In this piece, we will cover Cathie Wood’s 10 Stock Picks with Huge Upside Potential.
In a CNBC Squawk Box Interview on January 16, 2026, Cathie Wood outlined her outlook for 2026, a year in which she sees a concentrated set of stocks with significant upside potential.
The ARK Invest CEO looked back at 2025, discussing sharp volatility, trade turmoil in April, and the government shutdown. Despite macroeconomic headwinds, ARK Invest funds ranked among Morningstar’s top performers.
The firm’s investment strategy played out well, as it aggressively reallocated capital toward the stocks in which it had greates confidence during corrections. With these moves, Cathie Wood emphasized valuations could stumble even if innovation-driven stocks remain strong in terms of performance, comparing the trend to the late 1990s and early 2000s.
Looking ahead, Wood expects valuation multiple compression in 2026, based on ARK’s bottom-up analysis. However, she remains constructive on the macro backdrop. She discussed falling oil and housing prices, homebuilders’ price cuts, and significantly lower labor-cost growth (1.2% YoY), with the most recent quarter turning negative. Wood argues that these factors provide evidence of the build-up of deflationary pressures.
Sector-wise, she favors technology most. In particular, she cited ARK’s five focus platforms: robotics, energy storage, artificial intelligence (AI), blockchain technology, and multi-omic sequencing in healthcare.
With this backdrop in mind, let’s now move on to our list of Cathie Wood’s 10 stock picks with huge upside potential.
Our Methodology
To curate the list of Cathie Wood’s 10 stock picks with huge upside potential, we scanned across ARK Investment Management’s 13-F filings, then narrowed down the list based on the upside potential of the stocks as of market close on February 2, 2026. We also ensured that these stocks have broad analyst coverage and strong hedge fund sentiment. To assess hedge fund sentiment, we relied on Insider Monkey’s hedge fund database, which tracks 978 stocks as of Q3 2025. The list is ranked in ascending order based on each stock’s upside potential.
We have added the performance of each stock from the end of Q3 2025 through February 2, 2026, providing readers with insight into how ARK Invest’s portfolio picks have performed to date.
Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 427.7% since May 2014, beating its benchmark by 264 percentage points (see more details here).
10. Block, Inc. (NYSE:XYZ)
Number of Hedge Fund Holders: 64
Upside Potential: 40.70%
Share Price Performance (Sep 30 – Feb 2): -16.42%
Block, Inc. (NYSE:XYZ) is one of Cathie Wood’s 10 stock picks with huge upside potential.
As of February 2, 2026, Block, Inc. (NYSE:XYZ) enjoys the confidence of 70% of analysts who remain bullish on the stock, with consensus indicating a 40.70% upside potential.
The most recent analyst opinion was from Cantor Fitzgerald on January 27, 2026, when the firm initiated coverage of Block, Inc. (NYSE:XYZ). The investment firm issued an ‘Overweight’ rating with an $87 price target. The firm’s confidence stems from the belief that the early stages of the company’s turnaround are largely complete and that operational momentum is beginning to build.
Cantor also reflected on Block’s new product initiatives, viewing them as evidence that the company’s innovation engine is firing on all cylinders. Thus, investor focus is shifting toward execution from restructuring, the analyst noted. The investment firm remains confident in the company’s medium-term guidance, though it cautions that a sustained stock re-rating remains contingent on Block, Inc. (NYSE:XYZ)’s ability to deliver consistent performance across its growing ecosystem.
Meanwhile, on January 22, 2026, Reuters reported that Citigroup analysts are increasingly favoring U.S. fintechs, with the sector gaining relative advantage as Washington takes a turn toward a more affordability-driven agenda for the November 2026 midterm elections. As policy pivots toward consumer-friendly credit and small-business services, Citi views Block, Inc. (NYSE:XYZ) as a key beneficiary. Following the stock’s more than 23% decline in 2025, the firm indicates a potential sentiment recovery if the company’s execution improves amid a more favorable regulatory environment.
