Cathie Wood Seizes Market Weakness: Ark Invest Adds MercadoLibre, Intellia, and Generate Biomedicines
In a week marked by sector-wide volatility, high-profile investor Cathie Wood of Ark Invest is putting cash to work. The firm’s daily transaction disclosures revealed fresh purchases in three beaten-down stocks on Monday, signaling a classic ‘buy-the-dip’ maneuver from the growth-focused fund manager.
Ark Invest added shares of MercadoLibre (NASDAQ: MELI), Intellia Therapeutics (NASDAQ: NTLA), and newly-public Generate Biomedicines (NASDAQ: GENB). The buys come as these names face distinct headwinds, from competitive pressures to clinical trial uncertainties and a rocky market debut.
Wood, whose flagship funds delivered monumental returns in 2020 and 2025 but have since faced scrutiny, continues to double down on her long-term thematic bets on disruptive technology and genomics.
MercadoLibre: Growth at a Cost
Latin America’s e-commerce and fintech leader has seen its valuation shrink by approximately one-third since its peak last summer. A fourth-quarter earnings report last week presented a paradox: stellar revenue growth overshadowed by mounting costs.
While net revenue jumped 45% to $8.8 billion and total payment volume soared 42%, operating profit grew a mere 8%. A 50% surge in operating expenses, fueled by aggressive investments in logistics and competition in key markets like Brazil, squeezed margins. This marked the third consecutive quarter the company missed Wall Street's profit expectations, prompting at least seven analysts to cut price targets.
"The long-term thesis for Latin American digital adoption remains intact, but the path is getting more expensive," said Michael Torres, a portfolio manager at Horizon Capital. "Wood is betting that today's investments will secure unassailable market share tomorrow, but the margin compression is real and may persist through 2026."
Intellia Therapeutics: A Clinical Catalyst
Wood has consistently favored gene-editing stocks, and Intellia is a core holding. The stock, while volatile, received a significant boost Monday after the U.S. FDA lifted a clinical hold on a key drug candidate for transthyretin amyloidosis with cardiomyopathy, allowing its Phase 3 trial to proceed.
The news propelled shares 12% higher, adding to a near-doubling since December lows. Despite the rally, the stock trades at roughly half its October highs. "The FDA decision is a clear de-risking event," noted Dr. Anya Sharma, a biotech analyst. "For a pre-revenue company like Intellia, regulatory clarity is currency. Ark is likely building a position ahead of pivotal data readouts."
Generate Biomedicines: A Rocky Start for an AI Biotech
The most speculative of the trio, Generate Biomedicines, exemplifies Wood's appetite for early-stage disruption. The clinical-stage generative biology company, which uses AI to design novel protein therapeutics, went public last Friday to a harsh reception.
After pricing its IPO at $16 and raising $400 million, shares opened at $15 and closed Monday at $12.33—a 23% drop in its first two trading days. Wood was a buyer on both days, seemingly undeterred by the weak debut. "The market is skeptical of the 'AI-powered drug discovery' narrative right now," said David Chen, a venture capital partner specializing in life sciences. "Ark's purchases look like a conviction bet that the technology platform itself holds immense value, regardless of near-term sentiment."
Investor Reactions: Conviction or Contrarianism?
The moves sparked immediate debate among market watchers.
"This is vintage Cathie," said Sarah Jenkins, a retail investor from Austin, Texas. "She sees the panic and goes shopping. She has the stomach for volatility that most of us don't. I'm watching Intellia closely after that FDA news."
Others were more critical. "It's reckless," argued Marcus Thorne, a financial commentator known for his blunt style. "MercadoLibre is in a costly price war, Intellia is years from profitability, and she's catching a falling knife in a brand-new AI biotech that the market just rejected. This isn't investing; it's performance art for her ETF holders who are still down from the 2021 peak."
Analyst Anya Sharma offered a middle ground: "The common thread is foundational technology—e-commerce infrastructure, CRISPR, generative biology. Wood isn't trading earnings; she's accumulating what she believes are the architectural components of the future economy. The risk, of course, is that the future takes longer to arrive than her investors' patience lasts."
Disclosure: The Motley Fool has positions in and recommends Intellia Therapeutics and MercadoLibre.