investing strategies: Cathie Wood of Ark Invest aggressively purchased these three stocks in a single day; what’s the logic behind this move? todayheadline

Cathie Wood, Ark Invest co-founder and CEO, had one of her busiest trading days in months, adding to 17 various positions across her growth-oriented ETFs in a single trading day, as per a report. Her most interesting stock picks among them were Advanced Micro Devices (AMD), Toast (TOST), and Shopify (SHOP), reported The Motley Fool.

1. Advanced Micro Devices (AMD)

Even with an 8% slide in 2025 trading and a 36% decline over the last year, the business is holding up better than the stock chart, according to The Motley Fool. The chipmaker recently posted a 24% revenue gain and a 69% jump in its data centre segment to $3.9 billion. While the stock has had a bad stretch, with price targets cut by analysts, it is trading at a reasonable multiple of 23 times this new year’s projected earnings and less than 18 times next year’s forecasts. This could represent a buying opportunity as AMD is too cheap to ignore, according to the report.

2. Toast (TOST)

Unlike AMD, Toast’s shares more than doubled in the last year. This point-of-sale cloud platform has succeeded by embedding its service into more than 127,000 restaurant sites, a 28% increase in its restaurant count. Toast is no longer operating at a loss, and so it is an appealing growth stock. Although its valuation of 45 times forward earnings might look high, its scalability and profitability potential are what probably caught Wood’s eye, as per The Motley Fool.

3. Shopify (SHOP)

Shopify regained its footing, reporting a 31% revenue gain in its fiscal fourth quarter, as per the report. This was its best top-line growth in three years. With higher revenue in North America and internationally, as well as a robust 22% free cash flow margin, Shopify’s upbeat financial report made it an attractive choice for Wood, as per The Motley Fool. The stock jumped 3% after the fourth quarter results, and at least five analysts raised their price targets on the stock.

FAQs

Should I buy AMD stock?
Although AMD’s stock has been under pressure lately, the stock is currently at a relatively low multiple relative to its earnings estimates and hence may be an undervalued stock and might be a good time to buy, as per the report.

Is Shopify a good stock right now?
Shopify experienced rapid expansion with a 31% year-over-year fourth-quarter revenue and 22% cash flow margin growth. With this kind of performance, Shopify might be a great buy, as per The Motley Fool.