Many Canadian investors are likely already familiar with Warren Buffett. However, you may not be as familiar with Cathie Wood. Cathie Wood is also one of the most popular investment strategists in the United States. And it’s why we turn our attention to Cathie Wood and her ARK Invest company.
Today, we’re going to look at the companies that Cathie Wood has been buying these days. Ones that show signs of strong innovation, which Cathie Wood focuses on, and why even Canadian investors can get in on this action.
First up we have CRISPR Therapeutics (NASDAQ:CRSP), a healthcare company with a focus on gene editing. Yet in recent history, Cathie Wood is likely interested in the stock as an acquisition target. This comes after approval of Casgevy, a one-time treatment for sickle cell disease. And this could generate incredible revenue in the near future.
Yet the stock is down from all-time highs, with revenue shrinking in the recent past. Because of this, it could be a valuable acquisition target for the right buyer – and, therefore, an easy way to get in on the gene editing market.
As for today’s investor, it’s a great time to get in on CRISPR stock. It’s already on the path to recovery, has a solid future ahead with its Casgevy product, and could be part of an acquisition. Shares are up 24% in the last year alone, with even more growth ahead to help it reach its 52-week high.
Another top stock in the healthcare sector that Cathie Wood is buying is Recursion Pharmaceuticals (NASDAQ:RXRX). This TechBio company has spent a decade “building one of the world’s largest biological and chemical datasets,” the company states. This will help future scientists “decode biology” and allow for a faster way of identifying the right solution to improve drug efficiency.
Recursion, however, recently outlined its new Large Language Model-Orchestrated Workflow Engine (LOWE), which is like artificial intelligence (AI) for biology and chemical data. With a faster workflow, the company can make faster discoveries, and therefore sell drugs faster. So no wonder shares have soared higher and higher.
However, this of course takes a lot of investment. The company continues to trade at a loss, with revenues expected to continue to be lower than in previous years. Even so, long-term investors such as Cathie Wood will likely see great things from this stock. For now, shares are still up by an impressive 22% in the last year.
Canadian investors can also check out Unity Software (NYSE:U) for something out of the healthcare sector. Cathie Wood recently invested in the game engine, despite going through quite a bit of drama over the last while. Unity stock cut 25% of its workforce during a company “restructure,” just last week. All while the stock continues to spiral.
However, it seems that Cathie Wood is using this spiral as an opportunity. Especially as an interm-chief executive officer (CEO) stepped in from IBM, and was already making changes. Specifically, the interm-CEO stated the company is trying to do too many things.
It’s unclear where the focus will be in the near future. And that focus likely won’t happen until Unity has a full-time CEO. But for now, investors such as Cathie Wood are taking this downturn as an opportunity ahead of what could be a huge turnaround in the future. Especially from an innovative company like Unity stock.