IMPORTANT POINTS:
- Investor Cathie Wood acquired two companies whose shares are below $5 and have a Buy consensus from analysts.
- As the market faces some fears and headwinds, the head of Ark Invest has been accumulating shares.
- This time he opted for “cheap” companies such as Velo3D (VLD) and Ginkgo Bioworks (DNA).
In recent days, the stock market suffered a sell-off as investors feared seeing higher interest rates for a longer period. However, Cathie Wood has a particular view on the matter.
“I think we are on the other side of that massive increase in interest rates, which destroyed much of the performance. That is the most important thing,” clarified the director of Ark Invest, who takes advantage of these falls to accumulate shares.
In this context, Wood has bought “cheap” stocks that are trading at less than $5 and also have a buy rating by most Wall Street analysts.
Velo3D (VLD)
As its name suggests, the company is dedicated to revolutionizing the metal 3D printing industry. The company specializes in the production and distribution of 3D printers, but they are not the standard type, but rather avant-garde.
Their 3D printers are widely used by engineers from different sectors and there are already renowned companies that have acquired them, such as SpaceX, Lam Research and Honeywell.
In the second quarter, the last reported one, the company revealed that revenue grew 28% year over year to $25.1 million. Still, it lowered its 2023 revenue guidance from between $120 million and $130 million to a range of $105 million to $115 million.
Despite the fact that the shares accumulate a drop of more than 31% in 2023, Cathie Wood bought 1.89 million shares this month, totaling 9.1 million titles valued at just over 10 million dollars.
Ginkgo Bioworks (DNA)
This company was founded in 2008 and specializes in synthetic biology and genetic engineering, designing and producing customized microorganisms for a wide range of applications.
The “organisms” firm, as it calls itself, has created a platform that enables the rapid and cost-effective development of biological solutions, such as the production of new enzymes, flavors, fragrances and even biofuels, with the aim of addressing some of the challenges most pressing in the world.
Ginkgo has just signed an agreement to manufacture RNA-based drugs with the pharmaceutical industry giant Pfizer, in addition to establishing a partnership with Google Cloud.
In the last two months, Cathie Wood bought 12.7 million shares of the company and raised her stake to 168.9 million shares. This has a current market value of about $300 million.
The company’s shares register an increase of 4.4% in 2023, trading at $1.76.
