Cathie Wood Goes Bargain Hunting in China: 3 Stocks She Just Bought

Group 1 - Cathie Wood, founder and CEO of Ark Invest, is actively buying stocks, focusing on Chinese companies, including Alibaba, Pony AI, and Baidu [1][2][8] - Alibaba's stock has surged 95% this year, but its revenue growth remains in the single digits for the fourth consecutive year, and it has missed Wall Street profit targets in two recent quarters [3][4] - Alibaba's domestic e-commerce operations, Taobao and Tmall, generate 45% of its consolidated revenue and 113% of its adjusted EBITDA, indicating strong profitability in this segment [5][6] Group 2 - Alibaba has a cash-rich balance sheet, allowing for shareholder returns through dividends and share buybacks, with shares trading at a reasonable forward earnings multiple of 16 times projected earnings [7] - Baidu and Alibaba are trading at forward earnings multiples in the teens, while Pony AI is considered expensive due to its lack of profitability and early revenue growth stage, despite its advantages in autonomous driving [8]