Cathie Wood Goes Bargain Hunting: 3 Stocks She Just Bought

Cathie Wood is a growth investor, but that doesn't mean she'll shy away from buying opportunities when her portfolios are coming under pressure. The co-founder and CEO of Ark Invest added to a few existing positions in her fund family's ETFs on Tuesday.

She was a buyer of CoreWeave (NASDAQ: CRWV), SpaceX (NASDAQ: SPCX), and X-Energy (NASDAQ: XE), which declined 3%, 7%, and 10%, respectively, on Tuesday. Let's take a closer look at the three potentially opportunistic purchases by Ark this week.

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1. CoreWeave

CoreWeave stock's 3% slide on Tuesday may not seem like much, but zoom out. The hyperscaler has seen its value cut nearly in half, down 48% since peaking exactly one year ago today. You can zoom out even more for a different story. CoreWeave went public at $40 a share just 16 months ago, and even closed slightly lower on its first day of trading. The shares have more than doubled from last year's IPO price.

CoreWeave has an origin story as wild as its stock chart. The company was started by a few hedge fund friends, who bought a few GPUs to mine crypto. When the market for digital currencies experienced a pullback, they had a choice to make. They could fold, as so many were doing in their position, or they could take advantage of the situation by picking up more GPUs at fire-sale prices from fellow failed crypto-mining upstarts.

CoreWeave was targeting two emerging industries that needed the high-performance and low-latency GPUs solutions they could provide: movie studios looking to render special effects and generative AI start-ups. The latter of those two groups put CoreWeave on the map.

Business is booming as CoreWeave rides the booming demand for AI resources. Revenue soared 112% to top $2 billion in its latest quarter, comfortably ahead of the 101% increase analysts were expecting. The top-line beat was edged out by CoreWeave's wider-than-expected loss. It has missed Wall Street's profit targets in three of its first four quarters as a public company.

CoreWeave had a revenue backlog of $99.4 billion by the end of the first quarter. It landed nearly $40 billion in new orders during the quarter, including a $21 billion commitment for Meta Platforms (NASDAQ: META) in March. In a sign of how quickly the marketplace is changing, CoreWeave took a hit last week, after Bloomberg reported that Meta was starting to offer AI processing to third-party customers. Was the company accounting for more than a fifth of CoreWeave's backlog about to become a competitor?

In the meantime, top-line growth should be stellar through at least the next few quarters. The $12 billion to $13 billion it's currently modeling for 2026 means another year of revenue that more than doubles for CoreWeave.

2. SpaceX

CoreWeave was added to the Nasdaq-100 index last month. SpaceX just got added to the widely followed index on Tuesday. Bulls were expecting billions in SpaceX stock buying by index-tracking fund managers on Tuesday. But that wasn't enough. The stock pulled back 7% on the day.

The company behind Starlink, launch services, and the push for reusable rockets is still comfortably ahead of last month's IPO price of $135, but Tuesday's markdown leaves SpaceX trading 34% below the high it hit on its third day of trading.

The long-term upside may seem as high as the sky that it routinely penetrates. It's already the world's leading satellite internet provider and the top dog in rocket launches. If the local uproar against building out data centers in the area eventually becomes viable in outer space, SpaceX should be the lead horse in the future.

The short-term upside may be limited. It's already one of just seven companies with market caps above $2 trillion. And it's the only one on that list that's currently not profitable. Its $19 billion in trailing revenue is also the smallest in that group, by a large margin.

SpaceX is growing faster than the others on that list, and it's expected to join them in profitability next year. The valuation argument is hard to make for now, but Wood is a believer. Don't be surprised to see her pick up the pace of her purchases if SpaceX buckles below its IPO price later this summer.

3. X-Energy

If CoreWeave investors who bought at the top on July 8 of last year are feeling the pain of losing almost half of their money on paper, peak X-Energy investors have lost more. Like SpaceX, its shares also peaked on its third day of trading earlier this year. In this case, the stock is down a brutal 55% since scoring that April high.

X-Energy is a developer of small modular reactors. Nuclear power is gaining momentum as a clean and efficient means of powering the AI revolution. X-Energy has the advantage of more than 100 active projects, even if it will be a long time before they start seeing the light of day. Beyond the rich pipeline, X-Energy has cleared many regulatory hurdles. The springtime IPO left it flush with cash. It just needs to get started.

Unlike CoreWeave and SpaceX, X-Energy is a broken IPO. It hit the market at $23 three months ago, and it's now trading in the teens. It has faced some reactor design and construction delays, but this was always going to be a stock for patient investors.

Rick Munarriz has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Meta Platforms. The Motley Fool has a disclosure policy.