Cathie Wood’s Curious Shopping List

The final trading day of January saw Cathie Wood, a figure whose investment decisions are followed with the sort of intensity usually reserved for tracking migratory patterns of particularly eccentric waterfowl, actively rearranging the contents of her investment portfolios. It wasn’t a frantic, panicked rearrangement, mind you—more of a considered, thoughtful shuffling of financial deckchairs on a ship that, while perfectly seaworthy, occasionally lists a bit to starboard. She added to eight existing positions, trimmed three, and generally behaved as though the universe hadn’t entirely forgotten about her. Which, statistically speaking, is always a possibility. (The universe, you see, has a rather alarming habit of misplacing things. Socks, car keys, entire galaxies… it’s all the same to it.)

Three stocks caught the eye, not necessarily because of their inherent brilliance, but because Ms. Wood chose to acquire more of them whilst most other investors seemed to be engaged in a synchronized retreat. These were Amazon, Robinhood Markets, and Coinbase. All three experienced a slight downward wobble on Friday, which, from a purely geological perspective, is entirely unremarkable. (Everything goes down eventually, given enough time and gravity. It’s a fundamental principle of existence.) Let’s examine these choices with the sort of detached curiosity usually reserved for observing the mating rituals of deep-sea anglerfish.

1. Amazon

Amazon, that sprawling, ever-expanding digital empire, is currently preparing to reveal its quarterly earnings. This is a process akin to an ancient oracle consulting the entrails of a particularly complex algorithm. The company anticipates net sales of between $206 and $213 billion for the final quarter of the year – a range broad enough to accommodate a small nation’s GDP. (It’s always reassuring to know that a company has options. It suggests a certain level of preparedness for, say, a sudden influx of interdimensional tourists.) The operating profit forecast is even more delightfully vague, ranging from a possible decline of 1% to a rather optimistic 23% increase. Analysts, those professional guessers, predict a 5% rise in earnings per share, which, if accurate, would be… well, accurate.

Amazon’s growth rate, a mere 9%, 12%, and 11% over the past three years, is causing some consternation amongst those who expect exponential growth from everything. (It’s a rather unreasonable expectation, really. Even compound interest has its limits. Eventually, you run out of universe.) However, Amazon Web Services (AWS), that cloud-hosting behemoth, is quietly propping up the bottom line. AWS is growing faster than the flagship e-tail business, and is, in essence, a high-margin juggernaut. It accounted for two-thirds of Amazon’s net operating income in the last quarter, which is a rather impressive feat of financial engineering. (It’s like having a tiny, incredibly efficient robot secretly running your entire company.) The stock has lagged the market over the past year, but a strong earnings report could change that. Of course, a lot can happen in four days. (Especially if you factor in the possibility of rogue asteroids or unexpected shifts in the space-time continuum.) Ms. Wood’s purchase, therefore, suggests a certain degree of confidence. Or possibly a well-calculated gamble. It’s difficult to say.

2. Robinhood Markets

Robinhood, that platform for commission-free trading, is increasingly reliant on options and cryptocurrency for its revenue. This is a bit like building a castle on a foundation of bubblegum and wishful thinking. (It might work for a while, but it’s not a particularly robust long-term strategy.) Cryptocurrencies, as everyone knows, are currently experiencing a bit of a wobble. Bitcoin, the original cryptocurrency, has plummeted 40% since its October peak. (It’s a good reminder that even digital assets are subject to the whims of the market. And the occasional rogue tweet.) Ms. Wood’s decision to buy into Robinhood and Coinbase on Friday, therefore, appears… optimistic. Especially given that Bitcoin fell another 10% over the weekend.

Robinhood is attempting to diversify, venturing into futures, predictive markets, and even tax filings and estate planning. (It’s a rather eclectic mix of services. It’s like a Swiss Army knife designed by a committee.) They’ve also announced a potential partnership with Donald Trump to launch accounts for children. (The implications of this are… intriguing. Let’s not dwell on them.)

3. Coinbase

Coinbase, naturally, is even more reliant on cryptocurrency than Robinhood. It’s a bit like a ship built entirely out of seashells. (It might be beautiful, but it’s not particularly seaworthy.) The stock has been cut in half since Bitcoin’s October peak, performing worse than the cryptocurrency itself. Analysts are forecasting a 78% plunge in earnings per share and an 18% slide in revenue for the fourth quarter. (It’s a rather bleak outlook. It’s enough to make even the most hardened investor reach for the antacids.) Coinbase lacks the diversification options available to Robinhood, but it’s also better positioned to benefit from a sustained recovery in Bitcoin and other digital currencies. (It’s a bit like being a specialist surgeon. You’re vulnerable when things are quiet, but you’re invaluable when there’s an emergency.)

2026-02-02 18:13

1. Amazon

2. Robinhood Markets

3. Coinbase

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