Cathie Wood Buys 3 Stocks During Bargain Hunting

Despite losing an hour to DST over the weekend, Cathie Wood isn't wasting time. The Ark Invest co-founder, CEO, and skilled stock picker added 10 growth stocks on Tuesday. Wood reveals Ark's ETF buys and sells after each trading day, so investors know. She's buying what? Pinterest, Nu, and Sea Limited were on her Tuesday shopping list. Let's examine her latest additions.

1. Pinterest The visual-discovery engine's stock is cooking again, like a Pinterest recipe. Pinterest shares have quadrupled since spring 2022. After five quarters of single-digit growth, the company has posted back-to-back quarters of roughly 12% top-line growth. Remember that last string of single-digit revenue growth for another company in this article.

Its platform had 498 million active monthly users in 2023, up 11% from the year before. Revenue rose 12% due to greater average revenue per user.

Pinterest's net income is expanding faster than revenue. In the company's recent quarter, adjusted EBITDA rose 86%. It's not simply popular social platforms' scalability. Pinterest is cutting expenditures to prepare for the next storm.

The company expects revenue to climb 15% this quarter. Some analysts wanted more, but Pinterest has become a more balanced growth story.

2. Nu Wood invests in fintech stocks with strong growth potential. She's also willing to leave North America for advancement. Since its debut a decade ago, Nubank, a Brazilian digital bank, has grown rapidly. Over half the nation has Nubank accounts.

Foreign exchange-neutral revenue grew 57% to $2.4 billion in the company's current quarter. Companies see big spikes when accounts grow 26% year-over-year and average revenue per active account rises 23%. Nu reported record net income in its current quarter after six consecutive profitable quarters.

The corporation anticipates 100 million accounts this year. Brazil can still improve, but the easiest option will be to grow its youthful presence in Mexico and Colombia by introducing new products and features. Although it has nearly tripled since last year, the company trades at 17 times next year's forecast earnings. Financial services businesses trade at lower multiples but aren't growing like Nu.

3. Sea Limited Sea Limited is attracting investors again. The Singapore-based e-commerce, online gambling, and fintech company's shares rose 43% in 2024, despite being down 84% from its late 2021 all-time high.

After its stock peaked, Sea Limited's business stagnated after four years of triple-digit revenue growth until 2021. Sea Limited, like Pinterest, has posted five consecutive quarters of single-digit top-line growth. First-ever full-year profitability is wonderful news. Analysts expect revenue growth to accelerate to 15% this quarter and year. They expect Sea Limited's 2024 profit to roughly double.


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