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 again in 2022. Five Cathie Wood Ark Invest stocks to buy and watch are Coinbase Global (COIN), Roku (ROKU), Block (SQ), Tesla (TSLA) and Zoom Video Communications (ZM).
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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 in 2022, with the ARKK ETF plunging 67% vs. the Nasdaq’s 33.1% annual loss. The ARKK ETF is rebounding so far in 2023, up 23.5% through April 6.
With the ARKK ETF about 41% 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 fell 0.5% Monday.
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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How To Invest Like Cathie Wood: Focus On Game Changers
The ARKK fund’s huge gain in 2020 resulted from big stock success stories in cutting-edge tech arenas: 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 Buy And Watch
Cathie Wood stocks to buy and watch include Coinbase, Roku, Block, Tesla and Zoom Video.
| Company Name | Symbol | Closing Price | Weight In ARKK |
|---|---|---|---|
| Tesla | (TSLA) | 185.06 | 9.85% |
| Zoom Video | (ZM) | 71.85 | 8.25% |
| Roku | (ROKU) | 64.08 | 7.68 |
| Coinbase | (COIN) | 61.44 | 6.47% |
| Block | (SQ) | 68.10 | 6.35% |
| Exact Sciences | (EXAS) | 66.36 | 6.14% |
Source: ARK funds data as of April, 6, 2023
Coinbase Stock
Cryptocurrency exchange Coinbase debuted on April 14, 2021 pricing at $250 per share. But amid huge losses since the IPO, COIN stock is trading more than 60% off its 52-week high.
COIN shares are back above their 50-day line, forming a cup with handle with a 85.48 buy point. But the stock is far from its latest buy point. Shares dropped 6.8% Monday.
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 Feb. 27, Zoom reported January-quarter earnings and revenue that topped estimates amid lowered expectations, with mixed 2023 guidance as cost-cutting improved expected profitability.
On Monday, Zoom stock was up 3.3%. Shares are about 48% off their 52-week high.
Roku Stock
Roku stock is trading around 50% off its 52-week high amid sharp weakness over the last 21 months.
On Feb. 15, Roku smashed estimates for new users and revenue in the fourth quarter. The Silicon Valley company added 4.6 million new active accounts in the holiday quarter, bringing its total to 70 million. Analysts had predicted 3.04 million new users.
Roku lost $1.70 per share in the quarter on sales of $867 million amid a difficult advertising climate. It was still better than analyst forecasts for a $1.72 loss. In the year-earlier period, Roku earned 17 cents per share on sales of $865 million.
ROKU shares gained 1.5% Monday.
Block Stock
Block is a digital payments and cryptocurrency leader. The stock is about 50% off its 52-week high and below the long-term 200-day moving average.
According to IBD Stock Checkup, Block stock shows a 66 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 Feb. 23, Square-parent Block reported fourth-quarter earnings that missed estimates while revenue and gross profit edged past Wall Street targets. Cash App profit growth topped expectations in the quarter.
Block stock moved up 0.7% Monday.
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Why Tesla Stock Is One Of The ARK Invest Stocks To Watch
Tesla stock rebounded 1.3% Monday, recovering a small part of Thursday’s 9.75% earnings-fueled dive. Last week, shares hit their lowest level since Jan. 26. In recent weeks, shares triggered the 7%-8% loss rule from a buy point at 200.76 in a cup with handle. And they are trading sharply below their 50-day line, a key level. The stock closed Monday 55% off its 52-week high.
TSLA stock threatened to give up Friday’s gains, trading down 2.2% in Monday trade.
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