Cathie Wood Goes Bargain Hunting: 3 Stocks She Just Bought

These are the top models we’re loving right now for the road, trail, and race day.

By Susheel Kumar | August 12, 2024

Amazon did get better during the last six trading days since the uninspiring financial update. It announced late last week that it was teaming up with TikTok to make it easier for influencers on the short-form video platform to make some money by promoting products sold on Amazon. The partnership will allow TikTok's massive audience to buy promoted Amazon products without leaving the video app.

It's fair to say that Amazon's latest quarter wasn't great. Revenue rose a weaker-than-expected 10% in the second quarter, and its guidance calling for an 8% to 11% increase is more of the same. It was a different story at the other end of the income statement, with earnings per share more than doubling to land ahead of Wall Street profit targets. However, Amazon's slowest year-over-year top-line growth in more than a year is not a good look for a stock that hit an all-time high earlier this summer.

This is also more than just an e-commerce company. Its huge Amazon Web Services (AWS) cloud-hosting platform accounted for 89% of the operating profit in its latest quarter. That's some lush greenery. Picking up shares at a nearly 10% discount to where they were six trading days ago -- and 17% off the all-time high it scored just last month -- doesn't seem like a bad idea for long-term believers in Amazon's reign and forest.

Roku is another stock trading lower after announcing fresh financials earlier this month, but this markdown seems even more unfair. The TV streaming pioneer exceeded expectations on all fronts with its second-quarter report. It was a "beat and raise" performance, as guidance also surpassed analyst forecasts.

The platform's popularity continues to grow, and not just because it has now posted double-digit revenue growth for five consecutive quarters. Roku is reaching 83.6 million streaming households, an increase of 14% over the past year. The number of hours streamed on the platform surged 20%. So, once again, we see engagement on the rise as usage is outpacing Roku's audience growth.

Roku's still in the red on a reported basis, but the losses are narrowing. Trailing free cash flow is in the nine figures, so it's not as if the company isn't a money maker. Its namesake Roku Channel has been particularly resilient, with streaming on that free ad-supported channel soaring 75% over the past year.