Two Growth Stocks on Cathie Wood's Radar: Spotify and Pinterest Offer Bounce-Back Potential

Cathie Wood has established herself as one of Wall Street’s most influential voices in identifying companies with transformative potential. As CEO of Ark Invest, her investment management approach focuses on unearthing disruptive opportunities positioned to outperform the broader market. While her track record remains debated among critics and supporters alike, several of her stock selections merit serious consideration for investors pursuing long-term growth. Two compelling names worth examining: Spotify Technology (NYSE: SPOT) and Pinterest (NYSE: PINS).

Why These Two Stocks Stumbled in 2025

Both companies encountered significant headwinds during the second half of 2025, testing investor patience. Spotify began the year with momentum but reversed course amid weak forward guidance and executive transitions. Similarly, Pinterest faced disappointment when financial performance fell short of expectations, particularly as trade tariffs dampened advertising demand on its platform.

Yet beneath these near-term challenges lie fundamental strengths that suggest a meaningful recovery trajectory for both platforms.

Spotify’s Ecosystem Expansion Offers Multi-Year Growth

Despite competition from tech giants, Spotify has solidified its position as the global leader in music streaming, commanding the top market share in its category. The company benefits from a powerful network effect—as it secures deals with record labels and artists, more listeners flock to the platform, which in turn strengthens its negotiating position with content creators.

The company’s pivot toward podcast content represents a particularly strategic long-term catalyst. Podcasts improve user engagement while reducing reliance on expensive music royalty payments, thereby supporting margin expansion. Looking ahead, Spotify targets reaching one billion monthly active users by 2030, a milestone that represents meaningful runway from current levels.

The opportunity to convert more users from ad-supported to paid tiers remains substantial. Meanwhile, artificial intelligence initiatives are enhancing platform functionality and driving deeper engagement—all factors supporting the stock’s attractiveness following its recent underperformance.

Pinterest’s User Momentum Fuels Monetization Gains

Pinterest has demonstrated resilience despite recent setbacks. The platform added users at an impressive clip, with monthly active users jumping 12% year-over-year to 600 million during the third quarter. Beyond raw user growth, the company is achieving superior monetization results.

Average revenue per user continues trending positively, particularly in international markets where ARPU acceleration is notably stronger. This combination—growing audiences coupled with rising per-user economics—typically strengthens a platform’s network effects over time. Like other social media leaders, Pinterest is deploying artificial intelligence to enhance user engagement, a playbook that has generated outsized results elsewhere in the sector.

The Cathie Wood Investment Philosophy Applied

Both Spotify and Pinterest embody the characteristics that typically attract growth-oriented investors following market pullbacks. Each operates in a market with secular tailwinds, possesses defensible competitive positions, and maintains clear pathways to expand their addressable opportunities. Cathie Wood’s approach to identifying such companies—those with disruptive models and expanding ecosystems—underscores why these two warrant closer examination by long-term investors.

Despite recent weakness, both platforms possess the underlying mechanics for sustained recovery and market outperformance in coming years.