When you think of the new breed of money manager, it's hard not to have Cathie Wood at the top of the list. The ARK Invest CEO, chief investment officer, and founder is a master picker of disruptive growth stocks, and she also raises the bar among the universe of exchange-traded funds she watches over by announcing her transactions hours after the end of each trading day.
She's always buying and selling and letting the public know exactly what's in and out of her shopping cart. Genius Sports (GENI -3.04%), Teladoc Health (TDOC 0.30%), and Blade Air Mobility (BLDE -0.28%) are three positions that she expanded on Monday. They are all trading at least 30% below their 52-week highs. Let's take a closer look.
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Genius Sports
Like cannabis, sports gambling seems to be sweeping the nation with state-by-state legalization. There are plenty of fast-growing players with interesting takes on sportsbooks and other gaming initiatives, but Genius Sports is an interesting deep cut for the investor seeking plays on the gambling boom.
Genius Sports offers data and software solutions for sportsbook operators. Its wide assortment of technology, content, and services for the betting industry includes official statistics and scores as well as platforms for customer acquisition, retention, and fan engagement. It's not just online sportsbooks and offline casinos turning to Genius Sports. Media companies are also drawn to the data-crunching speedster that until earlier this year went by the name Betgenius.
It hit the ground running after hitting the market in the springtime as a SPAC deal. Revenue rose 52% in its first quarterly report as a public company, more than doubling to a 108% top-line surge in its latest report.
Teladoc Health
A favorite purchase for Wood these days is a telehealth specialist that has fallen on hard times. Teladoc Health has fallen 56% since peaking in February, but it's one stock that ARK Invest is buying hand over fist these days. By adding to her position on Monday, Wood has now been a buyer of Teladoc in nine of the past 11 trading days. It is the second-largest combined holding across all of ARK Invest's ETFs.
ARK Invest isn't the only one that thinks the virtual care specialist is a value here. Wells Fargo analyst Stephen Baxter initiated coverage of the out-of-favor stock with a bullish overweight rating. Despite the intensifying competition and diminished investor interest now that in-office visits and consultations are easily accessible, Baxter feels that Teladoc has the size and scalability to generate organic revenue growth north of 20% through at least the next five years. His price target of $156 represents just 15% of upside from where the stock closed on Monday, but upticks in general have been hard to come by for Teladoc investors this year.
Blade Air Mobility
Like Genius Sports, Blade Air Mobility is a SPAC deal that hit the market in springtime of this year, but this one lost altitude even before the transaction was complete. Sometimes the hype once a SPAC deal is announced doesn't match the reality after it's active and complete. Blade Air Mobility is trading nearly 50% below where the stock was earlier this year.
Blade Air Mobility hit the market as a provider of helicopter transport services. In a hot market like New York City where traffic and the wealth to overcome it are both abundant, such a business makes sense, but would the Blade Air ridesharing model work elsewhere? Thankfully, Blade Air Mobility is using its status as a public company to expand its offerings via acquisition. Last month it announced that it would be buying Trinity Air Medical, a medical transporter that makes Blade Air a leading player in the critical role of human organ air transport.
Wood was buying into Blade Air Mobility months before the SPAC deal was complete. She added to her position again on Monday, waiting for it get off the ground again.