Cathie Wood, CEO and founder of Ark Invest, is betting big on companies with high growth potential, like You’re here (TSLA), Coinbase (PIECE OF MONEY), Focus on video communications (ZM), DraftKings (DKNG), Exact Sciences (EXAS) and Shopify (SHOP).
X
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 shares round out Cathie Wood’s 10 largest positions.
DKNG stock is Ark Invest’s best performer in 2023 among its major holdings, up 119.8% as of June 23. TSLA stock follows close behind, up 118%. The stocks of Exact Sciences (87.1%) and SHOP (83.8%) have almost doubled.
ZM stock lagged, down 1.7%. TDOC and Square stocks were little changed.
DraftKings was expected to widen its lead on Monday, with shares rising slightly as Tesla fell solidly.
Year-to-date, the Dow Jones has climbed 1.75%, the S&P 500 index 13.25% and the Nasdaq composite 28.9%.
2023 performance of Ark Invest Top Holdings
| Business | Teleprinter | change 2023 | Against. all-time high |
|---|---|---|---|
| DraftKings | DKNG | 119.8% | -66.3% |
| You’re here | TSLA | 108.3% | -38.1% |
| Exact Sciences | EXA | 87.1% | -41.9% |
| Shopify | SHOP | 83.8% | -63.8% |
| Coinbase | PIECE OF MONEY | 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 its 52-week low at the end of 2022, but then took off, almost doubling until the end of February. After consolidating for a few months, the online sports betting giant has burst again. Since then, DraftKings stock has been volatile, but found support at a rising 21-day moving average.
Tesla stock performance
Tesla stock plunged 65% in 2022, but rallied again in 2023. After a huge run to start the year, TSLA stock consolidated for a few months, but ran fast starting in late April. The shares broke from a new low in early June, part of a record 13-session winning streak.
Winners Cathie Wood Parés
Ark Invest has a price target of $2,000 in Tesla shares in 2027, but Cathie Wood has reduced its large holdings in recent weeks, including a sale of 27,841 Tesla shares on June 23. Wood tends to sell stocks after a strong gain. Additionally, TSLA stock exceeds 10% of the total value of ARK Innovation ETF (ARKK).
Join the experts at IBD as they analyze actionable stocks in the stock market rally on IBD Live
Ark Invest adds to the losers
Ark Invest is also inclined to buy stocks when they are selling, with the aim of loading cheap. Wood’s Ark added COIN shares in early June, as Binance and then Coinbase itself faced charges from the SEC.
Tesla profitable, many Ark stocks are not
Cathie Wood is betting big on companies in cutting-edge fields, from electric vehicles 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 very profitable, although EPS is expected to fall in 2023. UiPath, Square, Shopify are also making money, with Shopify expected to generate massive EPS growth in 2023. DraftKings is not yet profitable, but revenue growth is strong. Exact Sciences and Square-parent Block recorded solid sales growth. Roku and Teladoc have slowing revenue gains while Coinbase’s are down.
Ark ETFs rebound in 2023
Cathie Wood’s flagship ARK Innovation ETF plunged 67% in 2022 but rebounded 34.9% in 2023. ARKK is still 73.6% below its February 2021 peak.
The Ark Genomic Revolution ETF (ARKG) has rebounded 16.2% this year, but is down 71.5% from its all-time high.
Ark Fintech Innovation ETF (ARKF) jumped 40.2% in 2023 after hitting record highs in 2022.
Ark Invest still underwater on the main stocks
Ark is big on Tesla stock. His current position on three ETFs has an average cost of $85.56 to $108.39. Its EXAS equity stake is close to breaking even, with a cost base of $94.56 to $106.19. But it’s down about 50% on DKNG and Shopify stocks, and well over 50% on the other six stocks.
Please follow Ed Carson on Twitter at @IBD_ECarson for stock market updates and more.
YOU MIGHT ALSO LIKE:
Healthy market decline; What to do now
Catch the next big winning stock with MarketSmith
Best Growth Stocks to Buy and Watch
IBD Digital: Unlock IBD’s premium stock listings, tools and analysis today
Tesla vs. BYD: The EV giants are vying for the crown, but what’s the best buy?