Noted tech investor Cathie Wood has developed a loyal following in recent years. Despite the massive decline in the Ark Innovation ETF and her other funds recently, Ark Invest funds continue to attract new buyers, partially through that fund's long-term success.

Wood also sees many innovation platforms progressing simultaneously in what she calls the greatest period of transformation since the early 1900s. She believes emerging industries can drive a compound annual growth rate (CAGR) of 30% over the next 10 years.

She has added to many of her positions to capitalize on this innovation and depressed stock prices. Stockholders might be well served to follow her lead and make investments in three Wood growth stock holdings: Roku (ROKU 1.91%), Twilio (TWLO -0.55%), and Unity Software (U -1.22%). Let's look at each.

1. Roku

Roku is Cathie Wood's second-largest holding in the Ark Innovation ETF and her fifth-largest holding in Ark Invest funds overall. Its streaming platform has helped to support some innovations on which Wood focuses.

Roku has profited from democratizing the streaming industry on many levels. It has become a largely neutral player among platforms, attracting channels and viewers alike. While Roku wants you to buy a Roku TV, its most significant revenue stream has come from drawing advertisers. Roku's platform has attracted ads from roughly 90% of the Ad Age Top 200 brands.

This platform helped net revenue increase by 55% in 2021. With its users largely out of lockdown, growth has slowed, but Q1 net revenue came in at $734 million, 28% higher than year-ago levels.

Still, the slower growth and supply chain issues related to players helped to raise operating costs by 55%. This brought about a Q1 loss of $26 million versus a $76 million profit in the year-ago quarter.

Amid the negative sentiment, Roku's stock price has fallen by over 80% from its 52-week high. Nonetheless, its price-to-sales (P/S) ratio of 3.7 is near a record low, indicating its sell-off may have gone too far.

2. Twilio

Wood also monitors innovation in the cloud and communication spaces, a factor that likely drew her to Twilio. It is the 11th-largest holding in her combined portfolios and the 10th largest in the Ark Innovation ETF.

Twilio has prospered due to the first-mover status on its communication APIs. Its platform offers voice, text, email, and video communication on one app, all without the need for coding experience. Businesses such as Lyft and DoorDash would not be able to operate without this type of software.

In Q1 2022, Twilio brought in $875 million in revenue, 48% more than in the first quarter of 2022. However, losses rose to $222 million, up from $207 million in the year-ago quarter.

Revenue grew by 61% in 2021, but Twilio's apps became more critical that year when many users had locked down. With reopenings leading to slowing growth, investors have also become frustrated with the growing losses, and such feelings may have contributed to a near-80% decline in the stock price.

Nonetheless, its P/S ratio has fallen from 37 in February 2021 to just 4.43 today. Such a valuation could make Twilio worthwhile as its industry expands.

3. Unity Software

Wood's focus on innovation has also embraced the potential of the metaverse. To this end, Unity has become the 12th-largest holding in the Ark Innovation ETF and 13th across all Ark funds.

She has likely invested in Unity because it will serve as one of the primary building blocks of the metaverse. It calls itself the "world's leading platform" for creating content that is 3D and real-time. Developers apply its applications to gaming, engineering, architecture, film, and many other industries. Moreover, it can design content for PCs, smartphones, VR headsets, and other devices.

Metaverse-focused developers have certainly taken to the platform. In Q1, revenue came in at $320 million, 36% higher than it did one year ago. However, since operating expenses rose by 39% over that period, losses widened to $182 million, up from $108 million one year ago. Additionally, the slowing will continue as the company expects only single-digit revenue growth in Q2 before recovering to the 22% to 28% range for the year.

And like with many tech stocks, the sentiment shifted strongly against Unity, as it has lost almost 85% of its value since late last year. Still, the P/S ratio has fallen to 7.74, near record lows for the company. Such a valuation could attract investors when revenue growth again turns higher.