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Love her or hate her, Kathy Wood stands out as a very popular, somewhat controversial investor out there to follow for two main reasons. Her long-term approach to investing in disruptive tech companies for the future, which can often times be a bit higher risk. Number two is that she is one of the very few large institutional investors that will actually show you every single trade she makes in the market, which for that reason alone, I would give her my respect.
And I wish all other big financial investing whales out there would do the same thing and have that same transparency. Because of that though, we are actually able to look at all of her recent trades, not just from the past quarter, but in fact from this past month alone. So in today's video, we're going to be running through five of her largest, most recent purchases totaling more than $100 million just in these five stocks just over the past month.
Huge purchases that we're talking about here. And as always, I will give you my own opinion on each one of these. I'll even rank them from best to worst two based on that opinion. So, smash that like button. Share your thoughts down below as we run through each of these. Let's go ahead and just jump straight into it.
Now, coming in at the smallest of the bunch, Kathy poured more than $3.5 million into a popular chip stock. Except it wasn't Nvidia or AMD or even Intel, but in fact, it was in Qualcomm, ticker symbol QCOM. This of course being the world leader in smartphone chips through their popular Snapdragon series that not only commands over half of the world's entire market share but are now being designed further to even run generative AI locally including image editing, language assistance, contextual recommendations and more which reduce their dependence on the cloud and increase privacy with a lower latency providing just an overall better experience on every handset.
out there, which could help drive the next smartphone upgrade cycle, too. At least at least that would be their sales pitch. On top of that, though, more recently, QC has also done a great job of pushing much heavier into personal computers, particularly on ARM, like they have with the new Microsoft Surface tablets that run on Snapdragon X, which I actually uh recently purchased one myself.
I've got this blue Surface Pro, Surface Pro, think this is the 11. And uh I absolutely love it. I love the combination of both power and battery efficiency that really excels on ARM specifically. And that's not because I'm sponsored by them or anything like that. Not in any way, just I do actually really love this Surface tablet.
And I've always liked using Surface tablets. Uh but on top of that, they're also Qualcomm is pushing heavier into artificial intelligence with the internet of things. So think of like smart homes and robotics and cameras and video detection, industrial automation, connected edge devices, and more. Plus, they're even expanding into automotive and entertainment systems like they have with their digital cockpit and advanced driver assistance platforms.
Think of autonomous driving. Most of which, by the way, are outpacing handsets now in terms of growth given their smaller size. Last quarter, for example, Qualcomm's IoT and automotive revenues grew by a whopping 23% year-over-year, which not only helped make up for the singledigit handset growth, helping drive total sales and profits by double digits higher each, but it also helped push their non-Apple revenues year-to- date to 15% growth, too.
If this momentum continues, QC will only become more diversified over time, which is crucial for them lowering their dependence on Apple, who plans to completely phase out of their modems by 2027. Still, partly because of that phase out, analysts expect a downturn in their financials in both of the next two years.
And while I do think that they will eventually recover from that, it's been enough of a concern coupled with their heavy reliance on China to really punish the stock lately where it's lost close to a quarter of its value from the top and thus left it with a very cheap valuation that is around 50% lower than the sector on a P basis.
While the dividend has also risen to above a 2% yield on over two decades of consecutive growth with still a very low payout ratio. So pretty attractive little growth dividend there as well. For those reasons, coupled with the large future potential in chips and AI, I would actually rank Qualcomm pretty high here at number two until at least we see what else is on this list.
Even though I do not own the stock myself, though mostly though, it's just because I already own way too many chip stocks as it is. Don't really just feel like I need another one in my portfolio. But hey, coming in at purchase number two, Kathy made an even larger purchase here. this time in Netflix, picking up nearly $18 million of the stock.
But while this has been an amazing performer over the years, that continues to prove me wrong on it. I'm just not the biggest fan of it. Never really have been. But hey, to be fair to Netflix, on the pro side, the company has become a very powerful market leader with over 300 million subscribers globally, which to date, I believe, is probably much higher than that.
I think they stopped reporting that number. Um, and I would say it's probably even approaching the entire the size of it is probably approaching as a total count similar to the entire population of the United States in terms of size, which is very large. And what that's led to are just some gigantic sales in the tens of billions of dollars, which is now starting to trickle down heavier too to the bottom line where their EPS is growing at around double the rate of their sales.
