Cathie Wood Goes Bargain Hunting: 3 Stocks She Just Bought
Key Points
The recent pullback has likely become an opportune time to add shares in Shopify.
A sell-off in crypto may have made Robinhood Markets stock more attractive.
Despite continuing losses, massive user growth should ultimately bolster Roblox stock.
- 10 stocks we like better than Shopify ›
Cathie Wood and her team manage several funds under the company's umbrella. These funds trade actively, buying or selling where the team feels it is appropriate.
Amid the turmoil during this season, Wood's team has made some key purchases for Ark Invest. These stocks could boost the fund and investors who follow their lead.
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1. Shopify
On Feb. 11 and 12, Ark Invest added significantly to its holdings of Shopify (NASDAQ: SHOP).
Across three of its funds, it invested $31.6 million into this company, increasing its holdings by nearly 10%. After the purchases, Shopify is Ark Invest's seventh-largest holding, making up 3.2% of the fund.
Along with many other SaaS stocks, Shopify has sold off this year as artificial intelligence (AI) has become adept at replacing many software platforms at a lower cost. Fortunately, Shopify is an e-commerce ecosystem that is adopting AI tools to stay on top. Judging by the 30% yearly revenue growth in 2025, the company's growth remains rapid.
That is not to say the stock does not face some challenges. The 2025 profits of $1.2 billion shrunk 39% from last year amid a huge income tax benefit in 2024. Also, analysts' forecasts of 28% revenue growth in 2026 and 26% in 2027 mean growth rates may be slowing modestly.
Furthermore, at a P/E ratio of 120 and a forward P/E of 61, some investors may be leery of the valuation. Still, fears of AI replacing its software will likely not come to pass. For that reason, Ark Invest's decision to add shares should pay off longer term.
2. Robinhood
Ark Invest bought six different lots of Robinhood Markets (NASDAQ: HOOD) stock on Feb. 11 and 12. It made $46.4 million in purchases, adding to the total holdings by 16%. As a result, Robinhood is now the fund's eighth-largest holding, making up just over 3.1% of the fund.
Robinhood has stood out for commission-free trading of stocks and a platform that is easy to use, making it attractive for traders who may not have opened an account with an existing brokerage firm.
Like most tech-related stocks, it plummeted in 2022. However, in 2024, the stock recovered as it entered prediction markets, cryptocurrency, and credit cards, and it introduced a platform with expanded research and trading features in Robinhood Gold.
With that, it was concerns about crypto that helped lead to a sell-off in the last weeks of 2025, taking the stock down by more than 50% from that high.
Additionally, investors should note that its Q4 yearly revenue growth of 27% was below the 52% increase in 2025. Also, 2025 net income grew by only 33%, though a loss of its income tax benefit caused the slower profit growth relative to revenue.
Still, its P/E ratio has fallen to about 37. That level is attractive relative to Robinhood's growth, making it easy to see why Ark Invest added to its stake.
3. Roblox
The fund also added to its Roblox (NYSE: RBLX) holdings on Feb. 10 and 13. These purchases added up to around $20.3 million, adding to its holdings by 8%. This makes Roblox Ark Invest's 13th-largest holding, constituting 2.6% of total holdings.
Like its other purchases, Roblox has pulled back close to 60% from its high last September amid some challenges in its financials.
Roblox's user-created games and community gaming platform remain attractive, with daily active users rising 69% year over year to 144 million. From that standpoint, one can understand why Ark Invest added to its position amid the pullback.
Still, despite its growth potential, Roblox investors face significant risks. In 2025, revenue grew by 31% yearly. The company forecasts a 23% to 29% increase in 2026, which may have soured investors on the stock. Also, losses actually rose to $1.07 billion from $935 million as costs and expense growth kept pace with revenue increases.
That loss is primarily due to the $1.13 billion in stock-based compensation during 2025, a non-cash expense. Consequently, it generated about $1.36 billion in free cash flow, meaning it can fund its operations.
Also, with its loss, it has no P/E ratio. Nonetheless, its price-to-sales (P/S) ratio has fallen to 9, greatly lowering Ark Invest's risk of buying the stock now.
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Will Healy has positions in Shopify. The Motley Fool has positions in and recommends Roblox and Shopify. The Motley Fool has a disclosure policy.
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