Cathie Wood Goes Bargain Hunting: 3 Stocks She Just Bought
98min read Cathie Wood, the visionary CEO of Ark Invest, has long been known for her bold bets on disruptive technologies. In Q2 2025, her strategy shifted toward bargain hunting, with her firm adding significant stakes in three companies positioned for long-term growth despite near-term headwinds. These purchases reflect Ark’s focus on undervalued opportunities in metaverse/gaming, genomics, and synthetic biology—sectors Wood believes will redefine industries over the next decade.
1. Roblox (RBLX): Betting on the Metaverse’s Future
What’s the Play?
Ark Invest purchased 48,541 shares of Roblox, totaling $3.21 million, as of Q2 2025. The move signals confidence in Roblox’s role as a leader in immersive digital experiences, a core theme of Ark’s “metaverse” thesis.
Why Now?
- Market Valuation: RBLX shares had fallen over 30% in 2025 amid concerns about user growth and macroeconomic pressures, creating a buying opportunity.
- Strategic Rationale: Roblox’s platform hosts 50 million daily active users, with its user-generated content model enabling scalable monetization. Wood sees this as critical to the metaverse’s evolution, where social and gaming ecosystems will dominate digital interaction.
Analyst Take:
While some fear the metaverse remains a distant concept, Wood’s team argues that Roblox’s $2.3 billion revenue in 2024 (up 18% YoY) proves its staying power. The stock’s 15x forward EV/Revenue multiple suggests it’s trading at a discount to its growth trajectory.
2. Illumina (ILMN): Leading the Genomics Revolution
What’s the Play?
Ark added 107,459 shares of Illumina, valued at $11.93 million, in Q2 2025. This underscores the firm’s belief in genomics as a transformative industry, driven by personalized medicine and genetic research.
Why Now?
- Valuation: ILMN shares dropped 25% in 2025 after a regulatory setback in its $8 billion acquisition of GRAIL, creating a buying opportunity.
- Long-Term Potential: Illumina’s sequencing technology powers 80% of global genomic research. As genetic testing costs plummet (down 99.9% since 2007), demand for its tools is surging in healthcare, agriculture, and biotech.
Analyst Take:
Illumina’s $4.4 billion in 2023 revenue (up 14% YoY) highlights its market dominance. While short-term headwinds persist, its $5.6 billion in cash and partnerships with pharma giants like Roche position it to capitalize on the $200 billion genomics market expected by (source: BCG).
3. Twist Bioscience (TWST): Engineering the Future of DNA
What’s the Play?
Ark Invest acquired 44,562 shares of Twist Bioscience, though the exact dollar amount wasn’t disclosed. Twist’s role in synthetic DNA synthesis aligns with Ark’s focus on biotech’s exponential potential.
Why Now?
- Valuation: TWST shares fell 60% in 2025, penalized by high R&D costs and delayed clinical trial timelines.
- Breakthroughs Ahead: Twist’s synthetic DNA enables innovations like CRISPR-based therapies, mRNA vaccines, and synthetic biology. Its partnership with Moderna for mRNA manufacturing could unlock multi-billion-dollar opportunities.
Analyst Take:
While TWST’s losses hit $189 million in 2023, its $100 million backlog and 30% revenue growth YoY (to $182 million in 2024) suggest scaling is underway. Wood’s bet here is on the $15 billion synthetic biology market, which could grow to $100 billion by 2030 (source: McKinsey).
The Strategic Context: Why Bargain Hunt Now?
Ark’s Q2 2025 moves come amid a cautious market backdrop, with global trade tensions and recession fears打压ing growth stocks. By targeting companies trading at discounts to their growth potential, Wood aims to “feast on volatility”, a strategy she’s deployed successfully in past downturns.
The portfolio shifts also reflect a sector pivot:
- Reduced exposure: Tesla (-28%), Palantir (-29%), and Rivian (-83%) were trimmed to reallocate capital toward sectors with clearer long-term catalysts.
- Regional focus: While the U.S. tech sector faced headwinds, Ark’s purchases in Roblox (U.S.) and Illumina (U.K.) align with its “global innovation” theme, prioritizing companies with global growth engines.
Conclusion: A High-Reward, High-Risk Gamble
Cathie Wood’s Q2 2025 buys are a calculated bet on transformative technologies trading at cyclical lows. Each of the three stocks—Roblox (RBLX), Illumina (ILMN), and Twist Bioscience (TWST)—offers exposure to sectors with 10x growth potential over the next decade:
- Roblox could benefit from a $800 billion metaverse market (source: Goldman Sachs).
- Illumina stands to gain from a $200 billion genomics industry.
- Twist is positioned for a $100 billion synthetic biology sector.
While near-term risks remain—trade wars, regulatory hurdles, and execution challenges—the data suggests these stocks are undervalued relative to their long-term trajectories. Ark’s history of outperformance in high-conviction, thematic plays (e.g., Tesla, Coinbase) hints that patience could pay off. For investors willing to ride the volatility, these picks represent a chance to own the future at a discount.
As Wood famously said, “Exponential innovation is the answer to everything.” In Q2 2025, she’s doubling down on that belief—and the numbers back her up.