Much of which has also been fueled by several new growth initiatives, including a crackdown on password sharing, new types of content for diversification, including sports and other live events, and even new adup supported version two that has already reached around 100 million subs. But if we put those pros aside for a second, there's still one glaringly obvious con that I just can't overlook.
And that is simply the fact that they have an overwhelming amount of competition in the space from alternative players, by the way, that are much more diversified with also much broader profit engines. All of which I consider to be better overall investments. This includes Amazon, who I already felt was one of the absolute best stocks to own in the market on its own, let alone their growing prime video segment.
But there's also Disney, there's Apple, there's Google with YouTube, and even a few other names that maybe I don't necessarily consider to be better stocks, but are still great competitors in video streaming, like, you know, HBO Discovery, Paramount, Peacock, there's even Roku, and more. Not to mention that Netflix themselves are also dealing with a bit of controversy lately from their own content, which has even grabbed the attention of Elon Musk, who publicly called for a boycott of the service.
And regardless of any personal feelings or opinions on any of that, the fact is that the stock was already very expensive to begin with, trading around 200% higher than the sector in one of the most fiercely competitive markets in the world. Because of that, I just think I'd rather invest in something a little more reliable, safer, and more diversified.
Again, though, stock continues to prove me wrong. I've been wrong about it this entire time. So, maybe that'll continue. But for me, I still wouldn't rank this any higher than third place at best. All right, guys. Moving on to purchase number three, though. We actually have the first stock of the list that I also own a small position in myself, and that is Robin Hood.
Ticker symbol H O D Hood. uh which Kathy picked up another $24 million of this past month. And look, I will say the growth so far has been explosive for Hood where funded accounts continue. funded customer accounts continue to soar, having now reached a record over 26 million, of which are mostly a younger demographic, leaving Robin Hood with a growing user base to tap into over time as they grow in not just age, but also in wealth, allowing Hood to market even more products to them and thus creating a bit of a snowball effect long term, which by the way, they've done a great job of too, adding new services like commissionfree options, crypto trading, prediction markets, the tokenization of European stocks for easier trading.
They've got basic banking services now too, including credit cards. And they even offer a more premium subscription service called Robin Hood Gold to keep the recurring revenues pouring in, which continues to grow in not just count, but also in adoption rate. The result though has been big growth on not just the top line hovering around a billion dollars per quarter which was up 45% year-over-year in the last one but it's also trickling down heavier into the bottom line too where net income nearly reached 400 million last quarter was up triple digits year-over-year still like Netflix I just feel that there is a better alternative choice out there and for me that would be in SoFi who I just enjoy using the platform much more they offer more services I feel that they're more diversified.
Their goal is to even become a top 10 bank in America over the next decade, which I do actually think they'll achieve. And it's just an overall stock that I see more future potential in. Don't get me wrong though, I do think Robin Hood has an edge at being a more laser focused play on trading services specifically, but I just like the overall larger financial experience from SoFi as a more complete, more diversified fintech.
However, I will still hold my Robin Hood shares long-term for the other bullish reasons that I just gave you. But after skyrocketing by more than 400% in just the past year alone, leaving the valuation over 500% higher than the sector on a PE and still over 100% higher on a PEG ratio, too. I just don't think I'll be buying any more shares at this time.
I will still rank them pretty high here though, higher than Netflix, but I'm going to keep Qualcomm a little higher. Give them the slight edge for the much cheaper valuation and even a pretty attractive dividend, too. All right, guys. We're now down to the final two stocks, the largest of the group.
And surprisingly, we actually have another stock here that I do own myself, too. And it also happens to be a Chinese stock. Kind of interesting for Kathy to be buying one during all the, you know, trade chaos going on. But this was in the Chinese version of Amazon known as Alibaba, ticker symbol BABA, which Kathy dropped over $36 million into during the month of October.
And when looking at BABA, it was actually crashing hard for a while there up until last year where around that time, I actually put out several videos on how much I was buying the dip myself. But since then, the stock actually started to rebound greatly where it's now more than doubled so far this year.
So, what's been driving up that recovery? Well, much of it has to do with the company investing more heavily and just putting a ton of focus really into their businesses that surround AI, cloud, and logistics at massive scale. For example, they recently unveiled a new AI processing chip that is said to carry similar performance metrics to that of Nvidia's H20 accelerators, but at much lower cost, which could make for a very compelling alternative locally in China, where the government has reportedly been pressuring companies to start adopting more homegrown chips.
