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3 stocks she just bought

Cathie Wood has some catching up to do this year. The co-founder, CEO and top stock picker of Ark Invest is still lagging the market. Its most popular aggressive-growth exchange-traded fund is trading just 3% higher in 2024, well below overall market averages. She doesn’t stand still.

Wood increased her existing interests Amazon (NASDAQ: AMZN), Sagittarius Aviation (NYSE: ACHR)And Joby Aviation (NYSE: JOBY) on Thursday. Let’s take a closer look at three of the thirteen stocks she bought on Thursday.

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The country’s largest online retailer has China on its mind these days. Bloomberg reports that the US House Select Committee, which is investigating strategic competition between the two countries, recently called Amazon employees to testify about the e-tailer’s shopping partnership with China’s TikTok.

On a more positive note, Amazon also launched Haul in beta this week. The new platform, rolling out within the updated Amazon app, offers a simple shopping experience full of deeply discounted merchandise. Most items on Haul cost less than $10. It’s a chance to compete against rivals Shein and PDD companies‘ Temu, two Chinese rivals courting customers in the United States with incredibly low prices.

Image source: Getty Images.

Will work at Good? As a brand that American consumers know and trust, Haul’s likely faster execution, and the looming trade disputes and potential tariffs, it’s easy to see why the platform could be a hit. Will its potential success come at the expense of Amazon’s traditional storefront, which likely carries higher margins? It’s definitely something to watch out for, as Amazon is growing a lot slower than Shein and Temu. Amazon’s total net sales rose 11% in the latest quarter, but domestic e-commerce revenue rose only 9%. Temu parent company PDD will not report its third quarter results until next week, but saw turnover increase by 86% in the previous quarterly update.

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If anyone is going to disrupt Amazon, it might as well be themselves. Amazon has more to offer than just selling things online. Popular cloud hosting company Amazon Web Services (AWS) is posting double-digit growth. Earnings per share rose 52% in the last quarter. With the robust holiday shopping season approaching, Haul will have to watch. Amazon’s expectations are for net sales growth of only 7% to 11% for the fourth quarter. We’ll see if Haul is a hit, a bust, or a hit that cannibalizes Amazon’s traditional storefront soon. Wood, of course, likes Amazon’s opportunities. She has built up her stake in Amazon in recent weeks.

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