Cathie Wood's Shopping Spree: Unveiling Her Latest Stock Picks
It's that time of year again when investors are looking ahead, and Cathie Wood, the visionary behind Ark Invest, was busy making moves just before the holidays. But what stocks caught her eye? Let's dive in!
Wood and her team were actively trading during the last week of 2025, starting December 15th. They added to existing holdings in Ark's well-known exchange-traded funds (ETFs). Among the stocks that received a boost were Circle Internet Group, Bullish, and Schrödinger. Let's explore each one.
1. Circle Internet Group
Circle is the company behind USDC, the second-largest U.S. dollar stablecoin, trailing only Tether in terms of market capitalization. USDC's foundation is built on Circle's commitment to backing each coin with liquid assets, mainly U.S. Treasury bonds, cash, and equivalents. The goal? To establish USDC as the go-to dollar stablecoin. And it appears to be working! The token's market cap has more than tripled in the last two years, growing from about $25 billion to its current $78.3 billion.
Circle's current business model is straightforward: 96% of its revenue comes from interest earned on its Treasury holdings and other interest-bearing liquid assets. In its most recent quarter, the company saw a 66% year-over-year increase in its top line, reaching $740 million.
But here's where it gets controversial... While Circle's model is simple, its future success hinges on consumer adoption. As we're still in the early stages of digital finance, is this a safe bet? True believers in USDC might consider investing, but it's a call that requires careful consideration.
- Today's Change: (6.35%) $5.14
- Current Price: $86.13
2. Bullish
Like Circle, Bullish is a cryptocurrency-related stock. It operates a cryptocurrency exchange, led by former New York Stock Exchange (NYSE) President Tom Farley and backed by tech investor Peter Thiel's Founders Fund and Thiel Capital. This gives Bullish connections to both the traditional and cutting-edge financial worlds.
Bullish aims to stand out from other crypto exchange operators by focusing on institutional clients and advanced securities traders. It also owns CoinDesk, which generates revenue from events and index-data products. The company launched spot crypto trading in October, following its August initial public offering (in which Ark invested).
Bullish is growing, with adjusted revenue up 72% year over year to $76.5 million in its third quarter. Thanks to a significant change in the fair value of its investment in financial assets, it reported net income of nearly $18.5 million, compared to a year-ago net loss of $67 million.
I think Bullish needs to either increase its revenue from information services or find new revenue streams. And this is the part most people miss... It's vulnerable to the crypto market's volatility, making it no more attractive than the trendier cryptocurrencies.
- Today's Change: (4.01%) $1.72
- Current Price: $44.60
3. Schrödinger
Schrödinger is the only non-crypto stock in this trio, but it's just as innovative. The company specializes in drug discovery and materials design, offering a proprietary, physics-based, and AI-enhanced software platform. Schrödinger licenses this software (mainly to healthcare companies) and uses it for its own research.
Software revenue, the bulk of its top line, rose 28% year over year in the third quarter, reaching almost $41 million. Drug discovery efforts are also generating revenue, with $13.5 million coming in, up from $3.4 million a year earlier.
While Schrödinger is a habitual money-loser, it narrowed its net shortfall to $32.8 million from $38.1 million in the third quarter of 2024. It also has $401 million in cash and highly liquid assets, providing a solid financial runway. The scope of its software platform, which can be used for materials research in fields like the aerospace industry, is another positive sign.
- Today's Change: (2.67%) $0.46
- Current Price: $17.66
Final Thoughts
Cathie Wood's choices reflect her focus on innovative companies. Circle, Bullish, and Schrödinger each represent different facets of the future, from digital finance to cutting-edge research. But remember, the stock market can be unpredictable. What do you think of Cathie Wood's latest picks? Share your thoughts in the comments below! Do you agree with her choices, or do you have a different perspective? Let's discuss!
