1. Roku (NASDAQ: ROKU)
Streaming device maker Roku saw its stock double in 2023 after a rough couple of years. The company struggled with widening losses and slowing revenue growth as the connected TV ad market weakened. But Roku has bounced back with three straight quarters of accelerating top-line growth, reaching 20% in its latest report.
Roku now boasts 75.8 million active accounts, up 16% in the past year. Engagement remains strong too. While losses are still an issue as Roku invests heavily in content and new products, like shipping a new lineup of 4K TVs which accoring to Roku wil cost under 1500$ analysts see the red ink being cut by over 50% in 2024. If Roku can widen margins without sacrificing user or ad growth, 2024 could see even more gains.
2. Recursion Pharmaceuticals (NASDAQ: RXRX)
Clinical-stage biotech Recursion Pharmaceuticals trades at a hefty $2.1 billion valuation despite minimal revenue. But its A.I.-powered drug discovery platform offers long-term potential that investors like Cathie Wood are betting on.
Recursion uses machine learning algorithms to accelerate pharmaceutical research and development. Though profitability is years away, time and a flush balance sheet work in Recursion’s favor. The company also continues to strike deals expanding its A.I. reach – key to its ambitious goals.
3. Rocket Lab USA (NASDAQ: RKLB)
The ups and downs of the rocket launch business are reflected in Rocket Lab’s rocky stock chart. Shares took a hit after one of its rockets exploded in September. But the stock took off after Rocket Lab landed a $515 million government contract for 18 satellites. Additionally, Rocket Lab has planned a private mission to Venus in 2024, and its success will determine the company’s future direction.
Despite the volatility, Rocket Lab had a record year in 2023, launching 10 rockets successfully to bring its total to 42. With a largely successful track record deploying satellites, Cathie Wood seems to think Rocket Lab’s next big launch will be its stock price.
By adding to these three positions, Cathie Wood is betting that Roku, Recursion Pharmaceuticals, and Rocket Lab could help power her funds to a strong 2024. Her track record of picking innovative disruptors lends credibility to these high-risk, high-reward picks. We’ll see if her bets on the three “R’s” pay off this year.
