Cathie Wood’s ARK Invest ETFs were some of the hottest funds after 2020’s huge stock market gains. But those funds were hit hard in 2021 and continue to break down in 2022. Five Cathie Wood Ark Invest stocks to watch are Coinbase, Roku, Block, Tesla stock and Zoom Video.
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Is ARKK A Buy Right Now?
The ARK Invest investment company’s flagship fund is ARK Innovation ETF (ARKK). The ARKK ETF focuses on companies that exhibit “disruptive innovation,” a technologically enabled new product or service that potentially changes the way the world works.
The ARK Innovation ETF surged more than 152% in 2020, handily beating the Nasdaq’s hefty 43.6% return. But the ARKK ETF sharply underperformed the Nasdaq in 2021, finishing down 24% compared to the Nasdaq’s 21.4% advance. That underperformance continued into 2022 with the ARKK ETF down more than 62% through Nov. 22 compared to the Nasdaq’s 28.6% fall through the same period.
With the ARKK ETF about 70% off its 52-week high, the ETF is not a buy right now. Wait for the ETF to halt its current downtrend, form a new base and then break out past a correct buy point to indicate the proper time to buy. The ARKK ETF rose 0.3% Wednesday.
Other ARK ETFs include Autonomous Technology & Robotics (ARKQ), Next Generation Internet (ARKW), Genomic Revolution (ARKG), Fintech Innovation (ARKF) and the recently debuted Space Exploration and Innovation (ARKX).
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The ARKK fund’s huge gain in 2020 resulted from big stock success stories in cutting-edge tech areas: DNA sequencing, robotics, artificial intelligence, energy storage and blockchain technology.
“Disruptive innovation is often not priced correctly by traditional investment strategies because people may not understand how big the ultimate opportunities are going to be. They aren’t sizing the opportunity and they aren’t analyzing the disruption,” Wood, the founder and CEO of ARK Invest, commented on the company’s website.
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ARK Invest Stocks To Watch
ARK Invest stocks to watch, and their tickers, include Coinbase Global (COIN), Roku (ROKU), Block (SQ), Tesla (TSLA) and Zoom Video (ZM).
| Company Name | Symbol | Closing Price | Weight In ARKK |
|---|---|---|---|
| Zoom Video | (ZM) | 77.15 | 9.52% |
| Tesla | (TSLA) | 169.91 | 7.46% |
| Roku | (ROKU) | 54.36 | 7.25% |
| Exact Sciences | (EXAS) | 42.23 | 6.82% |
| Block | (SQ) | 62.72 | 5.41% |
| UiPath | (PATH) | 11.94 | 4.65% |
Source: ARK funds data as of Nov. 22, 2022
Coinbase Stock
Cryptocurrency exchange Coinbase debuted on April 14, 2021 pricing at $250 a share. Coinbase stock closed its first day of trading 328.28, up 31.3%, for a valuation of $87.3 billion. COIN stock is trading more than 85% off its 52-week high.
COIN shares are sharply below their 50-day and 200-day benchmarks after hitting a new all-time low on Nov. 21 amid the unraveling of leading crypto exchange FTX. COIN stock rose 1% Wednesday.
The large stake in Coinbase represents another one of the Ark Invest stocks that offers more exposure to cryptocurrencies.
Zoom Video Stock
Zoom Video is the leader in modern enterprise video communications, with a cloud platform for video and audio conferencing, chat, and webinars across mobile, desktop, and room systems.
On Nov. 21, the company reported October-quarter revenue and earnings that topped estimates amid lowered expectations. But guidance for ZM stock came in below Wall Street’s targets.
On Wednesday, Zoom stock was down 0.3%. Shares are about 70% off their 52-week high.
Roku Stock
Roku stock is trading around 80% off its 52-week high amid sharp weakness over the last 16 months. On Nov. 2, the streaming video platform posted a bigger-than-expected loss in the second quarter, missed its sales target, and offered weak guidance.
ROKU shares rose 0.2% Wednesday.
Block Stock
Block is a digital payments and cryptocurrency leader. The stock is about 72% off its 52-week high and sharply below the 200-day moving average.
According to IBD Stock Checkup, Block stock shows a 47 out of a perfect 99 IBD Composite Rating. The IBD Composite Rating helps investors easily measure the quality of a stock’s fundamental and technical metrics.
On Nov. 4, the company reported September-quarter earnings and revenue that topped analyst estimates.
Block stock moved up 0.6% Wednesday.
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Why Tesla Stock Is One Of The ARK Invest Stocks To Watch
Tesla stock is one of the top ARK Invest stocks, with whopping 7.5% weighting in the ARKK ETF portfolio. On April 13, Ark Invest modeled a $4,600 price target on the electric-vehicle giant. The valuation was published before Tesla’s 3-for-1 stock split on Aug. 24.
Tesla stock skidded 2.7% Wednesday, threatening to extend a losing streak to three sessions.
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