Cathie Wood, CEO and founder of Ark Invest, takes big bets on companies with high growth potential, such as Tesla (TSLA), Coinbase (COIN), Zoom Video Communications (ZM), DraftKings (DKNG), Exact Sciences (EXAS) and Shopify (SHOP).
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Tesla stock, UiPath (PATH), Roku (ROKU) Zoom Video and Coinbase are Ark Invest’s top holdings as of June 23. Exact Sciences, Square-parent Block (SQ), Shopify, Teladoc Health (TDOC) and DKNG stock round out Cathie Wood’s largest 10 positions.
DKNG stock is Ark Invest’s top 2023 performer among its major holdings, up 119.8%. TSLA stock is close behind, up 118%. Exact Sciences (87.1%) and SHOP stock (83.8%) have nearly doubled.
ZM stock is the laggard, down 1.7%. TDOC stock and Square are little changed.
Year to date, the Dow Jones has climbed 1.75%, the S&P 500 index 13.25% and the Nasdaq composite 28.9%.
Ark Invest Top Holdings’ 2023 Performance
| Company | Ticker | 2023 change | Vs. all-time high |
|---|---|---|---|
| DraftKings | DKNG | 119.8% | -66.3% |
| Tesla | TSLA | 108.3% | -38.1% |
| Exact Sciences | EXAS | 87.1% | -41.9% |
| Shopify | SHOP | 83.8% | -63.8% |
| Coinbase | COIN | 73.7% | -85.7% |
| Roku | ROKU | 53.7% | -87.2% |
| UiPath | PATH | 23.8% | -82.5% |
| Teladoc Health | TDOC | 0.4% | -92.3% |
| Block | SQ | 0.0% | -78.3% |
| Zoom | ZM | -1.7% | -88.7% |
DraftKings Stock Performance
DKNG stock traded near 52-week lows right at the end of 2022, but then took off, nearly doubling through late February. After consolidating for a couple months, the online sports betting giant broke out again. Since then, DraftKings stock has been volatile, but finding support at a rising 21-day moving average.
Tesla Stock Performance
Tesla stock plunged 65% in 2022, but has roared back in 2023. After a huge run to start the year, TSLA stock consolidated for a few months, but has run rapidly from late April. Shares broke out of a new base in early June, part of a record 13-session win streak.
Cathie Wood Pares Winners
Ark Invest has a $2,000 price target on Tesla stock in 2027, but Cathie Wood has pared her big holdings in recent weeks, including a sale of 27,841 Tesla shares on June 23. Wood has a tendency to sell stocks after a strong gain. Plus, TSLA stock has been exceeding 10% of the total value of ARK Innovation ETF (ARKK).
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Ark Invest Adds To Losers
Ark Invest is also prone to buying stocks as they sell off, aiming to load up on the cheap. Wood’s Ark added COIN stock in early June, as first Binance and then Coinbase itself faced SEC charges.
Tesla Profitable, Many Ark Stocks Aren’t
Cathie Wood bets big on companies on cutting-edge fields, from EVs to artificial intelligence, automation, telemedicine and gene editing. But that doesn’t necessarily mean these particular companies and stocks will lead the way, even on a Wood-style time horizon.
Tesla is highly profitable, though EPS is expected to fall in 2023. UiPath, Square, Shopify also are making money, with Shopify expected to deliver massive EPS growth in 2023. DraftKings isn’t profitable yet, but revenue growth is strong. Exact Sciences and Square-parent Block have solid sales growth. Roku and Teladoc have slowing revenue gains while Coinbase’s is falling.
Ark ETFs Rebound In 2023
Cathie Wood’s flagship ARK Innovation ETF dived 67% in 2022 but has rebounded 34.9% in 2023. ARKK is still 73.6% below its February 2021 peak.
The Ark Genomic Revolution ETF (ARKG) has bounced 16.2% this year but is off 71.5 % from its all-time high.
Ark Fintech Innovation ETF (ARKF) has jumped 40.2% in 2023 after setting record lows in 2022.
Ark Invest Still Underwater On Top Holdings
Ark is up big on Tesla stock. Its current position over three ETFs has an average cost basis of $85.56-$108.39. Its EXAS stock stake is close to break-even, with a $94.56-$106.19 cost basis. But it’s down roughly 50% on DKNG stock and Shopify, and is down far more than 50% on the other six stocks.
Please follow Ed Carson on Twitter at @IBD_ECarson for stock market updates and more.
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