Cathie Wood Goes Bargain Hunting: 3 Stocks She Just Bought
Key Points
Cathie Wood's Ark Invest bought shares of CoreWeave, Scribe Therapeutics, and Freenome on Monday.
CoreWeave and Scribe have shed more than half of their value from their 52-week highs.
Scribe and Freenome began trading just a few months ago, adding another layer of volatility into the mix.
- Motley Fool Issues Rare "Total Conviction" Buy Alert ›
Cathie Wood kicked off the new trading week making just a handful of trades. The co-founder, CEO, and chief investment officer at Ark Invest added to her stakes in CoreWeave (NASDAQ: CRWV), Scribe Therapeutics (NASDAQ: SCTX), and Freenome (NASDAQ: FRNM) on Monday.
The three stocks are trading 28% to 57% below their previous highs. Wood loves growth stocks, but she's not a momentum player. She's not afraid of adding to existing positions on the way down. Let's take a closer look at the three potentially opportunistic purchases by Ark in October.
Missed Nvidia in 2009? This Rare Signal Is Flashing Again. In 2009, a "Double Down" signal flashed for a little-known chipmaker called Nvidia. For the first time in years, that same "Total Conviction" signal is flashing for a company 1/100th the size of Nvidia. Continue »
Ark Investment Management CEO Cathie Wood. Image source: Getty Images.
1. CoreWeave
CoreWeave stock has been cut in half over the past year, but the 28% plunge over the past month has been particularly painful. The hyperscaler has been one of several AI plays that have corrected sharply in recent weeks, as the market resets its previously lofty valuation multiples.
CoreWeave was started by a few hedge fund friends who pooled their resources to buy GPUs to mine crypto. When that revenue stream hit a rough patch, they shifted to the AI opportunity. Their side hobby would become a business, and CoreWeave is now a leading provider of access to its data centers stocked with next-gen AI chips.
Top-line growth has been spectacular. CoreWeave's revenue soared 113% in its latest quarter, accelerating in back-to-back quarters so far this year. Triple-digit revenue growth has been the default setting for CoreWeave amid the boom in demand for AI compute, but profitability has been another story.
It costs money to build out its hosting empire with costly components. Losses continue. Analysts don't expect CoreWeave to post an adjusted profit until 2028. Positive earnings on a reported basis aren't expected until 2029. If you think Wall Street pros are being conservative, consider that they have underestimated the deficit in two of the last three quarters.
The rise in interest rates has crashed the party for CoreWeave investors. It's a heavily leveraged company, so it's paying the price for rising borrowing costs. It's also now that much harder for customers to finance their lofty AI ambitions. The sell-off continues after Wood was a buyer on Monday. CoreWeave stock hit another 52-week low on Tuesday.
2. Scribe Therapeutics
Scribe Therapeutics is another downward skier. Unlike traditional gene-editing stocks that rely on CRISPR therapies to alter DNA sequences, Scribe's proprietary ELXR platform uses epigenetic silencing to target disease-causing genes without altering the underlying DNA.
It's been a roller-coaster ride in its brief life as a public company. Scribe went public at $15 in July. It traded as high as $39.60 a month later, only to shed more than half its value, sliding back into the high teens today.
As a clinical-stage company, investors aren't buying for today's financial results. Scribe Therapeutics is a long-term swing for the fences. Cash burn is always the biggest concern for investors in assessing downside risk, but Scribe offers encouraging news on that front. In its first quarterly report as a public company, Scribe pointed out that it has enough cash on its hands to fund its operations through the first half of 2029.
3. Freenome
The lone stock that Ark bought on Monday that went up was Freenome. The shares rose 7% on Monday, but the developer of blood-based screening tests is still down nearly 30% from last month's high. Freenome -- yes, it rhymes with genome -- is focusing on early cancer detection.
Its SimpleScreen CRC for colorectal cancer screening hit the market last month after receiving approval from the U.S. Food and Drug Administration (FDA) in the summer. This week, it received FDA clearance for its lung cancer screening test. There are other potential tests in the pipeline for its proprietary discovery platform.
Freenome went public in June after merging with a special purpose acquisition company (SPAC). Yes, SPAC deals are apparently still happening in 2026 after a deluge a few years ago generated largely disappointing results.
Should you buy stock in CoreWeave right now?
Before you buy stock in CoreWeave, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and CoreWeave wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $376,696!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,333,920!*
Now, it’s worth noting Stock Advisor’s total average return is 925% — a market-crushing outperformance compared to 212% for the S&P 500. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors.
See the 10 stocks »
*Stock Advisor returns as of October 20, 2026.
Rick Munarriz has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.
Recommended Articles
