Cathie Woods Latest Bargain Hunting: Nvidia, DoorDash, and Nextdoor Holdings

Cathie Wood, the founder, CEO, and chief investment officer of the Ark Invest family of exchange-traded funds (ETFs), has made headlines with her latest stock purchases. This week, she invested in three companies: Nvidia (NASDAQ: NVDA), DoorDash (NASDAQ: DASH), and Nextdoor Holdings (NYSE: KIND). Let's take a closer look at these investments and why they caught her eye. Nvidia is a 15-bagger over the past five years and an 8-bagger over three years. The stock has rebounded 67% since bottoming out two months ago, but it's still trading at a discount to its growth rate. Despite the recent run-up, Nvidia is trading for 34 times this year's projected earnings and 25 times next year's, which is a discount to its growth rate even if the pace will inevitably slow in the coming quarters. The company's revenue soared 69% to $44.1 billion in its latest quarterly update, with a 73% surge in data center revenue accounting for more than 88% of the period's top line. DoorDash, on the other hand, has seen its revenue rise 21% in the first quarter, with total orders up 18% over the past year. The company has been profitable for the last three quarters and has made fleet improvements to speed up deliveries and broaden its reach. It has also made strategic acquisitions such as European delivery specialist Deliveroo and restaurant reservations booker SevenRooms earlier this year. Nextdoor Holdings is a hyperlocal online forum that connects 46 million weekly active users. While the shares have plummeted roughly 80% since it went public as a special purpose acquisition company (SPAC) four years ago, the platform operator is flush with $418 million in cash, accounting for about two-thirds of its current market cap, with no long-term debt. Despite the slow revenue growth and lack of profitability in recent years, Wood has been building her position in Nextdoor aggressively over the past two months. In conclusion, Cathie Wood's latest purchases in Nvidia, DoorDash, and Nextdoor Holdings show her confidence in these companies despite their different market positions and growth trajectories. While Nvidia and DoorDash are riding high on strong demand for their services, Nextdoor Holdings presents a value play for Wood as an aggressive growth investor. However, before investing in any of these stocks, it's important to consider their potential risks and rewards, as well as your investment goals and risk tolerance.