Cathie Wood likes emerging companies that promise to disrupt industries, and Kratos Defense (KTOS) fits that bill. The company builds jet-powered drones, hypersonic rockets, and satellite ground software — equipment that is in high demand and has been proven to be highly effective in recent conflicts. Accordingly, countries worldwide are interested in scaling up their capabilities, with Kratos well-positioned to be a major supplier to NATO and allied countries.
Wood seems to like KTOS stock for that reason. The infamous investor has invested in names like Tesla (TSLA) and will probably invest in SpaceX after its upcoming initial public offering (IPO). Altogether, Cathie Wood's Ark Invest funds hold about $174 million worth of Kratos Defense. So what does she see that the sellers don't?
