Ark Invest has recently expanded its holdings in three stocks that are currently trading significantly lower than their highs from last year.
Figma, CoreWeave, and Recursion Medicine have all seen notable drops, with their current values down 52%, 82%, and 72%, respectively, since their peaks in 2025. It’s hard to say if jumping in now is a savvy move or a misstep. Cathie Wood, co-founder and CEO of Ark Invest, seems to think it’s a buying opportunity. After two of these stocks experienced drops of more than 8% in one trading session, she decided to increase Ark’s stakes in each of them. Let’s unpack what’s going on with these stocks.
1. Figma
Cloud-based services, once market favorites, are facing increasing scrutiny lately. There are concerns, especially with the rapid advancements in artificial intelligence (AI), that premium offerings could soon be overshadowed by cheaper, AI-driven alternatives. As a result, investors are pulling back from Software-as-a-Service (SaaS) stocks, including Figma, which has also faced pressure.
Figma isn’t new to the AI scene. It’s an AI-powered platform designed to streamline the design process for digital products. Initially, it launched at $33 last summer and soared to $143 before hitting a wall, now sitting just above $26 after a bumpy IPO experience.
I might not agree with all of Cathie Wood’s buying moves, but I see potential in this one as recent financial reports have shown some positivity. Still, the narrative of Figma would be more compelling had it begun earlier this year.
The last earnings report was somewhat disappointing, showing just a 38% revenue growth from its first to second quarter of 2025, down from previous higher rates. The outlook is also cautious, forecasting a 35% increase for the last quarter of the year, indicating a slowing trend.
Yet the reality is more complex. Even though margins have tightened, Figma’s fourth-quarter revenue showed a 40% uptick. The company has been demonstrating resilience, with a net dollar retention rate at 136%, marking its strongest performance in over two years. Despite recent volatility, Figma’s stock managed a five-day upward trend. It might just be a bargain opportunity below the IPO price, but who knows how long that will last?
2. Coreweave
CoreWeave, which made waves with its IPO at $40 and peaked at $187 during the summer, is not as severely affected as Figma. It’s trading under half its highest value but maintains potential in the AI space. With resource-heavy AI workloads demanding optimized data centers, CoreWeave remains well-positioned.
Sales figures have skyrocketed, showing sales revenue tripling, and analysts anticipate further growth by 2026. The company is set to disclose its quarterly results this Thursday, and given a strong backlog of orders and sustained demand for AI, it might be worth looking into.
3. Recursion Medicine
Three summers ago, Nvidia made headlines by investing $50 million in Recursion Pharmaceuticals, drawing attention to the company, which focuses on using AI to innovate drug discovery. Although that investment temporarily boosted Recursion’s stock price, the landscape has changed since then.
Recent filings indicated that Nvidia has sold all of its shares in Recursion, which didn’t appear to impact the stock prices as much as one might have expected. Initially, shares dipped 12% but later closed up 2%. It seems Nvidia’s stake didn’t provide the intended support, as Recursion has lost two-thirds of its value in the last year, with rising losses becoming a growing concern. While the stock price is currently much lower than it was not long ago, that doesn’t necessarily mean it’s less risky to invest now.
