2 Soaring Cathie Wood Stocks to Buy and Hold

Cathie Wood, the chief executive officer of Ark Invest, can be somewhat of a polarizing figure, with some research indicating that her investment firm's actively managed exchange-traded funds (ETFs) have significantly destroyed shareholder value over the long run. Even if that's the case, let's give credit where credit is due. Some of Wood's picks have been fantastic performers, at least over the course of the current fiscal year. Two of them are CRISPR Therapeutics (NASDAQ: CRSP) and Spotify Technologies (NYSE: SPOT). What's more, both of these stocks have excellent prospects and could continue delivering above-average returns for a while.

Image source: Getty Images.

Where to invest $1,000 right now? Our analyst team just revealed what they believe are the 10 best stocks to buy right now, when you join Stock Advisor. See the stocks »

1. CRISPR Therapeutics

Shares of CRISPR Therapeutics, a mid-cap biotech focusing on gene editing, are up about 85% this year as the company's most advanced pipeline programs look increasingly promising. Few things can jolt a drugmaker's shares like strong clinical and regulatory progress. That's what could power CRISPR Therapeutics in the next few years. The company's CTX310 seeks to lower LDL cholesterol and triglycerides (TGs), harmful fats that can cause heart disease, stroke, and other cardiovascular conditions. With some 40 million people in the U.S. with elevated levels of either, there is a significant need for new treatment options.

CTX310 is still in the early stages of development. In an ongoing study, the medicine is showing success in lowering LDL and TGs in certain patients.

The company's other promising programs include CTX112, being developed to treat certain types of blood cancers, and CTX320, a therapy that could help lower lipoprotein(a), which, at high levels, can cause heart attacks. CRISPR Therapeutics' gene-editing approach could help raise the standards, leading to better outcomes than currently available therapies. Further, the company already has an approved medicine on the market, called Casgevy, which it developed with Vertex Pharmaceuticals. Casgevy, a medicine for a pair of rare blood disorders, isn't making massive contributions to CRISPR Therapeutics yet, but it could in a few years.

In the meantime, the company could launch -- or at least get close to launching -- one or two brand-new medicines while riding the wave of successful clinical trials. There are risks involved, naturally. Notably, potential clinical setbacks. It's essential to keep that in mind. However, given CRISPR Therapeutics' attractive pipeline for a biotech company of its size, promising results across various programs, and prior success in launching a gene-editing medicine, the company's prospects look promising. The stock could have plenty of upside even after its strong run this year.

2. Spotify Technologies

Spotify Technologies is the leading music streaming platform. That's a significant achievement. Companies like Apple, Amazon, and Alphabet -- three of the largest and most cash-rich corporations in the world -- are in this business and could use their diversified operations to run their music streaming units at a loss to attract customers, thereby undercutting Spotify's efforts.

Despite this risk, Spotify has the top market share worldwide, and the market has started to recognize this -- the shares are up about 50% in 2025. It has built a strong brand name tied to the services it offers and maintained a lead thanks to its deep network effect. The more its ecosystem grows, the more attractive it becomes to artists seeking a broad audience and publicity.

Spotify has also made smart moves, such as its push into podcasting, that have helped the platform grow, albeit at the cost of lower margins in that business. That may not have been ideal for a company that wasn't profitable, but Spotify has made significant progress on the bottom line in recent quarters.

SPOT Net Income (TTM) data by YCharts

The future should remain bright for the music streaming service. Spotify ended the second quarter with 696 million monthly active users (MAUs), up 11% year over year. However, less than half of those, just 276 million, were premium subscribers. Spotify can increase its revenue by turning more of its users into paying ones and by attracting even more business to its platform. The company is pushing to reach 1 billion MAUs by 2030, which is an attainable goal considering its current position and track record.

Lastly, Spotify has improved its platform through artificial intelligence-related initiatives, such as its virtual assistant, Spotify DJ, which is helping drive engagement on the platform, something that could lead to higher ad sales. With all that going on, the company's future looks bright.

Prosper Junior Bakiny has positions in Alphabet, Amazon, and Vertex Pharmaceuticals. The Motley Fool has positions in and recommends Alphabet, Amazon, Apple, CRISPR Therapeutics, Spotify Technology, and Vertex Pharmaceuticals. The Motley Fool has a disclosure policy.