3 Stocks She Just Bought

Iconic growth investor Cathie Wood is hoping to bounce back this year. The largest of her funds at Ark Invest — where she’s a co-founder and CEO — is down 7% this year, a contrast to the markets trading slightly higher in 2024. She’s not standing still but rather continuing to make opportunistic buys and sells across her portfolios.

Wood bought shares of Palantir Technologies (NYSE: PLTR), Teladoc (NYSE: TDOC), and Roku (NASDAQ: ROKU) on Tuesday, building up some of her largest positions. Palantir has slipped a bit since hitting a two-year high last month, but Teladoc and Roku are trading well below their earlier peaks. Let’s take a closer look at these three purchases.

1. Palantir

Palantir was one of last year’s biggest market gainers, and it didn’t slow down in early 2024. The software developer for the intelligence community saw its stock nearly quadruple in the 14 months through the end of February. The shares would go on to hit a fresh two-year high in early March, but Palantir is now trading lower for the second month in a row.

Palantir is scoring significant deals, but it’s no longer merely a play on solutions for the military and other public sector entities. The same skills that made it popular as a government contractor are playing well with private companies. U.S. commercial revenue may have been just $131 million — or less than 22% of the $608 million it generated in its latest quarter — but that segment’s top line soared 70%.

Image source: Getty Images.

A steady trickle of press releases celebrating new contracts is helping to get Palantir noticed. It’s also been popular over the last year and change as a play on artificial intelligence (AI).

The upticks have become a bit too much for even some of its earlier believers. Brian White at Monness, Crespi, Hardt & Co. downgraded Palantir to sell two weeks ago, concerned about how the “AI hype cycle” has lifted the stock’s valuation to unsustainable levels. Naturally, Cathie Wood doesn’t see it that way. She added to her stake on Tuesday.

Story continues

2. Teladoc

One of the big market winners early in the…

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