There are growth investors, and then there’s the even more aggressive Cathie Wood. The co-founder, CEO and investment manager of Ark Invest is constantly on the move, even as she struggles to replicate the market-beating success she achieved four years ago.
Wood increased its existing investment amount. Amazon (NASDAQ:AMZN), Ibotta(NYSE:IBTA)and Teradyne (NASDAQ:TER) on monday. Let’s take a closer look at these three new purchases into Ark Investment’s family of exchange-traded funds.
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Unlike the other two companies on this list, Amazon hit another all-time high this month. The leading online retailer has consistently achieved low double-digit sales growth and continues to invest in new services and partnerships to maintain its top position.
Like Wood, Amazon itself is constantly on the move. Last week, we announced that we would be expanding it. previous investment at promising AI startup Anthropic. With a new $4 billion investment in Anthropic, e-commerce giant Amazon Web Services (AWS) will become Anthropic’s primary training partner. AWS Trainium is used to train and deploy Anthropic’s largest foundational models. More importantly, this is a shortcut for Amazon to go from being a laggard to a leader in AI, something that was previously an alarming shortcoming.
Image source: Getty Images.
Amazon stock has been on a roll this year, up 33%. This doesn’t mean all is rosy as Amazon kicks off its holiday shopping season later this week. At least one analyst issued a warning this week, noting that about half of Amazon’s agricultural products come from China, making it vulnerable to tariffs likely to be imposed on imports next year. There is.
Haul’s beta version, which launched earlier this month, could also be hit. Investors praised Amazon’s new deep-discount platform, where most items sell for less than $10, as a way to compete with fast-growing Chinese rivals Tem and Shein. But where do you think Amazon gets its products cheap enough to compete with its young, value-priced speedsters?
The good news is that Amazon has a history of overcoming challenges and challengers. The recent move to keep seller fees unchanged until 2025 may have been seen by investors as a missed opportunity, with one analyst calling it a $2 billion headwind. But Amazon tends to stay a step or two ahead of the skeptics.
Behind the most broken things Initial public offering (IPO) Bad first impression. Ibotta has failed to impress investors three times. The company, which operates a digital marketing platform that rewards shoppers with purchases through advertising partners, has reported back-to-back “suboptimal” quarterly results. Shares have plummeted 40% from their initial IPO opening of $117 in the spring.
Ibotta’s business adapts to any economic climate. People enroll in the cashback rewards program and earn points when they make purchases online or directly from Ibotta’s retail partners. Take Ibotta’s 15.3 million users who redeemed points for cash in its most recent quarter. When the economy is strong, consumers shop. When the economy stalls, advertisers should flock to platforms like Ibotta, which only charges brands for actual sales. Unfortunately, growth on this side of platform IPOs has slowed dramatically.
Revenue grew 52% last year. Through the first three quarters of this year, the year-over-year pace slowed to 43%, 14%, and 16%, respectively. The company’s $100 million to $106 million target for the current seasonal holiday quarter represents just a 4% increase at the midpoint.
Teradyne stock has lost nearly a third of its value since its peak in the summer, which could be a late night for the opportunistic Wood. The chip testing equipment maker began to stumble in late July, after reporting a weak outlook after strong second-quarter results.
Last month’s performance was even better. Teradyne clearly beat expectations on the top and bottom lines with downwardly revised estimates, but this time the midpoint of its sales and earnings outlook for the current quarter is in line with what Wall Street pros expected. Ta.
Teradyne is coming off several years of double-digit revenue declines, but the past two quarters have seen year-over-year profits turn positive. Wood isn’t the only one who sees opportunity here. Two weeks ago, Teradyne’s board of directors added an additional $100 million to the previously announced $2 billion stock repurchase authorization.
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John Mackey, former CEO of Amazon subsidiary Whole Foods Market, is a member of the Motley Fool’s board of directors. rick munariz has no position in any of the stocks mentioned. The Motley Fool has a position in and recommends Amazon. The Motley Fool recommends Teradyne. The Motley Fool has Disclosure policy.
