Cathie Wood, CEO of Ark Invest, remained quite engaged throughout January. On the last trading day of the month, she opted to increase her stakes in eight different portfolios while trimming just three.
On Friday, some noteworthy stocks she added include Amazon (NASDAQ:AMZN), Robinhood Markets (NASDAQ:FOOD), and Coinbase (NASDAQ:COIN). Interestingly, all three of these stocks saw declines that day. Let’s delve a bit deeper into her latest investments.
Amazon, the largest online retailer in the U.S., is set to report its fourth-quarter earnings on Thursday. The company’s guidance appears reasonable, particularly given the current economic environment.
Amazon is anticipating net sales in the range of $206 billion to $213 billion for the last quarter of 2025, reflecting a potential increase of 10% to 13% compared to the same time frame last year. When it comes to operating income, estimates are less precise; Amazon aims for figures between $21 billion and $26 billion, signifying a decline of at least 1% and up to 23% year-over-year. Though not officially confirmed, analysts predict earnings per share to rise by about 5% to $1.95.
Over the years, Amazon’s sales growth has hovered in the low teens. From 2022 onward, the company’s net sales growth—recording 9%, 12%, and 11%—has been among the slowest in its three-decade history. However, if they meet the optimistic end of their fourth-quarter predictions, the full-year results could inch closer to 13%.
Despite concerns over stagnant sales growth, investors seem relatively unfazed. Amazon’s cloud service, Amazon Web Services (AWS), has been a significant profit driver. Though it makes up just 22% of total sales, it contributed to two-thirds of net operating income.
Amazon’s stock performance has been relatively stagnant, seeing only a 2% rise over the past year, trailing behind the market. A strong earnings report could alter this trend. Interestingly, Wood’s decision to invest in Amazon just days before a crucial quarterly update suggests she holds a strong belief in its upcoming performance.
Meanwhile, the cryptocurrency market is experiencing turbulence, which may impact Robinhood and Coinbase, the next two stocks Wood acquired. Originally rooted in commission-free stock trading, Robinhood now sees a whopping 78% of its trading revenue coming from options and cryptocurrencies.
Bitcoin (Cryptocurrency: BTC) has plummeted 40% since its peak in October. Wood’s investment in Robinhood and Coinbase, coinciding with this market downturn, seems risky; as of Sunday evening, Bitcoin was down 10% from the previous week’s close.
Robinhood is working to retain its 26.89 million funded accounts amid this challenging time and is expanding its offerings. Recently, they’ve formed partnerships to enter into futures and prediction markets. Additionally, they’ve announced plans to venture into tax preparation and estate planning.
Coinbase, on the other hand, relies even more heavily on the cryptocurrency market. Since Bitcoin’s peak, Coinbase’s share value has decreased by half, significantly outpacing the drop of major cryptocurrencies.
Coinbase is scheduled to announce its earnings after markets close next Thursday, one week after Amazon’s report. Investors are preparing for a colder crypto landscape, with analysts expecting a dip in fourth-quarter sales by 18% and a staggering 78% drop in earnings per share. Despite not having the same flexibility as Robinhood to shift focus when cryptocurrency prices fall, Coinbase is more positioned to benefit when there’s a market rebound.
Before considering an investment in Amazon, it’s vital to weigh some additional points:
Our analysts have disclosed what they consider the 10 best stocks to consider now, and interestingly, Amazon doesn’t make that list. These stocks are deemed to have strong potential for returns in the upcoming years.
Additionally, it’s worth mentioning Netflix, which was recommended in December 2004. An investment of $1,000 then would now be worth around $450,256! Or consider Nvidia, which if one had invested in it back in April 2005, the initial $1,000 would have grown to $1,171,666!
It’s also important to note that the total average return of Stock Advisor is 942%, which significantly surpasses the S&P 500’s 196% return.
*Stock Advisor will return on February 2, 2026.
The analyst has no positions in the stocks mentioned. The Motley Fool has investments in and recommends Amazon and Bitcoin, as well as advising clients to consider Coinbase Global.
