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  • Cathie Wood Is Loading Up On These Four Tech Stocks In 2021
    Business
    Benzinga

    Cathie Wood Is Loading Up On These Four Tech Stocks In 2021

    Cathie Wood, the founder of ARK Invest, is taking Wall Street by storm with her unconventional thematic investing. Namely, she follows an innovative fund style to find hyper-growth stocks with game-changing technology. Certainly, her unique method is working. To be sure, five out of six ARK ETFs posted more than 100% returns in last year alone. Result? Her funds saw a massive inflow of $20.6 billion, according to data from Morningstar, Portfolio Insider, and Nasdaq. Recently, Wall Street saw a heavy rotation into value stocks. But don’t count Cathie Wood as one of them. Instead, she is doubling down her bets on these innovative companies. “The benchmarks are filling up with value traps” due to the pace of innovation in fields including artificial intelligence and robotics, Wood said. “We think the big risk is in the benchmarks, not what we’re doing.” Billionaire Cathie Wood's predictions are must-follow because of her historic returns in the last three years -- with her picks soaring many times above their original share prices. Case in point: Last year, Ms. Wood’s ARK Genomic Revolution ETF, ARK Innovation ETF, and ARK Next Generation Internet ETF reaped returns of 159%, 203%, and 157%, respectively. Now, here are four technology stocks with huge potential that Cathie Wood has bought for her funds: 1. Coinbase (NASDAQ: COIN) Surely, Cathie Wood is bullish on cryptocurrency. She has been buying hand over fist in the largest cryptocurrency exchange and digital wallet service provider Coinbase. On the day when Coinbase made its public debut, ARK Invest scooped up 749,205 shares. A few days later, it added another 340,273 shares (worth nearly $112,970,000 million) to its position. Never shy from making bold predictions, Wood believes that digital wallets can develop into the most valuable technology of this era, pointing out its unprecedented speed of organic growth. "Digital wallets could become the most valuable technology developments per user of almost anything. We're pretty excited about that. If you were to draw a graph as we did in our big ideas showing how JPMorgan Chase & Co. (NYSE: JPM) got to these levels, it was one acquisition after the other, whereas Cash App and Venmo, because they are viral in nature, have gotten there organically," Cathie Wood said. Recent reports have supported Wood’s prediction. The digital wallet payments have surpassed the physical card for usage at contactless in-store payments and at the point-of-sale (POS) in 2020, according to the Global Payments Report. Plus, in-store cash payments fell by at least 50% in 2020 in advanced economies. 2. Unity Software (NYSE: U) A real-time 3D development platform Unity Software is trading at a bargain-basement price, in Cathie Wood’s view. She has been boosting her Unity Software stake over the last two months as the stock fell by 34% year to date. Despite the recent selloff, the company’s future fundamentals look strong based on revenue growth projections. Unity Software expects 2021 revenue in the range of $950 million to $970 million, in line with the company’s plan of sustaining 30% revenue growth in the long run. Unity CEO John Riccitiello said: “As the leader in creating and operating tools for the world of real-time 3D content, we continue to invest with the intent to capture what we believe is a substantial opportunity ahead in 2021 and years beyond.” 3. Shopify (NYSE: SHOP) Wood believes that Shopify can be as big as online retail giant Amazon (NASDAQ: AMZN) someday. As a result, Cathie Wood saw the dip in Shopify stock as a buying opportunity. Her firm added to its existing stake in e-commerce platform last week, according to Portfolio Insider. "We're trying to figure out how Amazon is going to deal with this notion of individuals seeing something on Instagram or elsewhere on Facebook or on Twitter, or on Snap and just buying there," Wood said. "That's a Shopify-enabled commerce opportunity and we think it's going to be big." Recently, Shopify’s stock price pulled back slightly from its recent all-time high of $1,500 that it had hit early in February. Regardless of the short-term price movements, SHOP’s stock price upside is likely to be tightly wounded to its growth trends. So far, so good: Shopify’s fourth-quarter revenue jumped 94% while 2020 revenue surged 86%. 4. Sea Limited (NYSE: SE) Cathie Wood has also been on a shopping spree with Sea Limited this year. The biggest lure of Sea Limited is how they can integrate dozens of their businesses into each other. Sea Limited has tentacles in eSports, mobile gaming, e-commerce, digital payments, and food delivery services. And the company is aggressively expanding its market penetration outside its home country in China, especially in Latin America and Southeast Asia. These segments have generated triple-digit revenue growth for Sea Limited. As a result, its consolidated revenue grew more than 100% in 2020, and it expects to extend that momentum into 2021. Cathie Wood first initiated a position in Sea Limited during the final quarter of 2019, and she has only continued to add her stake over time. See more from BenzingaClick here for options trades from Benzinga84% Of Warren Buffett's Portfolio In 2021 Is In These 3 Categories© 2021 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.

  • The Recent Pullback in These 3 Stocks Is a ‘Buying Opportunity,’ Say Analysts
    Business
    TipRanks

