Cathie Wood’s Top 5 Small-Cap Stock Picks

2. LendingTree, Inc. (NASDAQ: TREE)

ARK’s Overall Allocation Rank: 9th

Market Cap: $3.478B

Second in our list is LendingTree, Inc which has a market cap of $3.478 billion. As stated on its media website, “LendingTree is a lot more than mortgages. We are an online loan marketplace for various financial borrowing needs including auto loans, small business loans, personal loans, credit cards, and more. We also offer comparison shopping services for autos and educational programs. Together, these services serve as an ally for consumers who are looking to comparison shop among multiple businesses and professionals who will compete for their business.”

Basically, the company’s business platform provides access to a secured, efficient, and hassle-free form of lending on a digital scale.

LendingTree holds 2.45% of ARK’s total equities, which amounts to $413,659,000 worth of shares, and has generated a decent 44% return since being acquired by Wood.

LendingTree recently raised its revenue outlook for the fourth quarter amid the strong performance of its Home segment. The updated guidance sent its share up more than 16 percent in the previous trading session. The company now expects to report revenue in the range of $220 million to $222 million for Q4, as compared to its previous projection between $200 million to $215 million. The revised forecast is also in line with the consensus estimate of $213.3 million. Moreover, the company also lifted its variable marketing margin outlook to a range of $80 million to $82 million, versus its earlier projection of $72 million to $78 million.