Cathie Wood is a famous name on Wall Street. She is the CEO of Ark Invest, an investment management firm that focuses on companies with disruptive potential to outperform the market. Wood's track record is the subject of many debates, with critics claiming that some of her firm's actively managed funds have eroded shareholder value over the long run.
However, one thing is for sure: At least some of her stock picks are worth serious consideration for growth-oriented investors. Let's consider two: Spotify Technology (SPOT 0.33%) and Pinterest (PINS 6.37%).
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1. Spotify
Spotify started 2025 on a strong note but was southbound for much of the second half of the year. Between weak guidance and the company parting ways with its longtime CEO, many investors chose to run for the hills.
However, there is still a lot to like about Spotify, especially for investors willing to hold on to the stock for at least five years. Despite competition from some of the world's largest tech companies, Spotify has established itself as a leader in the music streaming field, holding the top global market share.
NYSE: SPOT
Key Data Points
The company benefits from the network effect, as deals with record labels and artists attract more customers onto its platform, and vice versa. Spotify's strategy to double down on podcasts could also be an important long-term growth driver. Podcasts can help increase engagement and avoid the expensive royalty model present in its music business, thereby boosting its margins.
Spotify still sees significant room to grow its ecosystem -- the company plans to reach a billion monthly active users (MAUs) by 2030. It currently isn't that far from that goal. It also sees plenty of room to expand paying members, as many of its current customers are ad-supported. Finally, Spotify is improving its platform and driving increased engagement through various AI initiatives -- all good reasons that the stock looks like a buy after its poor performance over the past six months.
2. Pinterest
Pinterest also faced issues in 2025. The company's financial results weren't as strong as expected, especially as tariffs affected ad demand on its platform.
However, several things suggest that Pinterest can bounce back. The company's ecosystem continues to expand. MAUs on its platform jumped by 12% year over year to 600 million in the third quarter.
NYSE: PINS
Key Data Points
On top of user growth, Pinterest is monetizing its audience even better. The company's average revenue per user (ARPU) is still moving in the right direction. That's especially the case in international markets, where ARPU is growing much faster.
Even with a near-term slowdown, growing users and better monetization will eventually pay off for Pinterest, strengthening its network effect. Pinterest is also using AI to boost engagement, something that has worked wonders for other social media giants such as Meta Platforms. So, despite recent setbacks, Pinterest could recover and perform well over the long run.
