CATHIE WOOD NOW OWNS 22 MLN SHARES. Source: Piotr Swat / Shutterstock.com
https://finance.yahoo.com/news/cathie-wood-just-bought-3-190057515.htmlRecursion Pharmaceuticals (NASDAQ:RXRX) is using artificial intelligence (AI) to discover new drugs. AI chipmaker Nvidia (NASDAQ:NVDA) invested $50 million in the biotech last summer through a private investment in public equity (PIPE) financing deal. It also allows Recursion access to its AI tools to assist in drug discovery.
Last month Nvidia also announced Recursion would be the first third-party biotech participating on its new generative AI BioNeMo platform for drug development.
RXRX stock got a huge boost from the earlier partnership but the stock continues climbing. Shares are up 37% year to date and 67% over the last 12 months. Wood began investing heavily in Recursion before the Nvidia deal, but started ramping up her purchases afterward. Her holdings went from around 7 million shares in November to over 22 million shares today.
AI potentially makes the long, arduous drug discovery process quicker and less expensive. Recursion delivered a bit of a dud in the earnings department the other day, though, causing RXRX stock to crumble 17%. The biotech generated less than $11 million in fourth-quarter revenue, almost half of what Wall Street was expecting, though net losses were slightly narrower than forecast.
With backing from major global pharmaceuticals like Bayer (OTCMKTS:BAYRY), Recursion Pharmaceuticals seems like a good bet to recover and move higher once more.
On the date of publication, Rich Duprey did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
Rich Duprey has written about stocks and investing for the past 20 years. His articles have appeared on Nasdaq.com, The Motley Fool, and Yahoo! Finance, and he has been referenced by U.S. and international publications, including MarketWatch, Financial Times, Forbes, Fast Company, USA Today, Milwaukee Journal Sentinel, Cheddar News, The Boston Globe, L’Express, and numerous other news outlets.