They're also investing over $50 billion on new AI infrastructure over the next three years, which was a very welcome sign to investors as their cloud intelligence segment continues to be on fire, growing another 26% last quarter despite them already being the largest provider in all of Asia. They also reported tripledigit growth in AI related product sales for the eighth quarter in a row.
That's pretty crazy. and it'll likely keep growing even larger after recently launching the newest version of their LLM large language model called Quen 3 Max. It's a model that uses over a trillion parameters. Company also announced new partnerships in robotics, AI, autonomous driving and several other similar deals, too.
Not to mention that their e-commerce business continues to be one of the absolute largest in the world. It's even generating more gross merchandise value than that of Amazon. Add it all up and for a stock that even after the big runup recently, it's one that has still been fairly suppressed longer term, it's only up about 100% all time, which I think most investors would agree that it's an obvious stock to own if it wasn't for the significant risk that it carries as a Chinese company.
from a VIE structure that leaves little rights to foreign shareholders like myself to growing trade tensions with the US that are almost impossible to predict an outcome for under a Trump presidency. Still, I think the argument can be made that on paper at least, this is still arguably the best bang for your buck on this list.
So, I will put them in first place because of it, despite again the considerable risk it carries. All right, guys. That's going to leave us now though with the fifth and final purchase of the list. This is the largest of the entire bunch here and that was in kind of surprising here but it was in DraftKings ticker symbol DKNG the sports betting giant which Kathy purchased around $37 million of during the month.
Now the bull case for DK is pretty straightforward as sports betting is quickly turning into one of the most lucrative markets in the entire world having now been legalized in 38 states across the US with DraftKings having a very large presence and most of them as a market leader. And when I say lucrative, I'm really talking about not just the overall size of the market, but also in the incredible margins that should come along with it over time.
Since there isn't really any physical infrastructure to build or maintain, all you're really doing here is allowing users to use your app to place bets, most of which they're going to lose, unfortunately, cuz that's the case with virtually all forms of gambling. And thus, the facilitator of that is really just pocketing insane amounts of money seemingly all the time.
However, just like with Netflix earlier, there is one clear reason why I haven't purchased this stock myself, and it's because I just think that there are there is, I should say, a better, more diversified option to consider, and that would be in Disney. See, the sports betting market on its own is becoming incredibly saturated with numerous big players like not just DraftKings but also Price Picks, Better, FanDuel, Bet MGM, Bet 365, Fanatics, Underdog, Sports Illustrated, Fox Bet, and even ESPN Bet, which is owned by ESPN, which is owned by Disney.
And what all of this intense competition with virtually no barrier to entry translates to is that all of them are now being forced to spend huge amounts of money on advertising and marketing and various promotions and deals to win over customers against their rivals. And while I have no doubt that this market will be large enough to support multiple players, including DraftKings, who by the way, I'm sure will eventually become decently profitable in the future, I just can't overlook the fact that even with their sales growing by 30% last year to a new record high, the company still lost over half a billion dollars on the bottom line.
The stock itself is also fairly volatile with a valuation that is pretty difficult to analyze given the only metrics I see available are a forward PE that is 400% higher than the sector and a PS ratio that is over 100% higher too. So, why would I even bother taking the risk on this one when I could simply just own Disney, who not only gives me plenty of exposure to the same market with ESPN Bet, but also tons of other great markets, too, at an even cheaper valuation, but also much larger and more stable financials.
For that reason alone, I'm going to have to put this one in last place behind all others. Again, not because it's a bad stock on its own. I actually think none of the stocks on this list are necessarily bad or maybe not worth investing in. I just think they would need to find a perfect fit in your own portfolio depending on what it is that you're looking for specifically.
Whereas for me, there's not really much on here that makes a whole lot of sense apart from just holding on to the couple that I already own. And to be honest, if I was spending over $und00 million on five stocks being my largest purchases, I would definitely throw some safer options into that list rather than, you know, skewing it so heavily to the risk side of the spectrum like Kathy usually does.
But hey, that's the fun of looking at Kathy Wood stocks, right? You never know what you'll find here. Let me know what you guys think about all of these down below, too. And if you agree with my rankings, I'd love to hear from you. But either way, I hope you enjoyed the video, and I will catch you in the next one, my friends. I hope you're all doing well. Take care out there. Bye-bye.
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