Cathie Wood Goes Bargain Hunting: 3 Stocks She Just Bought
1. Alphabet
Don’t fall for the myth that large stocks can’t deliver monster returns. Alphabet stock is one of just three stocks with a market cap above $4 trillion, but it has soared 116% over the past year. Google’s parent company is experiencing a renaissance for growth investors.
Revenue growth is accelerating for the third consecutive year. The bar was admittedly low when the Magnificent Seven stock saw its top line rise less than 9% in 2023. Revenue rose 14% and 15% in subsequent years, with net margin reaching an impressive all-time high of 33% in 2025.
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NASDAQ: GOOGL
Alphabet
Today’s Change
(1.18%) $4.23
Current Price
$363.22
Key Data Points
Market Cap
$4.3T
Day’s Range
$358.21 – $364.76
52wk Range
$162.00 – $408.61
Volume
230.6K
Avg Vol
28.9M
Gross Margin
60.43%
Dividend Yield
0.23%
Revenue rose 22% in the first quarter of this year. Profitability is growing even faster, so it’s already on pace to set new margin records. Alphabet’s high-margin online advertising business continues to drive more than two-thirds of its revenue, but its smaller Google Cloud hosting platform just delivered 63% year-over-year growth.
Another catalyst for Alphabet’s more than doubling over the past year is its emergence in AI, beyond what it means for the healthy demand for Google Cloud. Google Gemini continues to trail market leader ChatGPT, but it’s growing quickly. Alphabet also is no longer content to simply sit on the sidelines when it comes to hardware. Google is now starting to market the Tensor Processing Units that it’s been using to efficiently operate its data centers.
Despite committing a whopping $185 billion in capital expenditures in pursuit of its ascending opportunity in AI, analysts still see material bottom-line growth for Alphabet. They see the leader in search posting 21% in revenue growth, with earnings per rising 32% for all of 2026. Some one-time security gains boosted the first quarter’s profitability, but that’s still impressive.
Alphabet turned heads by announcing plans to sell $85 billion worth of stock this week. A lot of big names are buying into the Alphabet growth story. So is Wood, adding both classes of Alphabet s to four of her five largest ETFs.
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NASDAQ: META
Meta Platforms
Today’s Change
(1.49%) $9.31
Current Price
$632.29
Key Data Points
Market Cap
$1.6T
Day’s Range
$622.05 – $637.66
52wk Range
$520.26 – $796.25
Volume
183.2K
Avg Vol
16.3M
Gross Margin
81.94%
Dividend Yield
0.34%
2. Meta Platforms
Alphabet isn’t the only Mag 7 constituent accelerating its growth. It’s working on what could be its fourth consecutive year of top-line acceleration. Facebook, Instagram, and WhatsApp keep a lot of people connected. The parent company was serving 3.56 billion daily active users at the end of the first quarter.
Meta got its start by appealing to high school and college students, but these days even its forward earnings multiple is in the teens. You can buy the social media juggernaut for 19 times this year’s projected profit. Wood is giving the stock a thumbs-up. That’s apparently a good thing.
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NYSE: BABA
Alibaba Group
Today’s Change
(0.26%) $0.33
Current Price
$127.54
Key Data Points
Market Cap
$305B
Day’s Range
$126.61 – $128.11
52wk Range
$103.71 – $192.67
Volume
37.4K
Avg Vol
11.5M
Gross Margin
39.26%
Dividend Yield
0.83%
3. Alibaba
China’s e-commerce pioneer isn’t accelerating its business the way Alphabet and Meta have been doing lately. Alibaba has posted four consecutive fiscal years of single-digit top-line growth. Making matters worse, the pace has decelerated in back-to-back years.
Alibaba’s revenue slowed to 3% growth in fiscal 2026. Despite the slowdown, Alibaba stock more than doubled last year. It’s a different story this year, with Alibaba’s double-digit price decline. Alphabet, Alibaba is entering the AI chip market. With current trade restrictions between China and the U.S., the world’s second most populous nation is turning to hometown heroes.
Alibaba can afford to go big in emerging markets. Its Taobao and Tmall e-commerce hubs generate the lion’s of its earnings, giving Alibaba the flexibility to chase the AI opportunity. It’s worth noting that this move doesn’t mean Wood sees China as a growth opportunity again. It actually sold s of Chinese search engine leader Baidu (BIDU +1.57%) on Wednesday, just as it was loading up on fellow Chinese tech bellwether Alibaba. Wood is always making interesting moves.
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About the Author
Rick Munarriz is a contributing Motley Fool stock analyst and long-time contributor to the company’s free offerings and premium investing services, including Rule Breakers and Supernova. He has analyzed stocks across media and entertainment, retail and restaurants, and emerging technologies for The Motley Fool for 30 years. Rick holds an MBA from the University of Miami, once traveled the country with his band Paris By Air, and on weekends he can be seen on stage at Just The Funny theater in Miami as an improv comedy performer and co-owner. He is a regular guest on CNBC, Fox Business, BBC, and NPR for his expert stock analysis. He lives with his family in Miami and Celebration, Florida.
Stocks Mentioned
Alphabet
NASDAQ: GOOGL
$363.18
(+1.17%)+$4.19
Motley Fool Stock Advisor’s Latest Pick
—% Avg Return
Alphabet
NASDAQ: GOOG
$360.80
(+1.44%)+$5.12
Meta Platforms
NASDAQ: META
$635.14
(+1.95%)+$12.16
Baidu
NASDAQ: BIDU
$135.18
(+1.88%)+$2.50
Alibaba Group
NYSE: BABA
$128.04
(+0.65%)+$0.83
*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.
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