On Monday, trading activity increased at Arch Invest. The family of aggressive growth exchange-traded funds (ETFs) started the new trading week with the busiest day of 2026, in terms of the number of stocks it bought.
With Cathy Wood at the helm, Arc is always on the lookout for price asymmetries. The recent volatility will bring out the shopper in the co-founder and CEO of Ark Invest.
Where to invest $1,000 now? Our analyst team recently revealed what they believe 10 Best Stocks Join Stock Advisor when you buy now. View Stock »
Of the many stocks Wood bought for Arch on Monday, three names stood out to me CoreWeave (NASDAQ: CRWV ), Datadog (NASDAQ: DOG )and Circle Internet Group (NYSE: CRCL). All three were his previous positions in ETFs. Let’s take a closer look at three new purchases.
CoreWeave is one of two stocks in Wood’s shopping bag that weren’t even publicly traded a year ago. The artificial intelligence (AI) infrastructure play hit the $40 per share market in March. After a slow start, investors were drawn to the story and potential of CoreWeave.
As a hyperscaler, CoreWeave offers optimized data center solutions for resource-intensive AI workloads. Shares went on to trade as high as $187 in the summer, but they are now trading for less than half that.
CoreWeave stock has an interesting origin story. It was started by hedge fund traders who pooled money to buy GPUs to mine crypto. It was a side business while they worked.
After a particularly challenging crash in cryptocurrencies several years ago, hedge fund managers were at a crossroads: Do they cut their losses and sell their GPUs, or do they take advantage of the fact that many people think the same thing and make the most of the fire sale to expand their arsenal? They chose the latter, and it has paid off.
At the time, they figured they could use the power of their GPUs to help movie studios crank out special effects and potentially ride the initial wave of AI. Once again, the latter choice has paid off. Not going to Hollywood has opened up a more lucrative field for the hyperscalar revolution.
Trailing revenue has more than tripled for CoreWeave. This kind of growth isn’t sustainable, but looking at 136% top-line growth for 2026, it’s not too shabby either. Its order backlog nearly doubled from last year — to $55.6 billion — with room to run for a company with just $4.6 billion in subsequent revenue.
The good news is that Datadog has more than tripled since going public in 2019. The bad news is that almost the entire boom occurred in its first two years of business. Shares of the enterprise software provider, which offers cloud monitoring and other business technology modules, have risen by less than 30% over the past five years. Recent investors have made it worse, as Datadog stock has shed 36% of its value since peaking in October.
