a challenging year for Shopify, especially with the macro-economic conditions; the management forecasts accelerating sales growth, with the fourth quarter being the most impressive. Hence, SHOP stock will likely look a lot better in the future than it currently does at this time.
Roblox (RBLX)
Roblox (NYSE:RBLX) is a metaverse gaming platform that has caught the eyes of investors over the past couple of years.
It generates revenues from Robux, and in-game currency users use to purchase items and premium experiences. At this point, only a fraction of over 50 million of its daily active users have been monetized.
The management is finding ways to monetize more of its users to help grow its $1.9 billion in sales. One of its key strategies is the development of native and immersive advertising on the platform. Once this is set in motion, it could be an amazing way for Robux to effectively monetize the massive daily active user base who doesn’t buy Roblox.
Another attractive element of Roblox’s business model is that users must pay the company up front for mainly outsourced services. This allows the gaming giant to generate sizeable cash flows each year. Last year alone, its free cash flows have grown by over 36.50%.
Cathie Wood Stocks: General Motors (GM)
General Motors (NYSE:GM) stock has had it rough over the past few months amidst concerns over chip shortages.
However, GM has done remarkably well to weather the storm and grow revenues by roughly 11% to $36 billion. Moreover, the shortage will likely increase pent-up demand and support strong sales soon.
Furthermore, GM has been aggressively reinvesting its earnings at a brisk pace to expand its EV lineup and capacity. This should keep the automotive titan relevant as the sector transitions away from gas-powered vehicles.
It plans to spend $35 billion in electrification efforts by mid-decade and produce only EVs by 2035. Most recently, GM substantially increased its stake in autonomous vehicle subsidiary Cruise, worth over $30 billion. Hence, with multiple growth drivers, GM stock is an excellent long-term automotive pick.
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.