Cathie Wood Goes Bargain Hunting: She Just Bought 2 Stocks That Wall Street Thinks Will Climb 50% and 190%

Cathie Wood's Ark Innovation fund, which has surged 80% over the past year, continues to apply her strategy of acquiring innovative companies during market pullbacks, recently increasing positions in gene-editing biotechs CRISPR Therapeutics (CRSP) and Intellia Therapeutics (NTLA). Wood bought CRSP after a 20% dip, leveraging its approved Casgevy treatment and $1.7 billion cash, while adding NTLA, which is nearing regulatory submission for its lead candidate NTLA-2002 and holds $630 million in cash, underscoring her long-term conviction in the high-potential gene-editing sector despite current market volatility.

Analysis

Ark Invest has increased its positions in gene-editing biotechs CRISPR Therapeutics (CRSP) and Intellia Therapeutics (NTLA), capitalizing on recent stock price weakness in a move consistent with its long-term, high-conviction strategy. The purchase of CRSP follows a 20% decline from its recent high, despite the company having an approved product, Casgevy, for blood disorders. The commercial rollout of Casgevy is gradual, with 75 treatment centers activated and cells from 115 patients collected, indicating that significant revenue generation will take time. However, CRSP is well-capitalized with $1.7 billion in cash to support its pipeline in oncology and autoimmune diseases. Intellia Therapeutics (NTLA) represents a pre-commercial investment with a higher risk-reward profile. Its lead candidate, NTLA-2002 for hereditary angioedema (HAE), has demonstrated a compelling 98% reduction in attack rates in trials, with a regulatory submission planned for the second half of next year. NTLA's cash position of over $630 million is projected to fund operations through its first potential product launch in H1 2027. While the article notes highly optimistic Wall Street price targets of 50% and 190% upside for CRSP and NTLA respectively, the core investment thesis is predicated on the long-term disruptive potential of CRISPR technology and specific company execution rather than short-term price movements.

Key Decisions for Investors

• Investors with a high-risk tolerance and long-term horizon could consider the recent stock dips in CRSP and NTLA as a strategic entry point, aligning with Ark Invest's thesis on disruptive gene-editing technology.
• For differentiated exposure, investors might view CRSP as a de-risked play with a commercial product, while NTLA offers higher, catalyst-driven upside contingent on the successful regulatory submission and approval of its lead candidate NTLA-2002.
• Key performance indicators to monitor are patient uptake and revenue progress for CRSP's Casgevy, and for NTLA, upcoming clinical data and the execution of its regulatory filing timeline next year.
• While both firms possess strong cash positions mitigating near-term financing risks, portfolio managers should weigh the inherent volatility and extended timelines associated with the biotech sector against the significant long-term growth potential.