Cathie Wood’s track record may not be flawless, but hidden amid the mix of choices are gems worth unearthing.
The Rollercoaster Ride of Cathie Wood
Despite some controversial picks that raised eyebrows among investors, such as the lofty valuations of Coinbase and Tesla, there have been instances where Wood’s foresight has paid off handsomely. One notable success was her early bet on Tesla before its meteoric rise.
Exact Sciences (EXAS)
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Exact Sciences (NASDAQ: EXAS) has been frequently overlooked by investors, with its colon cancer test, Cologuard, being its main highlight. Recently, the company made waves with positive data on a non-endoscopic esophageal cancer test, causing its stock to surge by around 10% within days.
Aside from Cologuard, other tests by Exact Sciences are showing promising growth trends. The revenue from overseas sales of Oncoptype tests soared by 48% last quarter compared to the previous quarter of 2022. Add to that the potential billion-dollar sales forecast for its Predictive Oncology unit, and Exact Sciences emerges as one of the top picks in Cathie Wood’s portfolio.
Roku (ROKU)
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Roku (NASDAQ: ROKU) commands the U.S. market with its premier streaming platform. As streaming continues to gain momentum, Roku’s engagement metrics have been on a meteoric rise. In 2023, the platform witnessed a 20% surge in streaming hours, surpassing 100 billion, while its user base expanded by 10 million.
With marketers leveraging user behavior for targeted advertising, Roku’s revenue climbed by an impressive 13.5% in the last quarter, reaching $984.4 million. The trajectory of streaming growth points towards further revenue escalation for Roku in the foreseeable future.
Zoom Video (ZM)
Zoom Video: Thriving Amidst Evolution
Transitioning from Growth to Value
Amidst the tumultuous pandemic, Zoom Video (NASDAQ: ZM) emerged as a shining star, characterized by rapid growth and a lofty valuation. However, the winds of change have swept through the realm of Zoom, transforming it into a resilient value stock. The company now boasts a modest forward price-earnings ratio of 12.67 times, marking a significant shift from its previous status.
Revenue Dynamics
Zoom Video’s financial landscape reveals an intriguing tale of two revenue streams. In the fourth quarter of the previous year, the company witnessed a 5% surge in revenue from enterprise customers, soaring to $667 million. In contrast, overall sales only inched up by 2.7% year-over-year, amounting to $1.15 billion.
Enterprise Dominance
This revenue dissonance paints a vivid picture—Zoom Video is harvesting a bountiful yield from enterprises while experiencing a sluggish growth trajectory in consumer sales. The disparity in revenue sources, coupled with the deeper pockets of enterprise clients, serves as a catalyst primed to propel the company’s growth into overdrive over the long haul.
Insights and Future Projections
As Zoom Video traverses the dynamic terrain of the stock market, its evolution offers profound insights into the ever-shifting forces shaping the technological landscape. The company’s strategic positioning within the enterprise sector sets the stage for a promising trajectory, hinting at sustained growth and prosperity in the days ahead. Investors keen on unravelling the enigmatic world of stocks are undoubtedly keeping a close eye on Zoom Video, awaiting the next chapter of its captivating journey.
