Latest news with #ArkNextGenerationInternetETF
Bloomberg
20-05-2025
- Business
- Bloomberg
Cathie Wood Buys Most TSMC Depositary Receipts in Nearly a Year
Cathie Wood's funds made their biggest purchase of Taiwan Semiconductor Manufacturing Co. shares in nearly a year, underscoring a change in stance from being mostly sellers of the chipmaker since the third quarter of last year. Wood's flagship fund Ark Innovation ETF purchased 123,587 American depositary receipts of Taiwan's largest company on Monday, while Ark Next Generation Internet ETF bought 74,189 ADRs, Ark Investment Management LLC data compiled by Bloomberg show.
Yahoo
22-02-2025
- Business
- Yahoo
Cathie Wood Just Bought These 3 Magnificent Stocks. Should You?
Cathie Wood has developed a reputation for investing in up-and-coming tech disruptors, and she's been ahead of the curve with some of her finds. Her company, Ark Invest, markets exchange-traded funds (ETF), and they each feature an assortment of stocks that fit a certain trend in disruptive technology. Followers track her trades to see what new insight she might offer. Her ETFs have predominantly underperformed the market over time, but she has a good eye for identifying stocks to watch, and investors can get great inspiration from her picks. Here's how the flagship Ark Innovation ETF, the Ark Fintech ETF, the Ark Autonomous Tech and Robotics ETF, and the Ark Next Generation Internet ETF performed over the past three years compared to the S&P 500. Recently, she increased her position in Amazon (NASDAQ: AMZN), Shopify (NYSE: SHOP), and Toast (NYSE: TOST). All of these have beaten the market over the past three years. Let's see if they're still great investing ideas. Amazon is an exceptional company and has delivered exceptional gains for shareholders over its lifetime. Although its highest gains might be behind it, some of its best days may still be ahead. It has cemented its lead over any competition in the near term, and as the leader in two growth industries, it has a lot to gain in the future. It's investing in growing its lead, and CEO Andy Jassy keeps talking about the massive opportunities that are coming in generative AI. Amazon offers a slew of generative AI services for Amazon Web Services (AWS) customers, and it has the top position in cloud services. It's planning to invest more than $100 billion this year in making sure it has a competitive platform to offer competitive solutions to existing clients and also gain new ones. AWS sales increased 19% year over year in the quarter, and it was Amazon's fastest-growing segment. Cathie Wood bought Amazon shares for the Ark Fintech ETF last week when it fell after its fourth-quarter earnings report. The quarter itself was phenomenal, with double-digit increases in revenue and operating income, but the market was disappointed in Amazon's guidance. She recognized the opportunity and pounced. But Amazon stock is still down since the report, and you can still buy on the dip, too. Shopify, on the other hand, surged after its fourth-quarter report. Revenue accelerated, and it reported huge increases in operating income and net income. The future looks bright. E-commerce is expected to continue increasing as a percentage of retail sales, and Shopify is responsible for a large portion of U.S. and global e-commerce sales. It's the largest e-commerce software platform in the U.S., with 30% of the market, and it's generating growth along several fronts. But it's only the fourth-largest platform globally, with close to 11% of the market, according to Statista. One of its main growth drivers is international, where revenue growth outpaced the total at 33% year over year in the fourth quarter. Some of its other major growth drivers include physical retail, which also increased 33% in the quarter, and the business-to-business segment, which increased 150%. Cathie Wood is a longtime Shopify fan, and she bought Shopify stock last week for the Ark Next Generation Internet ETF. With its incredible performance and robust opportunities, it could be an excellent long-term holding for growth investors. Toast is a cloud-based restaurant management platform that's growing quickly and recently became profitable. It's the future of the restaurant industry, and it has emerged as one of the leaders in this space, even up against well-known powerhouses like Block's Square seller's business. It has nearly 127,000 locations as of the end of the third quarter, with 7,000 new locations added in the quarter alone. It benefits from a high referral rate, implying customer satisfaction and a flywheel effect where many locations in a given region join the platform at a high rate. It's expanding in multiple ways to grow its platform, from targeting international businesses to cross-selling customers to more expensive plans to recently launching a new product aimed at the supermarket industry. Growth has resulted in long-awaited profits, and net income turned from a loss in the previous quarter to $56 million in the 2024 third quarter. Cathie Wood added shares to the Next Generation Internet ETF last week, and investors can still get in on this fast-growing winner. Ever feel like you missed the boat in buying the most successful stocks? Then you'll want to hear this. On rare occasions, our expert team of analysts issues a 'Double Down' stock recommendation for companies that they think are about to pop. If you're worried you've already missed your chance to invest, now is the best time to buy before it's too late. And the numbers speak for themselves: Nvidia: if you invested $1,000 when we doubled down in 2009, you'd have $363,307!* Apple: if you invested $1,000 when we doubled down in 2008, you'd have $46,607!* Netflix: if you invested $1,000 when we doubled down in 2004, you'd have $552,526!* Right now, we're issuing 'Double Down' alerts for three incredible companies, and there may not be another chance like this anytime soon.*Stock Advisor returns as of February 21, 2025 John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool's board of directors. Jennifer Saibil has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Amazon, Block, Shopify, and Toast. The Motley Fool has a disclosure policy. Cathie Wood Just Bought These 3 Magnificent Stocks. Should You? was originally published by The Motley Fool Sign in to access your portfolio
Globe and Mail
06-02-2025
- Business
- Globe and Mail
Cathie Wood Is Buying Up Shares of This AI Dividend Stock. Should You?
