1 Cathie Wood Stock to Buy While It's Affordable, and 1 to Avoid (for Now)
Cathie Wood's Ark Innovation ETF (NYSEMKT: ARKK) is a one-stop shop for hot growth stocks that have the potential to disrupt their industries and make investors significantly richer in the process. But with hype comes high valuations, and with high valuations comes the risk of sharp declines during bear markets -- like during this year, when the ETF crashed by 68%.
Some of the components of the Ark Innovation fund are now priced at a decent buying point, but others remain fraught with valuation risk or other sources of downside. Let's peek at one of Wood's favorites that's ripe for a (somewhat risky) investment, and then compare it to another one of her stocks that's not quite approachable just yet.
CRISPR Therapeutics (NASDAQ: CRSP) is a pre-revenue biotech that's making a splash by pioneering cutting-edge therapies created using the company's titular gene-editing technology. Wood is such a fan of the stock that it accounts for just over 4% of the Ark Innovation ETF's holdings, and while it's a speculative play, its shares are cheap enough to make it worth a (small) investment. Here's why.
Source Fool.com
