In a volatile market, savvy investors like Cathie Wood take the opportunity to accumulate shares of companies with long-term potential. As the founder and CEO of ARK Invest, Wood is known for her high-conviction strategy centered on disruptive innovation. Her fund invests in fintech, genomics, artificial intelligence (AI), and other disruptive technologies that she believes will provide exponential growth in the long run.
Her latest investments, totaling roughly $19.1 million across five stocks, show that she is once again leaning into beaten-down growth stocks and emerging disruptors even in such an uncertain market.
On March 5, ARK bought about 183,933 shares of Robinhood Markets (HOOD) worth roughly $15.12 million. Robinhood now holds 4.3% weightage in the ARK Blockchain & Fintech Innovation ETF (ARKF) and 4.8% in the ARK Next Generation Internet ETF (ARKW).
Valued at $69.4 billion, Robinhood is an online financial services company that allows customers to buy and sell stocks, ETFs, options, and cryptocurrencies via its mobile app and website. The company has been seeking to diversify its offerings beyond meme-stock trading, including options, retirement accounts, credit cards, and even overseas markets. ARK appears to be betting that Robinhood can evolve into a full-scale financial ecosystem. However, the stock remains sensitive to trading volumes and crypto activity, making it a risky bet for investors.
Overall, Robinhood gets a “Moderate Buy” rating on Wall Street. While HOOD stock is down 33% so far this year, analysts see potential upside of 63% from current levels if it hits its average price target of $125.65. Plus, the high price target of $180 implies the stock could surge by as much as 133.5% over the next year. Among the 22 analysts covering the company, 15 give it a “Strong Buy” rating, two recommend a “Moderate Buy,” four say it is a “Hold,” and one says it is a “Strong Sell.”
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Cathie Wood Stock #2: DraftKings (DKNG)
ARK also added approximately 58,048 shares of DraftKings (DKNG) valued at around $1.48 million. DraftKings now holds 1.9% weightage in the ARK Blockchain & Fintech Innovation ETF and 1.05% in the ARK Next Generation Internet ETF. The online sports betting leader continues to benefit from state-by-state legalization across the U.S., expanding its total addressable market. With steady revenue growth, DraftKings has been focusing on improving profitability through disciplined marketing spending and stronger customer retention metrics.
In 2025, the company reported positive net income for the first time, driven by a 27% increase in revenue. While competition in the betting space remains intense, ARK’s buy suggests confidence in the long-term digital entertainment space.
Overall, DraftKings gets a “Strong Buy” rating on Wall Street. While DKNG stock is down 29.4% so far this year, analysts see potential upside of 45% from current levels if it hits its average price target of $36.41. Plus, the high price target of $53 implies the stock could surge by as much as 110.7% over the next year. Among the 34 analysts covering the company, 25 give it a “Strong Buy” rating, three recommend a “Moderate Buy,” five say it is a “Hold,” and one says it is a “Strong Sell.”
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Cathie Wood Stock #3: Cerus Corp. (CERS)
ARK’s purchase of 612,501 shares of Cerus Corp. (CERS), worth about $1.37 million, highlights Wood’s continued interest in healthcare innovation. Cerus now holds 1.2% weightage in the ARK Genomic Revolution ETF (ARKG) and 0.30% in the ARK Innovation ETF (ARKK).
Valued at $370 million, Cerus is a small-cap healthcare innovation company specializing in pathogen reduction technology for blood safety, a market with high global demand and long-term regulatory benefits. Its main product, the INTERCEPT Blood System, is used by blood centers and hospitals to reduce harmful viruses, bacteria, and other pathogens in blood components like platelets and plasma before transfusion, helping lower the risk of infections from blood transfusions. At the start of 2025, the company proudly announced that “20 million transfusible doses of INTERCEPT-treated blood components have been made available to patients.” While Cerus fits ARK’s pattern of investing early in companies with disruptive medical technologies, it is still a risky penny stock.
Overall, Cerus stock gets a “Moderate Buy” rating on Wall Street. While CERS stock is down 2.03% so far this year, analysts see potential upside of 159% from current levels if it hits its average and high price target of $5.00. Among the four analysts covering the company, two give it a “Strong Buy” rating and two say it is a “Hold.”
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Cathie Wood Stock #4: Compass Pathways (CMPS)
ARK also bought roughly 100,264 shares of Compass Pathways (CMPS), valued at about $706,861. Compass holds 1.88% in the ARK Genomic Revolution ETF.
Valued at $747.4 million, Compass Pathways focuses on creating innovative mental health treatments, most notably COMP360, an investigational psilocybin-based therapy targeted at assisting people with treatment-resistant depression and PTSD (post-traumatic stress disorder). The company is currently conducting many late-stage clinical trials to assess COMP360 efficacy. Mental health remains a massive unmet need globally, and breakthrough therapies could unlock substantial long-term value if clinical trials succeed and regulatory approvals follow.
Overall, Compass stock gets a “Strong Buy” rating on Wall Street. While CMPS stock is up just 0.46% so far this year, analysts see potential upside of 233% from current levels if it hits its average price target of $21.92. Plus, the high price target of $70 implies the stock could surge by as much as 963.8% over the next year. Among the 13 analysts covering the company, 10 give it a “Strong Buy” rating, one says it is a “Moderate Buy,” and two say it is a “Hold.”
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Cathie Wood Stock #5: Canton Strategic Holdings (CNTN)
ARK’s purchase of 93,900 shares of Canton Strategic Holdings (CNTN), worth about $439,452, signals interest in a smaller, early-stage opportunity. Canton holds 0.19% weightage in the ARK Blockchain & Fintech Innovation ETF.
Canton Strategic Holdings, formerly a clinical-stage biotech company called Tharimmune, rebranded itself in February with a new strategic focus. Valued at $230 million, it now manages a digital asset treasury centered on the Canton Network, which includes acquiring Canton Coin and managing blockchain infrastructure such as a Super Validator on the network. This move shifted its primary identity from a biotech-only firm toward a hybrid model blending its legacy research with digital-asset and blockchain investment activities.
Small-cap companies can offer explosive upside if their business models scale successfully. It aligns with Wood’s strategy of identifying emerging disruptors before they gain widespread attention.
It is important to note that Canton’s rebranding doesn’t yet reflect in Barchart's CNTN profile page.
Should You Follow Wood’s Decision to Buy These Stocks Now?
Cathie Wood’s investments often attract attention because of her strong track record of identifying disruptive growth stocks early, including her recent 210k shares investment in a rising AI bet.
However, ARK’s strategy is usually high-risk and long-term focused, often ignoring the short-term noise. Investors who want to mirror her trades must analyze their own risk tolerance, time horizon, and diversification strategy.
On the date of publication, Sushree Mohanty did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. This article was originally published on Barchart.com
