Cathie Wood Goes Bargain Hunting: 3 Stocks She Just Bought

On Monday, Ark Invest co-founder, CEO, and chief investment officer Cathie Wood made a few modest stock purchases. Her acquisitions targeted CoreWeave (CRWV +2.45%), Scribe Therapeutics (SCTX +7.17%), and Freenome (FRNM +8.99%), all of which have been trading 28% to 57% below their previous highs. Wood is known for her love of growth stocks, but she doesn't engage in momentum investing – she's not afraid of increasing her position even as prices fall.

CoreWeave, once valued at a high multiple, has seen a significant decline over the past year and month. The company, founded by AI investors, now provides data centers with next-gen AI chips. Although its revenue has grown by 113% in its latest quarter, it remains unprofitable, with analysts predicting profitability in 2029. The company's high debt and rising interest rates are impacting its valuation.

Scribe Therapeutics, another recent addition to Wood's portfolio, uses a different approach to gene editing than traditional CRISPR therapies. Its epigenetic silencing platform targets disease-causing genes without altering the underlying DNA. The company went public in July at $15 and has since dropped more than half of its value. However, Scribe has enough cash to fund operations through the first half of 2029, providing some optimism for long-term investors.

Freenome, the final stock purchased by Ark, is developing blood-based screening tests for cancer detection. The company's SimpleScreen CRC for colorectal cancer screening received FDA approval in the summer, and it has now received clearance for a lung cancer screening test. Despite a 30% decline from its recent high, Freenome's shares gained 7% on Monday. The company, spun off from an SPAC in June, has several potential tests in its pipeline.