Market Commentary: 3 Cathie Wood’s Stocks Are Soaring Again

It’s been a while but eventually the wheel has come full circle for Cathie Wood, it seems. From the dizzying heights of 2021 to the crushing lows of 2022, Wood and her ARK Invest fund have enjoyed the highest highs and suffered the lowest lows.

Over the past couple of weeks, sentiment has swung back in her favor and some of her stocks have been on an absolute tear, breaking aggressively out of downtrends and going on to power higher, on huge volume.

Here, we take a look at some of the biggest movers.

Key Points

• Growth stocks are back with a bang, and three of Cathie Wood’s stocks are making huge moves.
• Both Blade Air Mobility and AvidXChange have considerable upside to analysts’ consensus price targets.
• Adyen also had a massive move higher and is still undervalued according to a discounted cash flow forecast analysis.

Blade Air Mobility

Blade Air Mobility is a provider of air transportation alternatives to congested ground routes in the USA, offering charter and by-the-seat flights using helicopters, jets, turboprops, and even amphibious seaplanes.

It’s up from the low $2 range to north of $3 in the space of just a week or so and, according to the five analysts covering the stock, still has room to climb as high as $7.70, the consensus price target.

With $172 million in cash on the balance sheet, and no long-term debt, the company has sufficient financial fuel to continue to soar. While it is losing in or around $10 million in most quarters, there is still ample runway to turn profitable before real liquidity concerns surface.

Adyen

Another stock on the move is Adyen, which gapped up massively last week from under $700 per share to over $900 per share.

While Stripe grabs the headlines in the US, Adyen is reportedly crushing its better known rival on all sorts of key metrics from growth to profitability.

Still, Adyen has 22.2% upside according to a discounted cash flow forecast analysis with fair value sitting at $1,220 per share.

AvidXChange

A final Cathie Wood stock that is soaring is the little-known AvidXChange Holdings, which provides accounts payable automation software and payment solutions for middle market businesses and their suppliers in North America.

Despite popping from $8 per share to $9 and change, the 13 analysts covering the stock see further gains on the horizon with a consensus price target of $12.42 per share, suggesting as much as 28.6% upside.

Final Thoughts

All of these companies have fundamental merits and upside potential but if there was one to pay special attention to it would be Adyen.

The combined market capitalization of AvidXchange and Air Blade Mobility is less than $3 billion, whereas Adyen is already a $31 billion market cap firm with considerable upside to realize still.

If indeed it is stealing Stripe’s lunch, the future for Adyen might be even brighter than the past.