Cathie Wood Engages in Discount Shopping: Identifies Three Stocks Recently Purchased
Cathie Wood had a bustling day on the trading floor recently, adding to 17 various positions across her aggressive growth ETFs in a single day. Some of her more intriguing purchases included Advanced Micro Devices (AMD), Toast (TOST), and Shopify (SHOP). Let's delve into these stocks.
1. Advanced Micro Devices (AMD)
Don't underestimate the impact of investor interest in AI stocks; it doesn't lift all boats norchip stocks. AMD, despite its struggles, has managed to maintain its business better than its stock chart suggests. In fact, despite a 36% drop over the past year and an 8% slide in 2025, AMD served up impressive fourth-quarter results that far surpassed market darling AI stocks.
exchange-traded funds in a single day.
Revenue surged 24%, the strongest increase in two years, with the data centers segment, now making up half of its business, seeing a 69% increase in revenue. However, AMD's gaming and embedded segments experienced declines of 59% and 13%, respectively. While revenue eclipsed expectations, and net income hit the target, the guidance for revenue to accelerate to 30% for the current quarter represents a 7% sequential dip.
The bearish argument believes that several analysts have lowered income estimates since last week's update. On the other hand, bulls argue that AMD's stock is too inexpensive to ignore, presently trading at a multiple of 23 times this year's projected earnings and less than 18 times next year's forecast.
AMD
2. Toast (TOST)
In stark contrast to AMD's performance, shares of Toast, the popular cloud-based point-of-sale platform for restaurants, have doubled over the past year. The company, with its success in expanding its customer base, is now present in 127,000 locations, up by 28% over the past year. This represents a 13% penetration of the US restaurant market, with further expansion on the horizon.
TOST
Profitability has been no cause for concern, with Toast turning profitable on a reported basis in the last two quarters. However, with a hefty valuation of 45 times forward earnings or 33 times next year's projected net income, some might find it expensive. But, scalability is expected to help future profits exceed revenue growth for the next few years.
3. Shopify (SHOP)
SHOP
Shopify reported its best top-line gain in three years during its fiscal fourth quarter, a 31% revenue improvement. Even more impressive, Shopify's flagship business in North America is booming, while international and offline revenue growth are on the rise as well. This isn't merely a revenue progress story; Shopify also achieved a robust 22% free cash flow margin, making it an attractive choice for investors.
Stock performance post-earnings suggests optimism about its growth prospects, as analysts raised their price targets after the well-received update that sent the shares 3% higher that day.
artificial intelligence (AI) stocks is lifting all ships -- or chip stocks. Advanced Micro Devices is trading 8% lower in 2025 and down a blistering 36% over the past year.
Enrichment Data
Ark Invest's Cathie Wood recently decided to invest in Advanced Micro Devices (AMD), Toast (TOST), and Shopify (SHOP). Here's a quick overview of their financial performances and expert opinions:
seem impressive on the surface. Revenue rose 24%, a far cry from the jumps being posted by the market darling AI stocks, but this was still its strongest year-over-year increase in two years.
Advanced Micro Devices (AMD)
- Recent Performance: Despite a strong earnings report, AMD stock performed poorly, with a 36% decline over the past year and a 8% drop in 2025.
- Analyst Opinion: Views on AMD's performance are mixed. While its stock may be undervalued, concerns about its AI competitiveness with Nvidia and the slower growth in AI chip sales have dampened investor optimism.
Toast (TOST)
- Recent Performance: Toast shares, after more than doubling in the past year, show no signs of slowing down as the company serves a growing number of restaurant clients.
- Analyst Opinion: Toast's high valuation might seem steep, but its scalability and profitability potential make it an attractive growth stock, with Cathie Wood's investment reflecting confidence in its growth trajectory.
the more compelling argument.
Shopify (SHOP)
- Recent Performance: Shopify's strong financial results, driven by its flagship business, have caught the attention of investors, leading to a stock surge of 3% on the day of its earnings announcement.
- Analyst Opinion: The stock's performance post-earnings and analysts' price-target increases suggest strong optimism about Shopify's growth prospects, making it an attractive investment opportunity.
more than doubled over the past year. It's easy to see Toast's appeal, even if you haven't recently dined at one of the many eateries now leaning on Toast to close out customer transactions, manage third-party app orders, and tackle a growing number of behind the scenes operating functions.
- For those considering investing in AMD, it's important to note that the company's stock price has seen a decline of 36% over the past year and 8% so far in 2025. However, its PE ratio is currently at 23 times this year's projected earnings and less than 18 times next year's forecast, which some investors may find attractive. [investing, money, finance, amd, stock price, pe_ratio]
- To attract more investors, some exchange-traded funds (ETFs) are focusing on investing in technology sectors, such as artificial intelligence (AI) stocks. These ETFs can provide diversified exposure to the AI space, making it easier for investors to gain a foothold in the market without needing to research individual companies. [etfs, investing, money, finance, ai]
- To keep up with the changing landscape of finance, it's essential to stay informed about the latest trends and developments in the industry. This includes keeping an eye on companies like Toast, which has seen its share price double over the past year, and Shopify, which reported its best top-line gain in three years during its fiscal fourth quarter. [offline, finance, information, trends, toast, shopify]
- When assessing the worth of a company's stock, it's helpful to consider factors such as revenue growth, profitability, and valuation. For instance, Toast reported a 13% penetration of the US restaurant market and turned profitable in the last two quarters, but its high valuation of 45 times forward earnings or 33 times next year's projected net income may give some investors pause. [revenue growth, profitability, valuation, tost, shopify]