Cathie Wood is betting on technology companies with disruptive innovations that are expected to kick start the fourth industrial revolution globally. Given the market’s current high volatility, Wood has hedged a portion of her portfolio through investments in large-cap tech stocks with impressive performance histories, namely Facebook, Inc. (NASDAQ:), Netflix, Inc. (NASDAQ:), and Baidu Inc. (NASDAQ:). Read on to learn why these stocks could be solid bets now.Cathie Wood has been betting on the evolution of technology since 2014 through her flagship Ark Next Generation Internet ETF (ARKW). At least 80% of the fund’s assets are invested in companies that have direct exposure to cloud computing, e-commerce, artificial intelligence and blockchain technology. The actively managed ETF was one of the most profitable Ark ETFs in 2020. The ETF gained 183.3% over the past year. As one of the most profitable investors this century, Wood places great substantial importance on to large-cap companies with immense market reach.
While these companies tend to grow at a slower pace versus their compared to small- and mid-cap counterparts, the blue-chip technology companies tend to be market movers based on their disruptive innovations.
With the internet and technology impacting most industries, companies in this space have outperformed large-cap companies in general over the past year. This is evidenced by the Nasdaq Composite’s 63.7% gains over the past year compared to S&P 500’s 48.8% returns over this period. Technology (or internet) giants Facebook, Inc. (FB), Netflix, Inc. (NFLX), and Baidu Inc. (BIDU) are among Wood’s top picks to capitalize on the impending technology revolution. We think their solid fundamentals and industry tailwinds make these stocks good bets for individual investors also.
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