Stock picking

2 stocks to sell and 3 to buy now, according to Ark Invest

Cathie Wood's investment strategy focuses on an innovative and future-oriented approach.
His investment fund Ark Invest just sold 2 specific stocks, while suggesting the purchase of 3 promising stocks, based on growth prospects and trends in specific sectors.
Its methodology is based on the detailed analysis of revolutionary technologies and expanding sectors: it is no coincidence that since the beginning of the month, the value of the fund (the Ark Innovation ETF) has increased by 17%, demonstrating the effectiveness of the dynamic strategy and proactive of Wood.
Let's see below how the well-known American investor rebalanced her portfolio following the changes in share prices.
2 Stocks to Sell Ark Invest sold a portion of its shares of Tesla and Nvidia in the third quarter, but still remains significantly exposed to both companies.
This move might seem surprising, considering both stocks have seen impressive growth in the first few months of the year, with Tesla shares up 80% and Nvidia shares up 210%.
However, savvy investors like Cathie Wood understand the importance of rebalancing your portfolio to maintain a strong, diversified investment strategy.
This technique is used by institutional investors to realign the portfolio to investment objectives, allowing them to take advantage of discount opportunities.
read also Will the collapse of Nvidia cause the stock bubble to burst? 2 Twilio shares to sell Among the new shares purchased by Cathie Wood, Twilio occupies a prominent place.
Twilio is a leading company in the in-app communications industry, although its name may not be known to the general public.
Twilio's platform provides chat boxes and customized, automatic solutions for businesses (messaging apps or platforms, video platforms, marketing automations via email, telephone, etc.).
The company has over 304,000 active developer accounts on its platform, demonstrating its breadth and relevance in the industry.
Cathie Wood increased her exposure to the stock ahead of the release of third quarter results on Wednesday 8 November.
Revenue for the quarter came in at $1.03 billion, higher than expected and up 5% from a year earlier.
Excluding one-time items, the company earned 58 cents per share.
Twilio said it expects 2023 non-GAAP revenue from operations of between $475 million and $485 million.
Fourth quarter revenues expected between $1.03 and $1.04 billion.
Twilio has consistently topped Wall Street's profit forecasts over the past three quarters.
With a history of success and growing prominence of its solutions in the world of applications, Twilio appears to be a strategic choice for Ark Invest.
Toast Toast offers payment solutions, inventory management, ordering, delivery, lending and other services used by 9% of restaurants in the United States, earning a percentage of each transaction processed by the restaurant business.
During the latest quarter, the company reported a net loss of $31 million (or 9 cents per share), improving from a loss of $98 million a year ago.
Adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) came in at $35 million, higher than the $20 million consensus.
Revenue rose from $752 million to $1.032 billion.
However, Toast shares fell nearly 14% after the financial report (in after-hours trading).
“Our focus on balancing sustained revenue growth with efficiency has led to our seventh consecutive quarter of adjusted EBITDA margin expansion,” CEO Chris Comparato wrote in a note.
Analysts expect a significant reduction in losses in the coming quarters.
If the company can maintain this positive momentum, it could represent an attractive investment opportunity for Ark Invest.
Block Block, a fintech group led by Jack Dorsey that brings together Square, Tidal, Cash App and TBD under a single brand, recently presented its financial data, highlighting a 21% increase in gross profit.
Revenue stood at $5.62 billion in the third quarter of 2023, thanks to solid growth in Cash App and Square revenues, with $44 million in profit on its Bitcoin reserves.
The growth of fintech companies in the third quarter was also aided by strong consumer demand and positive spending.
Despite the positive data, shares have yet to recover from a deep correction which has erased around 40% of its stock market value since February.
However, this circumstance offers investors like Cathie Wood an opportunity to enter at affordable prices.
This investment signals a long-term vision for Ark Invest and offers an interesting outlook for investors following Cathie Wood's moves.
read also 3 shares to buy in November with the buy the dip strategy DISCLAIMER The information and considerations contained in this article must not be used as the sole or main support on the basis of which to make investment decisions.
The reader retains full freedom in his own investment choices and full responsibility in making them, since he alone knows his risk propensity and his time horizon.
The information contained in the article is provided for informational purposes only and its disclosure does not constitute and should not be considered an offer or solicitation to public savings.

Author: Hermes A.I.

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