Three Stocks That Cathie Wood Just Purchased While Bargain Hunting

What's she buying? Ark Invest made noteworthy purchases on Tuesday, including UiPath (NYSE: PATH), Roblox (NYSE: RBLX), and AMD. Wood feels these stakes should be raised now. Let's investigate.  

1. UiPath Timing is crucial in robotics. Same with timing and robotics stocks. Tuesday saw Wood add more UiPath investments. The robotics and automation software provider publishes fiscal first-quarter earnings after the market closes on Wednesday.  

The stock has lagged the market in 2024, down 25%. For this week's report, analysts expect a 15% revenue gain and minimal adjusted bottom line improvement. This is half of its last financial update's 31% top-line increase.  

After rapid revenue growth through all four quarters of fiscal 2024, UiPath is slowing. Fortunately, robotics' future is hard to doubt. The epidemic revealed a staffing deficit that may have been avoided with increased workplace automation. Rising labor costs should attract more businesses to UiPath.  

After Wednesday's closing bell, investors will hope UiPath beats both sides of the income statement again. Over the past year, it exceeded adjusted earnings profit projections. UiPath's dollar-based net retention rate is also important. It's a terrific metric that displays returning customers' platform spending over the past year compared to the previous year.  

The average repeat consumer spent 19% more in March than a year earlier. Expectations are low for earnings season because the stock has fallen in four of the first five months. Good spot for UiPath to rise if it exceeds expectations.  

2. Roblox Roblox is another Wood holding that struggled in 2024. Despite a 27% drop this year, Ark Invest funds' sixth-largest position is the shares. The online gaming platform's recent financial update gave disappointing guidance earlier this month. It predicts sequential bookings growth and free cash flow decline  

Platform life is evident. The May data showed 77.7 million daily active users, up 17% from the year before. The number of premium-paying consumers at Monetization has increased 13% in the past year. Roblox faces red ink and fears its young audience will age out. When your audience and sales expand by double digits, things become better.  

3. AMD Advanced Micro Devices died last year after three years of 44% sales growth. Revenue and net income fell 4% and 35% in 2023. AMD's stock doubled when investors saw the broader picture.  

AMD's second-half business recovery helps. Upticks continue in 2024. It also helps that AMD's management has overstated its AI sales potential. Despite strong momentum, the stock is 25% below its two-month high. The dip is one Wood will purchase.  

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