Cathie Wood’s ARK Invest ETFs are some of the hottest funds after 2020’s huge stock market gains. Seven ARK Invest stocks to buy and watch are Coinbase, DraftKings, Roku, Block, Teladoc Health, Tesla and Zoom Video.
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. For the year, the ARKK finished down 24% compared to the Nasdaq’s 21.4% advance.
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).
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 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.
ARK Invest Stocks To Buy And Watch
Amid the current stock market uptrend — according to IBD’s market outlook — investors should focus on buying top stocks breaking out past correct buy points.
|Company Name||Symbol||Closing Price||Weight In ARKK|
Source: ARK funds data as of Dec. 22, 2021
Cryptocurrency exchange Coinbase debuted on April 14, 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 over 40% off its post-IPO highs. In recent weeks, shares gave up the entirety of a big gain past a double bottom‘s 280.71 buy point following an Oct. 15 breakout, triggering the key round-trip sell rule. COIN shares are sharply below their 50-day benchmark.
The large stake in Coinbase represents another one of the Ark Invest stocks that offers more exposure to cryptocurrencies.
Coinbase stock rose almost 3% Wednesday.
DraftKings is an online sports platform that allows users to play daily fantasy games and win cash prizes. The company is poised to take advantage of the expanding legalization of digital sports betting across the U.S.
DraftKings stock remains below its key 50-day moving average, and the long-term 200-day line. Shares are about 70% off their 52-week high.
DKNG stock rallied 5% Wednesday.
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. 23, Zoom tumbled after the company reported third-quarter earnings and revenue that edged by estimates amid elevated turnover of small business customers. Zoom stock sold off as some analysts focused on slowing billings growth.
On Wednesday, Zoom stock was up 4.4%. Shares are about 70% off their 52-week high.
Roku stock is trading more than 65% off its 52-week high amid sharp weakness in recent months. On Dec. 8, Alphabet (GOOGL) and Roku ended their video streaming spat under a new multiyear distribution deal for the YouTube app and the separate YouTube TV app.
ROKU shares rose 5.5% Wednesday.
This Cathie Wood Stock Pick Tests Key Level
Block is a digital payments and cryptocurrency leader. Block stock is about 65% off its 52-week high and sharply below its 50-day and 200-day moving averages.
According to IBD Stock Checkup, Block stock shows a 42 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.
Block stock was up more than 9% Wednesday.
Why Tesla Is One Of The Top ARK Invest Stocks
Tesla stock is one of the top ARK Invest stocks, with whopping 7.75% weighting in the ARKK ETF portfolio. In mid-January 2021, ARK Invest unveiled its 2025 price target on Tesla stock of $3,000 a share.
Tesla stock rallied more than 1% Wednesday. In recent weeks, the EV leader gave up its critical 50-day moving average line and triggered the 7%-8% loss-cutting sell rule from a 1,119.10 trend line buy point. Tesla shares are trying to find support around their 200-day line.
The EV giant is an IBD Leaderboard stock.
Teladoc Health Stock
Teladoc Health provides on-demand health care services, such as nonemergency doctor’s appointments, online. More doctors and patients are opting for telemedicine due to Covid-19. Teladoc is one of the biggest ARK Invest stocks, with a nearly 6% portfolio weighting in the ARKK portfolio.
TDOC stock is trading about 75% off its 52-week high. Shares advanced 7.4% Wednesday.
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