Tech magnate Cathie Wood steps up investment in renowned tech behemoth for year-end.
Gotta Make a Move: Cathie Wood's Big Pick for the New Year
Investment queen Cathie Wood (69), the brains behind ARK Invest, has her eyes on a tech magnate's stock for the new year – and her prediction might just hit the bullseye, with that stock on a trajectory for a dramatic climb.
Known for her knack for innovations disrupting the tech scene, Wood attracts Wall Street's attention in a heartbeat. Her investments mostly involve startups yet to turn a profit. So it's no small deal when she invests in a renowned tech titan – that means plenty of room for future growth, even for a well-established player.
But which company is the lucky one?
The Hot Stock on Cathie Wood's Radar in 2022
Wondering what that stock is? The stock in question belongs to the world-famous e-commerce kingpin, Amazon. ARK's latest filings reveal that Wood's company picked up nearly 25,000 shares for the ARK Next Generation Internet ETF and over 14,400 shares for the ARK Fintech Innovation ETF on January 6th.
Seems like Wood's convinced – Amazon's stock is featured in five out of the current six actively managed ETFs by ARK Invest. Last year, it soared around 60 percent and has surged around 155 percent over five years. That's no surprise – Amazon leads the e-commerce sector, a market far from a full house. But Amazon's fame stems primarily from online retail. Did you know it's also dominating the cloud sector? This segment could skyrocket by over 20 percent annually until 2030, according to Grand View Research.
Amazon's eyes are also on artificial intelligence (AI) – it's integrating AI into all aspects of their business, which could add fuel to this growth engine. Analysts expect a 11 percent revenue boost for Amazon in the 2024 fiscal year and EPS to leap by over 100 percent to $6.10. Most of them even advise buying the stock. For instance, JP Morgan's analysts are bullish, envisioning a 23 percent price potential with a price target of $280 and an overweight rating.
Despite Amazon's triumphs, the company is underpriced compared to its historical average – the current price-to-earnings ratio (P/E) is 37, while the average is 44.
Ever Thought About: Record Dividend Yields: The Top Dividend Stocks for 2025
or
Quantum Computing: The Winners Are Already Here
The investment queen, Cathie Wood, has chosen Amazon's stock for her focus in 2022, as suggested by ARK Invest's latest filings, indicating significant investments in both the ARK Next Generation Internet ETF and the ARK Fintech Innovation ETF. With Amazon's dominance in e-commerce, cloud services, and the expanding use of artificial intelligence, analysts anticipate a 11% revenue growth and a 100% leap in EPS by 2024, with some even advising to buy the stock, such as JP Morgan's analysts who have set a price target of $280 and an overweight rating. Consequently, this move in finance and investing underscores the ongoing importance of technology in shaping the future of businesses.