Block, Inc. (NYSE:XYZ) focuses on developing integrated financial ecosystems through Square and Cash App. The company offers payments, software, hardware, and consumer financial tools, including peer-to-peer payments, cards, and investing services.
9. GitLab Inc. (NASDAQ:GTLB)
Number of Hedge Fund Holders: 51
Upside Potential: 41.40%
Share Price Performance (Sep 30 – Feb 2): -21.58%
GitLab Inc. (NASDAQ:GTLB) is one of Cathie Wood’s 10 stock picks with huge upside potential.
On January 23, 2026, TipRanks reported that speculation around potential technology-sector consolidation is emerging. Citing Barron’s column by Jacob Sonenshine, the source cited a batch of software companies that could emerge as buyout candidates. With investors looking for opportunities to benefit from deal-related upside, GitLab Inc. (NASDAQ:GTLB) was included on the list of buyout candidates, alongside C3 AI, Bill Holdings, and Datadog. Previously, Reuters reported that exploratory sale discussions were taking place across parts of the sector in November 2025. At present, strategic buyers are increasingly active as valuation resets and platform-scale assets come into focus.
Meanwhile, the company reported product momentum earlier in the month, announcing on January 15, 2026, the general availability of its GitLab Duo Agent Platform. With this move, the company expands agentic AI capabilities across the DevSecOps lifecycle and targets the so-called AI productivity paradox by extending automation beyond code generation into planning, security, CI/CD, and code review workflows. With this platform, GitLab Inc. (NASDAQ:GTLB) integrates prebuilt, customer, and external AI agents within its DevOps workflows. At the same time, a new usage-based credit model reduces adoption friction for existing customers.
With its intelligent DevSecOps platform, GitLab Inc. (NASDAQ:GTLB) helps organizations plan, build, secure, and deploy software faster. As a result, the company improves developer productivity, operational efficiency, and security compliance across the entire software development lifecycle.
8. AeroVironment, Inc. (NASDAQ:AVAV)
Number of Hedge Fund Holders: 37
Upside Potential: 46.50%
Share Price Performance (Sep 30 – Feb 2): -14.26%
AeroVironment, Inc. (NASDAQ:AVAV) stands out as one of Cathie Wood’s 10 stock picks with huge upside potential.
As of February 2, 2026, nearly all analysts covering AeroVironment, Inc. (NASDAQ:AVAV) remain bullish, with a 46.50% consensus upside potential. Analyst sentiment remains strong amid a series of developments late in January that further draw investor attention to the stock.
On January 28, 2026, KeyBanc turned its attention to AeroVironment, Inc. (NASDAQ:AVAV), raising its price target from $285 to $330, while reiterating an ‘Overweight’ rating. The update came as the firm revised its outlook on space and defense technology stocks following recent events and headlines. KeyBanc expects the attractive macro environment to persist through 2026, supporting growth opportunities and potential re-ratings across the group.
On the same day, AeroVironment, Inc. (NASDAQ:AVAV) announced that its UES division was awarded a $75 million U.S. Air Force task order under the Functional Responsive Experimentation for Systems and Humans (FRESH) program. With the 60-month contract, the company expands its ongoing work with the Air Force Research Laboratory. The company will focus on biotechnology, advanced polymers, responsive materials, and AI-enabled research to modernize air, space, and weapons systems.
AeroVironment, Inc. (NASDAQ:AVAV) focuses on designing and producing multi-domain robotic systems. The company also conducts advanced customer-funded research through its MacCready Works segment for defense and aerospace applications.
7. Robinhood Markets, Inc. (NASDAQ:HOOD)
Number of Hedge Fund Holders: 77
Upside Potential: 55.30%
Share Price Performance (Sep 30 – Feb 2): -37.20%
Robinhood Markets, Inc. (NASDAQ:HOOD) stands out as one of Cathie Wood’s 10 stock picks with huge upside potential.