    The Recent Pullback in These 3 Stocks Is a ‘Buying Opportunity,’ Say Analysts

    It’s that time again – time to look for upwardly mobile stocks at relative bargain prices. We’ve just seen a pullback in market prices, but for some stocks the pullback started earlier and has run deeper. That’s opened up opportunities that Wall Street’s analysts have been quick to point out. These are Strong Buy stocks, despite their recent slips in share value. The analysts have noted that each one has a path toward near-term gains, making the risk-reward factors suitable for return-minded investors. And with prices down lately, these are suitable for bargain hunters, too. We’ve used TipRanks' database to find three stocks which meet that profile. Let's take a closer look. Farfetch, Ltd. (FTCH) Online retailers have obviously had an advantage in the past year, but on the flip side, the recent reopening of economies around the world has put some pressure on them. Farfetch, an online clothing retailer with an international profile – headquarters in London, offices in New York, LA, Tokyo, Shanghai, Portugal, and Brazil – shows both trends. The company’s gains in 2H20 pushed its market cap well above $16 billion, while recent stressors have forced the stock price down by 38% since its February peak. Farfetch has a solid foundation, based on more than 3 million active customers and over 1,300 sellers on the platform. The company saw, in 2020, over $3.2 billion gross merchandise offered through the site, making it the top global platform for buying luxury products online. The gross merchandise value was up 49% from the prior year. At the top line, Farfetch’s 2020 revenues were up 64% year-over-year, to $1.7 billion, with $540 million, about one-third of that total, coming in Q4. Covering Farfetch for J.P. Morgan, 5-star analyst Doug Anmuth notes that the recent weakness has created a “compelling buying opportunity.” This opportunity is based on: "1) FTCH’s position as the leading global marketplace in the $300B luxury market that is rapidly shifting online; 2) FTCH’s well-established e-concessions model that attracts more brands & inventory to the platform; and 3) FTCH’s strong position in the high growth China luxury market through both the FTCH app & recently launched store on Alibaba’s Tmall Luxury Pavilion. FTCH should also see its first full year of EBITDA profit in 2021, with a path to greater scalability over time driven by leverage in both Gross Margin and G&A.” In line with this bullish outlook, Anmuth rates FTCH an Overweight (i.e. Buy), with a $72 price target suggesting a one-year upside of 58%. (To watch Anmuth’s track record, click here) Overall, the Strong Buy consensus rating on Farfetch is based on 7 Buy reviews, which offset a single Hold. The stock’s share price is $45.50, and the average target of $74.38 implies ~63% upside for the next 12 months. (See FTCH stock analysis on TipRanks) Oncternal Therapeutics (ONCT) The next stock on our list, Oncternal, is a clinical stage biopharma company focused on oncology. The company is working to develop new treatments for cancers with unmet critical needs. The company’s pipeline has three drug candidate, in various stages of development from preclinical to a Phase 2 trial. The lead candidate in the pipeline, cirmtuzumab, is the one undergoing that trial. The drug is a monoclonal antibody that inhibits the ROR1 receptor in certain hematologic cancers. In December, the company released interim Phase 1/2 results of cirmtuzumab’s efficacy in combination with ibrutinib. The combination compared favorably to ibrutinib as a single agent. Cirmtuzumab is also in a Phase 1 clinical study as a treatment agent for breast cancer; updated results released earlier this month showed that a partial response or a stable disease in half or more of the patient cohort. Despite the positive clinical results, Oncternal’s stock tumbled 30% this month. According to Northland analyst Carl Bynes, in a note titled ‘Weakness Creates Buying Opportunity,’ investors should take this time to buy in. “We view shares of ONCT as an essential holding for those investing in the oncology segment, with multiple clinical updates anticipated in 2Q21 serving as MAJOR catalysts. We believe cirmtuzumab (anti-ROR1 mAb) is positioned to become a breakthrough therapeutic for treating MCL and other ROR1-expressing malignancies. Further, we anticipate first-in-human dosing of its ROR1 CAR-T candidate in 2H21 in China," Bynes opined. Congruent with his upbeat outlook, Bynes rates ONCT an Outperform (i.e. Buy), and his $21 price target implies an impressive upside of 265% in the year ahead. (To watch Bynes’ track record, click here) Wall Street has taken a unanimous stance on ONCT, giving the stock 4 recent positive reviews for a Strong Buy consensus rating. The average price target, at $15.50, indicates ~170% upside from the share price of $5.75. (See ONCT stock analysis on TipRanks) BioLife Solutions (BLFS) Drug companies can’t do their jobs without support services – or the products supplied by companies like BioLife. The company supplies cell and gene therapy bioproduction tools, including cryopreservation storage units, biopreservation for blood storage, hypothermic storage and shipping media, and, importantly, cell thawing media allowing use of biosamples after cryopreservation. BioLife’s quarterly top line has shown sequential gains in both Q3 and Q4. The third quarter gain was 14%, and increased to 30% in Q4. The Q4 revenue, at $14.7 million, was up 78% yoy. For the full year, the top line hit $48.1 million, a yoy gain of 76%. The company has provided 2021 revenue guidance in the range of $101 million to $110 million. With this in the background, we can look at the share performance. BLFS shares peaked in December, after rising 176% in 12 months. Since then, the shares have retreated 31%. Carl Bynes, of Northland Capital, sees that share retreat, again, as an ‘in’ for investors. "We view the recent pullback in BioLife shares as a buying opportunity. BioLife, in our view, is uniquely positioned to emerge as the leading consolidator of the enabling technologies segment supporting the high-growth cell and gene therapy sector. The Co., through internal development and acquisitions, has amassed a comprehensive breadth of product and service offerings that support cell and gene therapy applications from development through commercialization,” Bynes noted. To this end, Bynes rates BioLife an Outperform (i.e. Buy), along with a $55 price target to indicate a 12-month potential upside of ~75%. (To watch Bynes’ track record, click here) Looking at the consensus breakdown, Wall Street takes a bullish stance on BLFS. 6 Buys and 1 Hold issued over the previous three months make the stock a ‘Strong Buy.' BLFS shares are selling for $31.51, and their $55.83 average price target suggests a 77% upside. (See BLFS stock analysis on TipRanks) To find good ideas for beaten-down stocks trading at attractive valuations, visit TipRanks’ Best Stocks to Buy, a newly launched tool that unites all of TipRanks’ equity insights. Disclaimer: The opinions expressed in this article are solely those of the featured analysts. The content is intended to be used for informational purposes only. It is very important to do your own analysis before making any investment.