10 Best Software Stocks to Buy According to Cathie Wood

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In this article we discuss the 10 best software stocks to buy according to Cathie Wood. If you want to skip our detailed analysis of Wood‘s history, and hedge fund performance, go directly to the 5 Best Software Stocks to Buy According to Cathie Wood.

Catherine Wood, the founder of New York-based ARK Investment Management, has publicly blamed Tesla, Inc. (NASDAQ: TSLA) chief Elon Musk for the recent crash in prices of cryptocurrency stocks. In a pre-recorded message to a conference recently, Wood, a pioneer in aggressive growth investing who has seen her crypto holdings fall in value by more than 30% since February, said that institutional pressure had forced the Tesla, Inc. (NASDAQ: TSLA) chief to raise environmental concerns related to coin mining earlier this month.

As a result of the concerns raised by Musk, Bitcoin, the most popular crypto currency, lost close to 50% in value over the past few weeks. Other crypto stocks like Square, Inc. (NYSE: SQ) followed too. Tesla, Inc. (NASDAQ: TSLA) later announced that it would suspend Bitcoin payments for vehicle sales, paradoxically sending Tesla, Inc. (NASDAQ: TSLA) share price nose diving as well. Wood, through ARK Investment, owns large holdings in Square, Inc. (NYSE: SQ) and Tesla, Inc. (NASDAQ: TSLA) with a combined worth of over $6 billion.

Amid the chaos around crypto stocks, Wood has turned her attention towards software-related growth stocks in recent months, according to regulatory filings submitted to the US government. ARK Investment has increased stakes in software platforms like Shopify Inc. (NYSE: SHOP), the Canadian ecommerce giant, and Zillow Group, Inc. (NASDAQ: Z), the online real estate marketplace, during the last quarter. Shopify Inc. (NYSE: SHOP) and Zillow Group, Inc. (NASDAQ: Z) now together represent close to 5% of the entire investment portfolio of ARK.

However, Wood is still bullish on the crypto industry, and around growth stocks in particular. According to a report published by American news platform CNBC, Wood has doubled down on her bets on technology stocks in recent weeks as financial experts warn of a bursting tech bubble that saw Wood, whose portfolio is loaded with tech stocks, post over 152% in returns last year. Wood said earlier this week that she was not worried about the threat of inflation that had been disturbing many on Wall Street.

She also added that she actually expected deflation in the context of a breakdown in commodity prices, a gridlock on tax policy in Washington, and several trends which indicated that innovation stocks were set to take off. It remains to be seen whether Wood is right about her outlook on growth stocks like crypto and software, amid a broader lull in the market around technology stocks and increased interest in established sectors like manufacturing and consumer staples. The post-pandemic economy has even left market experts baffled.