On February 2, 2026, falling cryptocurrency prices and concerns surrounding lower prediction market activity weighed on the stock, driving Robinhood Markets, Inc. (NASDAQ:HOOD) shares downward. The stock declined by more than 10% during the day, bringing the year-to-date decline to 20%. The stock closed at $89.91, down from $99.48 in the previous session.
On the same day, Bitcoin fell to a 10-month low near $74,500, rattling digital-asset traders. However, Bitcoin recovered later in the day. This is highly relevant for Robinhood Markets, Inc. (NASDAQ:HOOD), whose platform supports trading in over 50 crypto tokens and whose revenue is closely tied to crypto prices and trading volume.
In addition to crypto volatility, a seasonal headwind associated with the end of the football season was highlighted by Piper Sandler on the same day. The firm cited prediction markets as Robinhood Markets, Inc. (NASDAQ:HOOD)’s fastest-growing revenue stream, with football driving nearly half of Kalshi’s volume since August 2025. Despite this, the investment firm reiterated its ‘Buy’ rating on the stock with a $155 price target, attributing its stance to a pipeline of global sporting events and elections later in the year.
On the same day, Mizuho revisited Robinhood Markets, Inc. (NASDAQ:HOOD), reiterating an ‘Outperform’ rating with a $172 price target. The investment firm believes the company’s UK launch of a zero-fee stocks and shares ISA with a 2% cash bonus before April 5, 2026, could prove to be a key catalyst for international expansion.
Robinhood Markets, Inc. (NASDAQ:HOOD) is known for operating a digital financial platform that offers commission-free trading in stocks, ETFs, options, and cryptocurrencies. The company also offers cash management services, targeting retail investors through a mobile-first, simplified investing experience.
6. Pinterest, Inc. (NYSE:PINS)
Number of Hedge Fund Holders: 66
Upside Potential: 59.10%
Share Price Performance (Sep 30 – Feb 2): -31.61%
Pinterest, Inc. (NYSE:PINS) is one of Cathie Wood’s 10 stock picks with huge upside potential.
As of February 2, 2026, over 70% of analysts covering Pinterest, Inc. (NYSE:PINS) remain bullish, with a 59.10% consensus upside potential.
The recent analyst update came from Roth Capital on January 30, 2026, when the firm decreased its price target on Pinterest, Inc. (NYSE:PINS) from $34 to $29, while reiterating a ‘Neutral’ rating. The investment firm remains bullish on the stock amid year-to-date weakness, seeing a strategic buying point. At the same time, the firm cited the company’s in-line Q4 results. Meanwhile, it believes the recent layoffs, though significant, may help improve investor sentiment by streamlining operations.
On the same day, Pinterest, Inc. (NYSE:PINS) saw HSBC’s downgrading the stock from ‘Buy’ to ‘Hold’ with a $24.90 price target, down from $34.50. The firm sees a softer near-term outlook, describing the recent workforce reduction just ahead of Q4 earnings as a sharp reversal from prior hiring trends. At the same time, HSBC pointed to unclear revenue and cost impacts, alongside the company’s sales performance, which has diverged from that of peers considered AI winners. Thus, the investment firm advised caution around Pinterest’s competitive positioning.
Pinterest, Inc. (NYSE:PINS) operates a photo-sharing platform that enables users to discover, curate, and manage themed image collections. The company combines social discovery with visual search for inspiration and idea sharing worldwide.
5. DraftKings Inc. (NASDAQ:DKNG)
Number of Hedge Fund Holders: 68
Upside Potential: 64.10%
Share Price Performance (Sep 30 – Feb 2): -26.68%
DraftKings Inc. (NASDAQ:DKNG) is one of Cathie Wood’s 10 stock picks with huge upside potential.
As of February 2, 2026, over 80% of analysts covering DraftKings Inc. (NASDAQ:DKNG) remain bullish, with a consensus upside potential of 64.10%.
