Cathie Wood has access to billions of dollars when she buys stocks for her ARK Invest exchange traded funds (ETFs). It is not unusual for its ETFs to recover tens of thousands, if not hundreds of thousands of shares of a single stock in a day.
The good news is, you don’t need a lot of money to invest in the same stocks that Wood loves. You can follow in the footsteps of the CEO of ARK Invest with just a few hundred dollars. Here are the best Cathie Wood stocks to buy with just $ 300 right now.
Less than $ 140 will buy you a share of the leader in virtual care – Teladoc Health (NYSE: TDOC). And you can get it for a reduced price compared to the start of this year – healthcare stock is more than 50% lower than its 2021 high.
One of the reasons for this drop in the share price is that Teladoc’s growth rate is slowing. The company saw 3.19 million visits in the first quarter and expects an average just a little above that level over the next three quarters. However, it’s no surprise that its growth rate is leveling off after the explosion in telehealth visits last year due to the COVID-19 pandemic.
Teladoc should have enough space to grow further in the long term. I particularly like the opportunities for the company to sell its products and services to existing customers. It also has huge potential outside of the United States.
Wood remains a big fan of Teladoc despite its stock market performance since the start of the year. Three of its ETFs – ARK Genomic Revolution FNB, ETF ARK Innovation, and Next Generation ARK Internet ETF – enriched their positions in the virtual care stock in May.
Pick up a share of Unity software (NYSE: U) will cost you around $ 90. Like Teladoc, this stock has sold significantly over the past three months, in part due to the company’s slowing growth.
However, we are not talking about slow growth. Unity expects its revenue to grow nearly 30% in 2021. While this is lower than its 43% growth last year, it’s not all down to the company. Unity predicts headwind of around $ 30 million related to Applethe implementation of changes to its identifier for advertisers (IDFA).
Unity is the best virtual reality (VR) content creation platform. It is arguably the best stock of virtual reality on the market today. Clearly, gaming is the biggest market for Unity. However, it also has clients in other industries, including automotive manufacturing and construction.
Two of Wood’s ETFs actively bought shares of Unity in May – ARK Innovation ETF and ETF ARK Autonomous technology and robotics. I suspect these purchases will pay off in the long run.
After purchasing one share each of Teladoc and Unity, you are left with about $ 70 of your initial $ 300. This is more than enough to add a share of Pinterest (NYSE: PINS) to your wallet. Shares of the image-sharing social media company are currently trading at less than $ 60 a share.
I’m probably going to look a bit like a broken record here, but Pinterest shares are trading over 30% below their 2021 high. Part of the problem for the company is that its user growth is slowing. And much of its growth now comes from international markets, which generate lower Average Revenue Per User (ARPU).
However, there’s a pretty good argument to be made that Pinterest’s biggest opportunity is outside of the U.S. The company has already increased its ARPU for international users. It currently only shows ads in 29 countries. Pinterest clearly has a major revenue growth avenue ahead of it in international markets.
Of these three stocks, Pinterest is the only one that Wood sells instead of buying. ARK Next Generation Internet ETF has sold over a million shares of Pinterest so far this month. However, while the company doesn’t rank as high as Wood’s favorites as it once did, I think it remains a solid choice for long-term investors.
This article represents the opinion of the writer, who may disagree with the “official” recommendation position of a premium Motley Fool consulting service. We are motley! Questioning an investment thesis – even one of our own – helps us all to think critically about investing and make decisions that help us become smarter, happier, and richer.