Cathie Wood Goes Bargain Hunting: 3 Stocks She Just Bought

Some people take in strays. Investing icon Cathie Wood likes to feed her dogs. The co-founder, CEO, and chief investment officer at Ark Invest has an impressive collection of growth stocks across her family of exchange-traded funds. She also has a knack for adding to existing stakes when they fall out of favor.

Ark added to its positions in Archer Aviation (NYSE: ACHR), MercadoLibre (NASDAQ: MELI), and Nu Holdings (NYSE: NU). Archer Aviation has surrendered nearly two-thirds of its value over the past year. MercadoLibre and Nu Holdings were two of Monday's hardest-hit stocks. Let's take a closer look at all three stock moves.

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1. Archer Aviation

Archer Aviation's business is literally and figuratively about to take off, but the same can't be said for the stock. Shares of Archer Aviation have been cut nearly in half in 2026. It's a broken IPO, trading 60% below its debut price from five years ago.

The irony is that Archer Aviation stock is ready to break free from its past as a pre-revenue company. The creator of its own emerging electric vertical takeoff and landing (eVTOL) aircraft is currently on a "No Roads" flight tour. It's showing off its Midnight aircraft, which can travel up to 100 miles with a pilot and up to four passengers. It's looking to impress the public as it clears Federal Aviation Administration hurdles to operate.

Archer Aviation isn't alone. It has partnered with airlines and the U.S. military. It's already struck a deal to be the official air-taxi provider of the 2028 Summer Olympics. Long-term revenue projections have recently been pared back, but it's still an impressive trajectory from here.

• 2026: $15 million
• 2027: $138 million
• 2028: $507 million
• 2029: $1.39 billion
• 2030: $2.25 billion

Don't ask about earnings at this point. Archer Aviation's cash-rich balance sheet reduces its $3 billion market cap to an enterprise value of only $1.6 billion. The market for high-end air taxis and next-gen military operations may not have materialized yet, but sometimes you have to build first and generate demand later.

2. MercadoLibre

MercadoLibre stock tumbled 8% on Monday, trading as much as 13% lower at one point. It wasn't company-specific news leaving a dent in the shares of Latin America's e-commerce and fintech leader. Global investors cashed out of Brazil stocks, following unexpected election results.

Incumbent Luiz Inacio Lula de Silva emerged victorious against challenger Flavio Balsonaro. The conservative Balsonaro was expected to be a more business-friendly choice, but the market reaction is still odd, given that MercadoLibre has delivered record growth under Lula.

Brazil's currency tumbled 8% on Monday, and the largest Brazil-concentrated ETF surrendered 20% of its value. But MercadoLibre fared better than the basket of Brazilian stocks, because it's a major player throughout Latin America. Brazil is its largest market, but the Uruguay-headquartered business is geographically diversified.

Investors may want to treat Monday's pullback as a buying opportunity, as Wood did. The business has been rolling lately. The 50% net revenue growth it posted in its latest quarter was its biggest year-over-year jump in four years. It has a jaw-dropping streak of 30 consecutive quarters of at least 30% top-line growth.

3. Nu Holdings

The parent company of Brazil's Nubank took a larger 17% slide on Monday. That checks out. Nu has a growing presence in Mexico and Colombia, and it also recently scored a bank charter for U.S. customers. The growth opportunities are impressive, but more than 60% of adults in Brazil have an active relationship with Nu.

As a provider of credit card financing and loan products, Nu will be susceptible if Brazil experiences a prolonged economic funk. The bullish counter is that Nu Holdings didn't have a problem growing its branchless operation in previous Lula de Silva administrations.

Analysts may pare back their profit targets on Nu in the coming weeks. In the meantime, Nu is trading for a mere 11 times next year's earnings. This is a great price for a company that's been growing its business by at least 30% for at least six consecutive years.

Rick Munarriz has positions in MercadoLibre and Nu Holdings. The Motley Fool has positions in and recommends MercadoLibre and Nu Holdings. The Motley Fool has a disclosure policy.