The recent analyst action came ahead of Q4 results, scheduled to be announced on February 12, 2026. On January 30, 2026, Rothschild & Co reduced its price target on DraftKings Inc. (NASDAQ:DKNG) from $37 to $35, while reiterating a ‘Neutral’ rating. According to the state-level fourth-quarter data, the firm projects potential revenue misses and a moderation in growth for 2026. Yet, online sports betting volumes are expected to remain strong with the FIFA World Cup just around the corner.
Meanwhile, on the same day, Stifel cut its price target on DraftKings Inc. (NASDAQ:DKNG) from $46 to $44, while reiterating a ‘Buy’ rating. The firm cited the company’s short-term appeal amid NBA handle share momentum and derisked FY26 estimates, and potential upside from upcoming sporting events, including the Winter Olympics and World Cup. The firm’s revised target reflects its event-driven sentiment, with slowing growth largely priced in and select catalysts driving upside in 2026.
DraftKings Inc. (NASDAQ:DKNG), a Boston-based digital sports entertainment and gaming company, offers online sports betting, casino, fantasy sports, DraftKings Marketplace, retail sportsbook, media, and other consumer gaming products since 2011.
4. Coinbase Global, Inc. (NASDAQ:COIN)
Number of Hedge Fund Holders: 73
Upside Potential: 74.60%
Share Price Performance (Sep 30 – Feb 2): -44.34%
Coinbase Global, Inc. (NASDAQ:COIN) stands out as one of Cathie Wood’s 10 stock picks with huge upside potential.
As of February 2, 2026, roughly 70% of analysts remain bullish on Coinbase Global, Inc. (NASDAQ:COIN), with the consensus median price target impying a 74.60% upside. The analyst’s confidence is based on the company’s long-term growth trajectory and platform evolution.
On January 28, 2026, Coinbase Global, Inc. (NASDAQ:COIN) saw Baird analyst Robert Bamberger initiate coverage on the stock with a ‘Neutral’ rating and a $240 price target. While the analyst cited the company’s strong franchise and solid growth narrative, they also cautioned that recent volume declines and Clarity Act uncertainty combine to create a balanced risk/reward profile for the stock.
On the previous day, Coinbase Global, Inc. (NASDAQ:COIN) also drew attention from Cantor Fitzgerald’s Ramsey Al-Assal, who began coverage of the stock with an ‘Overweight’ rating and a $277 price target. Citing the company’s transition into a comprehensive crypto platform, the firm believes subscription and service revenue could support more consistent earnings amid the ongoing expansion of crypto adoption.
Coinbase Global, Inc. (NASDAQ:COIN) delivers a trusted platform for crypto trading, institutional brokerage, and developer access to decentralized applications.
3. The Trade Desk, Inc. (NASDAQ:TTD)
Number of Hedge Fund Holders: 42
Upside Potential: 79.80%
Share Price Performance (Sep 30 – Feb 2): -39.30%
The Trade Desk, Inc. (NASDAQ:TTD) stands out as one of Cathie Wood’s 10 stock picks with huge upside potential.
As of February 2, 2026, The Trade Desk, Inc. (NASDAQ:TTD) continues to attract mixed analyst sentiment, with over 50% of analysts covering the stock remaining bullish, with a consensus upside potential of a 79.80%.
On January 27, 2026, The Trade Desk, Inc. (NASDAQ:TTD) drew Rosenblatt analyst Barton Crockett’s attention, who lowered the firm’s price target from $64 to $53, while reiterating a ‘Buy’ rating. The target adjustment comes amid the surprising termination of CFO Alexander Kayyal after only five months of service.
On the same day, Truist also revisited The Trade Desk, Inc. (NASDAQ:TTD), reducing the price target from $85 to $60 while reiterating a ‘Buy’ rating. The firm’s updated price target incorporates adjustments to forecasts, accounting for increased uncertainty stemming from the CFO transition. The recently terminated CFO previously served as Chief Accounting Officer for nearly 11 years. He brought deep expertise in financial management across high-growth software and internet markets.
