Cathie Wood’s latest picks: 2 stocks she just bought

Casey Wood, the founder and CEO of ARK Invest, a fund manager, has earned the reputation of being one of the best stock pickers on Wall Street. And this reputation is well-deserved.In the past one, three, and five years, ARK’s flagship Innovative ETF Has crushed the market.

Given the impressive track record, smart investors may want to pay close attention to Wood’s trading situation.Recently, she added shares Pager (NYSE code: PD) with path (NYSE code: PATH) To ARK’s flagship ETF. Here is what you should know about these technology stocks.

1. a pager

PagerDuty is the central nervous system of modern enterprises. Its platform is located at the center of the company’s digital ecosystem, collecting data from almost all systems and devices. Then, by combining these signals with artificial intelligence, PagerDuty helps its customers predict and prevent downtime for critical services and technologies.

For example, the PagerDuty platform uses application performance monitoring tools (such as Data dog, IT operations center, such as Serve immediately, Public cloud like Microsoft Azure, customer service software such as Sales Network, And communication platforms, such as SkyrocketWhen a problem is found, PagerDuty will trigger an automatic repair or remind relevant personnel to help them quickly resolve events such as website interruptions or system failures.

As a pioneer in the industry, PagerDuty has 12 years of data and more than 14,100 customers, both of which make the company’s artificial intelligence model more effective. As new customers join the platform, PagerDuty’s data repository will continue to grow, further strengthening this advantage.

On the financial side, the company has achieved steady revenue growth in the past two years. Revenue in the past 12 months has increased from US$142.7 million in the second quarter of 2020 to US$244.2 million in the second quarter of 2022 (as of July 31), with a compound annual growth rate (CAGR) of 31%.

Investors should note that in accordance with generally accepted accounting principles, PagerDuty is still unprofitable and the company has generated $6.4 million in negative free cash flow in the past 12 months. However, PagerDuty is still in the early stages of business growth, and management believes that the company has seized less than 1% of market opportunities.

The bottom line is: In an increasingly digital world, providing a high-quality customer experience is not an option—it is a necessity. PagerDuty uses this fact to help customers always keep the digital ecosystem running normally. Given Wood’s focus on innovative technologies such as artificial intelligence, I am not surprised to see her add shares of this technology stock to ARK’s portfolio.

2.UiPath

UiPath’s mission is to bring automation to every enterprise. To this end, its platform combines three cutting-edge technologies—artificial intelligence, low-code development, and robotic process automation—to help customers build, deploy, and manage software robots that can replace human employees in automating various processes.

To this end, UiPath’s robots rely on multiple types of artificial intelligence, including computer vision, natural language processing, and machine learning. Together, these technologies have injected robots with the ability to read and understand language, imitate human behavior, and make decisions. In turn, this enables them to automate simple and complex tasks, such as checking emails, filling out forms, and extracting data from documents.

One of UiPath’s greatest strengths is its partner ecosystem.The company provides pre-built integrations with hundreds of popular technologies, including Amazon Web services, Microsoft 365 and Salesforce, which means customers can quickly automate workflows on these platforms.

Due to the scope of the company’s mission and its value proposition to customers, UiPath has grown its revenue at an impressive rate. Its revenue in the past 12 months has increased from US$451.2 million in the second quarter of 2021 to US$736.9 million in the second quarter of 2022 (as of July 31), a compound annual growth rate of 63%.

Like PagerDuty, UiPath is currently unprofitable on a GAAP basis, and free cash flow is negative. But according to reports, the company has established itself as an industry leader. Forrest ResearchIt makes sense to strengthen this advantage by actively investing in growth. This is exactly what management is doing.

The bottom line is: Automation improves efficiency and productivity by allowing employees to spend their time on more important tasks, which will benefit almost all companies in the world. And UiPath has the best products on the market. That’s why I am not surprised to see Wood betting twice on this technology stock.