Cathie Wood is Loading Up on These 5 Stocks

In this article, we discuss the 5 stocks that Cathie Wood is loading up on. If you want to read about some more stocks in the Cathie Wood portfolio, go directly to Cathie Wood is Loading Up on These 10 Stocks.

5. Cloudflare, Inc. (NYSE:NET)

Number of Hedge Fund Holders: 41    

Percentage Increase in Stake During Q2 2022: 33% 

Cloudflare, Inc. (NYSE:NET) owns and runs a cloud platform. According to regulatory filings, ARK Investment Management owned 324,635 shares in Cloudflare, Inc. (NYSE:NET) at the end of June 2022 worth $18 million, representing 0.10% of the portfolio. 

On August 11, Guggenheim analyst John DiFucci initiated coverage of Cloudflare, Inc. (NYSE:NET) stock with a Neutral rating and a price target of $82, noting that the firm was trading at a premium to peers. 

At the end of the second quarter of 2022, 41 hedge funds in the database of Insider Monkey held stakes worth $541 million in Cloudflare, Inc. (NYSE:NET), compared to 44 in the previous quarter worth $1.2 billion.

In its Q1 2022 investor letter, Baron Funds, an asset management firm, highlighted a few stocks and Cloudflare, Inc. (NYSE:NET) was one of them. Here is what the fund said:

“Cloudflare, Inc. (NYSE:NET), another new purchase during the quarter, is a web infrastructure and website security provider. Cloudflare disrupts legacy networking vendors by enabling customers to rent their network solutions in the cloud (and pay for usage) instead of buying firewalls, load balancers and secure web gateway devices. Using a global network in over 100 countries, Cloudflare delivers content and security within 50 milliseconds of 95% of the internet-connected population in the world. Shares contributed 12bps to results on impressive fourth quarter earnings as it continues to successfully layer high-value services such as zero trust, network services, and edge programmability on top of its modern global network. The company is attracting a broader set of investors as Cloudflare now matches durable 50%-plus top-line growth (this was the fifth straight quarter of 50%-plus revenue growth, and 56% current bookings growth suggests strong durability into 2022) with positive operating margins and break-even free cash flow. We believe that Cloudflare will benefit from long-duration of growth disrupting a $100 billion addressable market across application services, network services, and zero-trust services.”