Analysts believe the abrupt change at this critical leadership position dims the case for a valuation premium. The firm says so despite the strength demonstrated in the company’s core digital advertising platform.
The Trade Desk, Inc. (NASDAQ:TTD) operates a data-driven advertising platform that enables brands and agencies to manage and optimize digital campaigns across display, video, audio, and connected TV channels globally.
2. Archer Aviation Inc. (NYSE:ACHR)
Number of Hedge Fund Holders: 37
Upside Potential: 80.80%
Share Price Performance (Sep 30 – Feb 2): -26.41%
Archer Aviation Inc. (NYSE:ACHR) is one of Cathie Wood’s 10 stock picks with huge upside potential.
On January 21, 2026, Archer Aviation Inc. (NYSE:ACHR) announced a strategic partnership with the Government of the Republic of Serbia, solidifying its international expansion strategy and positioning the country as a key hub for electric air taxis in Europe.
The agreement comes as Serbia appointed Archer Aviation Inc. (NYSE:ACHR) as its preferred eVTOL partner, acquiring the option to purchase up to 25 Midnight aircraft. The move reflects meaningful demand for Archer’s technology. The deal was finalized at the World Economic Forum in Davos, Switzerland, where Serbian President Aleksandar Vučić and Archer Founder and CEO Adam Goldstein were also present.
Following this deal, Archer Aviation Inc. (NYSE:ACHR) will act as the official air taxi provider for EXPO 2027 Belgrade. The Expo will run from May through August 2027. The company will demonstrate its advanced air mobility to millions of international visitors. The partnership also complements Archer’s ongoing flight test program, certification activities, and public-private partnerships in various markets. The partnership also features strategic discussions on industrialization, which focuses on rare earth magnets and critical minerals for eVTOL batteries.
Archer Aviation Inc. (NYSE:ACHR) focuses on developing electric vertical takeoff and landing (eVTOL) aircraft. The company advances urban air mobility solutions through partnerships and flight testing, and has been commercializing its Midnight aircraft platform since 2018.
1. Roblox Corporation (NYSE:RBLX)
Number of Hedge Fund Holders: 90
Upside Potential: 88.90%
Share Price Performance (Sep 30 – Feb 2): -51.29%
Roblox Corporation (NYSE:RBLX) stands out as one of Cathie Wood’s 10 stock picks with huge upside potential.
Gaming stocks faced investor volatility last week, with Roblox Corporation (NYSE:RBLX) among the impacted stocks. In response to this volatility, on February 2, 2026, Piper Sandler shared its views, describing the January 30, 2026, selloff as exaggerated. The firm believes the broader software weakness and new AI capabilities like Project Genie have made the market difficult to navigate. Furthermore, Piper Sandler attributed the selloff to end-of-January ETC purges. At the same time, the firm says Roblox Corporation (NYSE:RBLX) is currently trading at a discounted valuation compared to its earnings, indicating a potential setup ahead of upcoming earnings.
Meanwhile, on January 30, 2026, Roblox Corporation (NYSE:RBLX) drew Wedbush’s attention, which lowered its price target on the stock from $165 to $110, while reiterating an ‘Outperform’ rating. The investment firm attributed its cautious optimism to robust engagement per session despite summer comparison headwinds. However, the firm made adjustments in FY26 estimates, cutting Bookings growth to 18% from 24% and adjusted EBITDA margin from 23% to 21%. With these projections, the firm signaled that management may guide below Street expectations in the fourth quarter.
Roblox Corporation (NYSE:RBLX) offers online gaming services via Roblox Client, Studio, and Cloud. With these services, the company enables users and developers to explore, create, and operate immersive 3D experiences on its global platform.
While we acknowledge the potential of RBLX to grow, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than RBLX and that has 100x upside potential, check out our report about this cheapest AI stock.
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