Source: shutterstock.com/T. Schneider
Shares of Cathie Wood’s flagship exchange-traded fund (ETF), the ARK Innovation ETF (NYSEARCA:ARKK), are now down more than 60% year-to-date (YTD). Earlier this week, the Federal Reserve dealt another blow to markets by raising interest rates another 75 basis points and signaling for more raises in the future.
In the meantime, Ark Invest CEO Cathie Wood has lent confidence toward Elon Musk’s acquisition of Twitter. Cathie Wood says she sees Musk turning the platform into a “super-app,” offering things like payments and other financial services.
“Remember [Musk] started in the payments industry […] he sold his company to PayPal. He and [Twitter co-founder] Jack Dorsey working together, I think, could turn this into a super app.”
Investors will also be able to invest money into Twitter privately through Cathie Wood’s new venture capital fund. With that in mind, let’s take a look at the top five stocks Wood and company purchased this week.
1. Robinhood (HOOD)
Source: OpturaDesign / Shutterstock.com
Robinhood (NASDAQ:HOOD) reported its third-quarter earnings on Nov. 2, propelling shares higher by about 10%, although HOOD stock has since given up about half of its gains. For the period, revenue tallied in at $361 million, missing the consensus analyst estimate by just $1 million. Meanwhile, the trading platform remains unprofitable, reporting a net loss of $175 million, equivalent to an EPS loss of 20 cents. Analysts had forecast an EPS loss of 31 cents.
Furthermore, transaction revenue was $208 million, up 3% over the previous quarter. Equity and options transaction revenue also increased by 7% and 10% sequentially. Meanwhile, crypto revenue declined by 12% during the period. On the bright side, though, net interest revenue increased 73% to $128 million.
On Nov. 1 and Nov. 2, Cathie Wood purchased a total of 373,863 shares of HOOD stock through two Ark ETFs. Following the purchases, Ark Invest now owns a total of 29.86 million shares.
2. Rocket Lab (RKLB)
Rocket Lab (NASDAQ:RKLB) is a relatively new holding to Wood’s ETFs, with the first shares being purchased on Sept. 26. However, Cathie Wood has wasted no time in picking up RKLB stock. This week, the investor purchased 321,057 shares, bringing her total share count to 2.14 million shares.
Back in October, Rocket Lab announced that it had surpassed its annual launch record with the successful launch of its Electron rocket. That brought its total yearly launches to eight. The previous record was for seven launches in 2020. From April to October, the company has successfully launched a mission every month.
Now, the aerospace company is focused on a mid-air helicopter rocket catch. Today, another Electron rocket will take off with a research satellite. Upon its return, a modified Sikorsky S-92 helicopter will attempt to catch the rocket by its parachute line.
3. Exact Sciences (EXAS)
Source: Tada Images / Shutterstock
For the period, revenue totaled $523.1 million, handily beating the analyst estimate for $502 million. Excluding weakening demand for Covid-19 tests, revenue would have grown by 20% year-over-year (YOY). Exact Sciences remains unprofitable as well, reporting an EPS loss of 84 cents. However, that still beat the analyst estimate for an EPS loss of 97 cents.
Still, the company raised its full-year revenue guidance by $33 million to between $2.025 billion and $2.042 billion. Exact also lowered full-year operating expenses by $113 million at the midpoints. Finally, Exact Sciences now expects to be profitable on an EBITDA basis by Q3 2023.
4. Unity Software (U)
Source: Konstantin Savusia / Shutterstock.com
Unity Software (NYSE:U) will report Q3 earnings next week on Nov. 9 after the market close. However, Cathie Wood hasn’t waited for earnings to increase her stake in the company. This week, the fund manager purchased 505,297 shares through ARKK and the ARK Next Generation Internet ETF (NYSEARCA:ARKW).
Shares of this software company are now down more than 80% YTD, so U stock investors are banking on a solid earnings report. For the quarter, analysts expect revenue of $322.32 million and an EPS loss of 14 cents. Further, analysts expect revenue of $377.16 million and an EPS loss of 1 cent for Q4. If these estimates pan out, they will bring full-year revenue to $1.35 billion — up more than 21% YOY — and full-year EPS to a loss of 43 cents. Last year, Unity reported an EPS loss of 22 cents, meaning that profitability has not been improving.
Unity is also under investigation by law firm Bernstein Liebhard. The investigation centers around whether Unity’s board “breached their fiduciary duties.”
5. Adaptive Biotechnologies (ADPT)
Source: venusvi / Shutterstock.com
Adaptive Biotechnologies (NASDAQ:ADPT) is up by more than 10% today after reporting its Q3 earnings. The company places an emphasis on the human immune system and seeks to treat and diagnose diseases using its immune medicine platform.
For Q3, revenue came to $47.8 million, increasing 21% YOY increase and barely missing estimates. Furthermore, Adaptive posted an EPS loss of 32 cents, better than the estimated loss of 37 cents. The company’s clonoSEQ test was a major highlight of earnings, with volume growing by 52%. The company also entered into a partnership with Epic to integrate clonoSEQ into Epic’s “comprehensive electronic medical record (EMR) system.”
Guidance came in strong as well. The company expects revenue to grow at a compound annual growth rate (CAGR) of between 20% and 30% from 2022 to 2027. Adaptive also guided for positive adjusted EBITDA by 2025 and breakeven cash flow by 2026.
On Penny Stocks and Low-Volume Stocks: With only the rarest exceptions, InvestorPlace does not publish commentary about companies that have a market cap of less than $100 million or trade less than 100,000 shares each day. That’s because these “penny stocks” are frequently the playground for scam artists and market manipulators. If we ever do publish commentary on a low-volume stock that may be affected by our commentary, we demand that InvestorPlace.com’s writers disclose this fact and warn readers of the risks.
On the date of publication, Eddie Pan did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
Eddie Pan specializes in institutional investments and insider activity. He writes for InvestorPlace’s Today’s Market team, which centers on the latest news involving popular stocks.