Wood's Ark Invest Snaps Up Undervalued Stocks Amid Market Volatility

Cathie Wood's investment firm Ark Invest has been busy buying shares of several companies in recent days. One of her notable purchases was CoreWeave, a company that provides AI infrastructure services and is trading at 44% below its 52-week high. Another purchase was Amazon, despite the company's stock hitting a new all-time high. The third company bought by Ark Invest was Rocket Lab, which has been affected by the recent decline in rocket stocks.

CoreWeave reported revenue growth of 112% in its latest quarter, but disappointed investors with a larger-than-projected loss. However, analysts believe that the company's top-line growth story is strong and needs to invest in building out its empire at this stage. Ark Invest was also a buyer of Amazon, which just posted its strongest revenue growth in five years.

Rocket Lab, on the other hand, has generated meaningful revenue for years as a leading provider of space systems and launch services. The company is not profitable yet but analysts expect it to be on an adjusted basis next year and on a reported basis by 2028. Demand is booming with an order backlog of $2.2 billion at the end of the first quarter.

Ark Invest's purchases are notable as they often buy when their favorite stocks pull back. The company's CEO, Cathie Wood, tends to be opportunistic and looks for undervalued companies that have strong growth potential.