Cathie Wood is one of the market’s best-known aggressive growth investors. The huge returns she delivered as co-founder, CEO, and primary investor of Ark Invest in 2020 helped cement her status as an icon. She struggled for a couple of years after that, but returned to form last year.
She publishes all the stocks she buys and sells after every trading day. She was quieter than usual to kick off the new trading week. Joby Aviation(NYSE: JOBY), GeneDx Holdings(NASDAQ: WGS), and DraftKings(NASDAQ: DKNG) were among the four existing positions she added to on Monday. All three stocks have fallen sharply this year, and Wood doesn’t mind following a stock lower to get a better price. Let’s take a closer look.
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Look! Up in the sky! It’s a bird! It’s a plane! It’s an electric vertical takeoff and landing (eVTOL) aircraft! This may not be a well-known industry, and “eVTOL” doesn’t exactly roll off the tongue. However, there’s a lot of buzz around companies making lightweight, electric flying machines that can carry a small number of passengers on short trips.
This may not seem like an industry with much upside, but there are a couple of key players in this space. Aircraft that take off vertically — like a helicopter — need minimal room to get up in the air and eventually land. Joby is leading the way with a market cap of almost $10 billion, the priciest publicly traded player in this niche. If that seems like a lot, consider that at its high last year, Joby was a $20 billion company.
Joby Aviation stock may not seem like a bargain. It barely broke $50 million in revenue last year. It’s trading for 184 times trailing revenue. Profitability is several years away, even in a bullish scenario. However, the business is starting to scale. Buying more shares in Joby on Monday seems initially to be a shrewd move. The shares moved higher on the day after the market close, following a positive stateside development.
Joby announced on Monday afternoon that it had been selected as a partner in the White House–backed eVOTL Integration Pilot Program. It will be able to start offering its electric air taxi service in 10 different states later this year. It’s another milestone for Joby, and it should pave the way for commercial service in the near future.
One thing you can say about Wood is that she likes most of the genetic sequencing stocks that she comes across. Ark owns several next-gen sequencing specialists, and that naturally includes GeneDx. It’s not a gene-editing specialist like some of her larger investments in this space, but GeneDx is still essential. It offers advanced exome and genome sequencing services to aid in diagnosing rare and inherited diseases.
Three years ago, GeneDx was a penny stock that needed a 1-for-33 reverse stock split to regain exchange compliance. Today, it’s a fast-growing company with narrowing deficits and a market cap approaching $3 billion. It has a top test for pediatricians to help diagnose autism, epilepsy, and developmental delays.
Revenue rose 40% to $427.5 million last year. Its net loss of $21 million is less than half its deficit of $433 million from the prior year. Despite the improving fundamentals, the shares have plummeted 45% since peaking three months ago. Analysts see GeneDx continuing to grow its business, achieving profitability on a reported basis by next year. Every pullback can be an opportunity with that mindset.
The third stock on this list can also claim to be trading for roughly half of last year’s high. DraftKings operates a popular sports wagering platform. It serves 10.9 million customers, each one believing that they have an edge in predicting the outcome of an athletic event.
DraftKings has exploded in popularity. It delivered $6.1 billion in revenue last year, a 27% increase. It’s going all in on gambling. It announced a new app at its 2026 Investor Day presentation last week. DraftKings Sports & Casino will bring all of its sportsbook, predictions, casino, and lottery offerings into a single app tailored to the restrictions in each user’s jurisdiction.
Analysts see revenue growth slowing to a 14% clip over the next two years, but they also see adjusted earnings tripling in that time. You can now buy DraftKings for a modest 13 times next year’s profit target. You can see why Wood is betting on DraftKings. She added to that position last week, too.
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Rick Munarriz has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.
