Ark Invests Stocks to Watch: 5 Stocks to Own Cathie Wood’s Ark ETF: Tesla Stocks Rise

Cathie Wood’s ARK Invest ETFs were some of the hottest funds after the huge stock market gains in 2020. But those funds were hit hard in 2021 and continue to break down in 2022. Five ARK Invest stocks to watch than Coinbase, Roku, Block, Tesla stock and Zoom Video.


Is ARKK A Buy Now?

The main fund of investment company ARK Invest is ARK Innovation ETF (ARKK). The ARKK ETF focuses on companies that demonstrate a “breakthrough innovation”, a new product or service with technological potential that could change the way the world works.

The ARK Innovation ETF increased more than 152% in 2020, surpassing the Nasdaq’s whopping 43.6% return. But the ARKK ETF largely 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 November 22 compared to the Nasdaq’s 28.6% drop over the same period.

With the ARKK ETF about 70% from its 52-week trail, the ETF is not a buy right now. Wait for the ETF to stop its current downtrend, form a new base and then break out above a right buy point to signal the right time to buy. The ARKK ETF rose 1.2% on 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).

IBD’s latest MarketDiem newsletter brings you actionable ideas for stocks, options and crypto straight to your inbox.

How To Invest Like Cathie Wood: Focus On Game Changers

The huge gains of the ARKK fund in 2020 were the result of major success stories of stocks in cutting-edge technology areas: DNA sequencing, robotics, artificial intelligence, energy storage and blockchain technology.

“Traditional investment strategies often don’t properly price disruptive innovation because people may not realize how big the ultimate opportunities will be. They’re not sizing the opportunity and they’re not analyzing the disruption,” Wood , the founder and CEO of ARK Invest, commented on the company’s website.

Stock Market ETF Strategy And How To Invest During A Stock Market Rally

ARK Investing Stocks To Watch

ARK Invest stocks to watch, including their tickers Coinbase Global (COINS), Roku (ROKU), Block (SQ), Tesla (TSLA) and Zoom video (ZM).

Company Name Symbol Final Price Weight I 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 treasury data as of November 22, 2022

Coinbase stock

Cryptocurrency exchange Coinbase debuted on April 14, 2021 at a price of $250 per share. Coinbase stock closed its first day of trading at 328.28, up 31.3%, with a valuation of $87.3 billion. COIN stock is trading more than 85% off its 52-week high.

COIN shares are well below their 50-day and 200-day benchmarks after hitting a new all-time low on November 21st among the leading emerging crypto exchanges FTX. COIN stock rose 1.2% on Wednesday.

The large stake in Coinbase is another of Ark Invest’s stocks that offers greater exposure to cryptocurrencies.

Stock Video Zoom

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 November 21, the company reported October quarter revenue and earnings that beat estimates amid lowered expectations. But guidance for ZM stock came in below Wall Street’s targets.

On Wednesday, Zoom stock was down 2.3%. Shares are about 70% off their 52-week high.

Stock Roku

Roku stock is trading about 80% off its 52-week high amid sharp weakness over the past 16 months. On Nov. 2, the streaming video platform posted a bigger-than-expected second-quarter loss, missed its sales target, and offered weak guidance.

ROKU shares rose 2.3% on Wednesday.

Stock Block

Block is a leader in digital payments and cryptocurrency. The stock is about 72% off its 52-week high and well below the 200-day moving average.

According to IBD Stock Check, Block Stock shows 47 out of a perfect 99 IBD Composite Rating. The IBD Composite Rating helps investors easily gauge the quality of a stock’s fundamental and technical metrics.

On November 4, the company reported September quarter earnings and revenue that topped analysts’ estimates.

Block stock moved up 0.3% on Wednesday.

IBD Live: A New Tool For Daily Stock Market Analysis

Why Tesla Stock is one of the ARK investment stocks to Watch

Tesla stock is one of ARK Invest’s top holdings, with a whopping 7.5% weighting in the ARKK ETF portfolio. On April 13, Ark Invest set a $4,600 price target on the electric vehicle giant. The valuation was published before Tesla’s 3-for-1 stock split on August 24.

Tesla stock rose 4.7% on Wednesday after Citigroup upgraded the stock from sell to neutral.


Top Growth Stocks To Buy And Watch

Learn How To Beat The Market With IBD’s ETF Market Strategy

Find The Best Long-Term Investments With IBD’s Long-Term Leaders

MarketSmith: Research, Charts, Data And Coaching All In One Place

Leave a Reply

Your email address will not be published.