Legendary fund manager Cathie Wood isn't typically associated with boring, dividend-paying companies. Known for picking up revolutionary firms such as Nvidia (NVDA), Tesla (TSLA) and Palantir (PLTR) on the cheap, Wood's investments - captured in her ARK Innovation ETF (ARKK) - are marked by a high-risk, high-reward philosophy. So, when the manager of billions of dollars of funds is loading up on the shares of a boring tech company that pays a reasonably high dividend yield, it is worth noting. About Qualcomm Stock Founded in 1985, Qualcomm (QCOM) is a leading multinational semiconductor and telecommunications company, renowned for its innovations in wireless technology. It develops and commercializes foundational technologies and products used in mobile devices and other wireless products. It is currently valued at a market capitalization of $189.1 billion. The stock has had a decent start to 2025, appreciating 13% in the year to date. Over the past 52 weeks, shares are up just over 22%. Cathie Wood has made multiple purchases of QCOM stock to start the year, recently purchasing 7,068 shares through the Ark Next Generation Internet ETF (ARKW) for a total value of about $1.2 million. The consistent buying activity in Qualcomm stock by Wood reinforces the firm's bullish stance. What has her so keen on QCOM? Solid Fundamentals Qualcomm has been a steady performer, growing its revenue and earnings at 5-year compound annual growth rates (CAGRs) of 9.93% and 18.18%, respectively. When the company reported its results for its fiscal fourth quarter in November, it beat estimates for revenue and earnings per share. Adjusted revenue increased by 18% from the previous year to $10.2 billion, and adjusted earnings went up by an even sharper 33% in the same period to $2.69 per share. Remarkably, this marked the 15th consecutive quarter of earnings beats from the company. Cash flow from operations also remained robust at $12.2 billion for the 12 months ended Sept. 29, rising 8% from the prior year. Overall, Qualcomm closed the quarter with a cash balance of $7.8 billion which was much higher than its short-term debt levels of $1.4 billion. On the dividend front, the company paid total dividends of $3.7 billion for the year ended Sept. 29, an increase from the previous year's figure of $3.5 billion. Its stock has a dividend yield of 2% and with a payout ratio of just 27.75%, leaving room for further growth. Strategic Tailwinds Qualcomm remains a dominant force in the wireless chipset industry and is actively expanding its AI capabilities across PCs, automotive applications, and smart home devices. As AI innovation accelerates, the demand for on-device AI solutions is expected to grow significantly, positioning Qualcomm to benefit from this trend. The company currently holds a 26.5% share of the 5G smartphone chipset market, securing the second-largest position overall while leading in the premium and high-end segment. On the AI front, Qualcomm has partnered with Meta Platforms (META) to support Llama 3.2, an initiative designed to meet the growing demand for running generative AI directly on devices. Additionally, the company has collaborated with Amazon (AMZN) to develop a Cloud-to-Edge AI solution that integrates Amazon's SageMaker with Qualcomm's AI Hub. Qualcomm's Hexagon NPU, a specialized AI processor, is capable of performing up to 100 trillion operations per second in certain scenarios, enabling everyday devices like smartphones and home networking systems to handle increasingly complex. In the automotive sector, Qualcomm's Snapdragon Cockpit Elite and Snapdragon Ride Elite platforms are poised to contribute to revenue growth in the coming years. The company's partnerships with major automakers such as Sony Honda Mobility, Mahindra, and others underscore its growing influence in advanced driver assistance systems. The company is on track to generate more than $4 billion in annual automotive revenues by fiscal 2026. The company is also seeing signs of a turnaround in its Internet of Things (IoT) business. New product launches are driving demand across consumer, industrial, and networking applications. Management anticipates that IoT revenue will grow by more than 20% year-over-year in the first quarter of its fiscal Q1, supported by inventory normalization and increased adoption of AI-ready solutions. Thus, Qualcomm's diversified expansion into AI, automotive, and IoT markets positions it for sustained long-term growth. Analyst Opinions on QCOM Overall, analysts remain cautiously optimistic about Qualcomm, giving it a rating of 'Moderate Buy' with a mean target price of $203.35. This denotes upside potential of about 19.4% from current levels. Out of 32 analysts covering the stock, 16 have a 'Strong Buy' rating, one has a 'Moderate Buy' rating, 14 have a 'Hold' rating and one has a 'Strong Sell' rating.
