Cathie Wood crushed the market in 2025. Can she keep it going in 2026? We're just three weeks into the new year, but the co-founder CEO of Ark Invest is off to an encouraging start. The largest of her company's exchange-traded funds (ETFs) has posted a year-to-date return, comfortably ahead of the otherwise flat market. If the ETF can average weekly gains of just 1%, it's going to be a great year.
Wood was relatively quiet on Wednesday, putting money to work on only five stocks. Three that intrigue me are Netflix (NFLX 0.61%), Tempus AI (TEM 5.98%), and Kodiak AI (KDK 2.23%). Ark added to existing positions for all three on Wednesday. Let's take a closer look.
Image source: Getty Images.
1. Netflix
Shares of Netflix have plummeted 35% since their summertime peak. The top dog among premium streaming service stocks has surrendered a good chunk of its previous gains since it was announced as the winning bidder for Warner Bros. Discovery (WBD 1.37%) seven weeks ago.
Netflix has surrendered $82 billion in market cap since it was crowned the victor in the Warner Bros. Discovery sweepstakes, coughing up $113 billion since it was confirmed as a player in the bidding war two months ago. That's a lot of pain for an $83 billion potential acquisition. A poorly received fourth quarter this week didn't help either.
NASDAQ: NFLX
Key Data Points
Netflix stock declined 2% in Wednesday's trading -- as the general market was surging -- after Tuesday afternoon's financial update. The report was solid at first glance. Revenue rose 18%, its strongest top-line jump in more than four years. Net income rose a better-than-expected 30%.
Guidance is where the wheels started to come off. The fresh outlook for the new year is within Wall Street's revenue range, calling for 12% to 14% growth in 2026. It did scare some investors away by modeling a lighter-than-consensus 31.5% operating margin for all of 2026. That led some analysts to lower their earnings targets slightly for the next two years.
Netflix is still growing. Trailing free cash flow is now up to $9.5 billion. It no longer reports quarterly subscriber numbers, but it did note that it crossed the 325 million subscriber milestone during the quarter. After seeing ad revenue soar by more than 150% last year, it expects business to roughly double again in 2026.
NASDAQ: TEM
Key Data Points
2. Tempus AI
Tempus AI is leaning on artificial intelligence enhancements to drive engagement with its oncology and hereditary testing products. Growth is on a tear, powered by healthy organic gains but also a couple of acquisitions.
Revenue has risen 75%, 90%, and 85% through the first three quarters of 2025. The stock has almost doubled since going public at $37 two years ago, but it's still trading 37% below its peak last year. Analysts expect top-line growth to decelerate to 24% in 2026. Profitability is still years away, but losses should narrow in the coming year.
NASDAQ: KDK
Key Data Points
3. Kodiak AI
One of the smallest stocks on Ark Invest's radar is Kodiak AI. Its market cap, at $1.6 billion, is modest, but its ambitions are high. Like Tempus, Kodiak is leveraging AI tools to serve a specific business niche. They obviously proudly wear AI at the end of their name.
Kodiak's market is crowded with larger self-driving-car stocks. It's a small player, but it has a unique model. Kodiak's eyeing the commercial trucking and public sector markets. A truck driver can turn to Kodiak's platform to generate revenue without having to be behind the wheel. There are only 10 driver-owned trucks currently on the fleet, but more than 3 million miles have been driven on the next-gen platform.
Kodiak began trading just four months ago, but it's already 19% lower than last month's high. This is a bet that will require patience, and Wood has proved that she's will to make multiyear investments in companies that she believes will continue to grow and appreciate.
