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Cathie Wood added to her portfolio on Thursday by purchasing shares in The Trade Desk, WeRide, and Pure Storage.
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The Trade Desk has seen a significant decline of 66% this year, but there are hints that perhaps the worst is behind it for investors.
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WeRide has faced considerable volatility, yet there’s a sense that it’s starting to recover.
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10 stocks we like better than The Trade Desk.
On Thursday, Cathie Wood bought just five shares across her entire Ark Investment firm, which she founded and where she acts as CEO and chief investment officer. Three investments particularly caught my attention.
Ark Invest has increased its stakes in The Trade Desk (NASDAQ:TTD), WeRide (NASDAQ:WRD), and Pure Storage (New York Stock Exchange: PSTG). The first two companies are trading at notably low valuations for 2025, while Pure Storage has bounced back from its previous downturn. Let’s dive deeper into these three investments, all of which saw gains on the trading day.
If you were to meet someone from the past who knows about the market, they’d likely find it hard to believe that The Trade Desk lost two-thirds of its value. This ad tech leader had a solid standing for years, but signs of trouble emerged earlier this year.
The Trade Desk missed its guidance in February, marking the first such occurrence in 33 quarters since going public. Since then, three quarterly updates this year haven’t managed to calm investors’ worries.
Growth for The Trade Desk has slowed down significantly. Traditionally, the company reported consistent revenue growth exceeding 20%, but recent updates showed year-over-year increases in the high teens. This latest forecast suggests a mere 13% revenue growth.
Despite the struggles, The Trade Desk’s platform is still sought after by marketers who wish for an edge in targeting their audiences. The customer retention rate remains impressively high at over 95%, a trend that’s persisted for 11 years. While there have been issues this year, the use of artificial intelligence in its offerings may help regain market leadership.
If you hesitated to consider The Trade Desk due to concerns about its valuation, it might be worth a second look. Its anticipated P/E ratio has dropped to the low 10% range, aligning with its sales growth. Although Wood isn’t known as a value investor, the chance to invest at an appealing price could make waiting for a rebound worthwhile.
WeRide, focused on self-driving technology, has had its share of ups and downs since going public 14 months ago at $15.50 a share. The stock saw a remarkable increase of 81% on its first day of trading this year following an investment from Nvidia.
With Nvidia’s backing, things seem to be looking better. WeRide’s stock surged to $44 in February but then dropped by 79% from that peak. Even though WeRide’s stock took a hit, its business fundamentals continue improving—revenue surged by 144% in the last quarter, marking its largest growth ever. Additionally, the company has received approvals for self-driving vehicles in eight countries, with recent licenses issued for driverless robotaxis in Abu Dhabi.
Although Nvidia’s investment stake is small, it raised optimism around WeRide. Yet, interestingly, the current stock price is still below levels seen before the Nvidia deal was made public, presenting potential for patient investors in the self-driving vehicle sector.
Lastly, let’s touch on Pure Storage. This company provides data storage solutions that utilize flash memory, which, when combined with its proprietary software, is remarkably effective.
Pure Storage’s sales climbed 16% in the most recent quarter—though this might not seem significant, it represents the company’s second best performance in the last three years. For the second consecutive year, its sales growth has accelerated, with further increases anticipated next year. While it trades at over 30 times its expected earnings, Pure Storage’s unique leadership in a growing market may justify the premium.
Before making any decisions about investing in The Trade Desk, keep the following in mind:
Investors have some promising options available now, and The Trade Desk wasn’t included among them. These selected stocks could potentially offer substantial returns in the coming years.
Consider the past performance of stocks like Netflix, which has seen massive returns since being recommended, or Nvidia, which would have yielded impressive returns to earlier investors.
It’s worth noting that overall, the stock advisory service indicated an average return that significantly outperformed the S&P 500 over the years.
Investing in stocks can be unpredictable, and seasoned investors know the value in examining various options before settling on their choices.
