Cathie Wood Stock Portfolio: 5 Newest Stock Picks This Year

In this article, we discuss Cathie Wood’s 5 new stock picks. If you want to read our detailed analysis of these stocks, go directly to Cathie Wood Stock Portfolio: 10 Newest Stock Picks This Year.

5. UiPath Inc. (NYSE:PATH)

Number of Hedge Fund Holders: 46

AI company UiPath Inc. (NYSE:PATH) ranks fifth on the list of Cathie Wood’s new stock picks. The New York-based company creates software for robotic process automation (RPA) that is used to provide business and cognitive processes in finance, operations, customer service, and other industries.

Based on Cathie Wood’s SEC 13F filings, the hedge fund owned 11,875,886 shares of UiPath Inc. (NYSE:PATH) worth $806 million as of August 5, 2021. This represents 1.5% of the total holdings of ARK Investment Management.

On September 17, Barclays analyst Raimo Lenschow upgraded UiPath Inc. (NYSE:PATH) to Overweight from Equal-Weight and increased his price target for the stock to $71 from $70. 

In the second quarter of 2021, UiPath Inc. (NYSE:PATH) reported an EPS of $0.01, beating estimates by $0.07. The company’s revenue in the second quarter was $195.5 million, an increase of 40% year over year, and beat revenue estimates by $9.03 million. 

In the Q2 2021 investor letter of ClearBridge Investments, the fund mentioned UiPath Inc. (NYSE:PATH), and discussed its stance on the firm. Here is what the fund said:

“We participated in the IPO of UiPath, a developer of software for robotic process automation that uses AI, natural language processing and design to streamline complex processes across a variety of technology environments. The company is an industry leader with a superior solution for leveraging software to optimize workloads. Organizations around the world are beginning to understand the power of automation, with momentum picking up toward fully automating business processes, a $60 billion market today that could grow to $200 billion or more by 2030. UiPath has a unique pricing model, broad partner ecosystem and thoughtful management team supporting one of the strongest growth profiles in technology. Risks we are watching include a partial cloud transition ahead and increased competition from larger software platforms over time.”