Fri. Jan 21st, 2022


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.




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ARK ETFs

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).

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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.


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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.

ARK Invest stocks to buy and watch, and their tickers, include Coinbase Global (COIN), DraftKings (DKNG), Roku (ROKU), Block (SQ), Tesla (TSLA), Teladoc Health (TDOC) and Zoom Video (ZM).

Company Name Symbol Closing Price Weight In ARKK
Tesla (TSLA) 1,008.87 7.75%
Roku (ROKU) 226.70 6.0%
Teladoc (TDOC) 94.38 5.85%
Zoom Video (ZM) 193.13 5.7%
Coinbase Global (COIN) 254.55 4.9%
DraftKings (DKNG) 29.57 2.1%
Source: ARK funds data as of Dec. 22, 2021

Coinbase IPO

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 dropped 3% Thursday.

DraftKings Stock

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 65% off their 52-week high.

DKNG stock fell more than 7% Thursday.

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 Thursday, Zoom stock slid nearly 5%. Shares are about 60% off their 52-week high.

Roku Stock

Roku stock is trading more than 60% 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 fell 5.35% Thursday.

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Block is a digital payments and cryptocurrency leader. Block stock is over 50% off its 52-week high and sharply below its 50-day and 200-day moving averages.

According to IBD Stock CheckupBlock stock shows a 54 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 down 6.3% Thursday.


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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, ARK Invest unveiled its 2025 price target on Tesla stock of $3,000 a share.

Tesla stock dived more than 7% Thursday. Last week, 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.

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 70% off its 52-week high. Shares dropped 4% Thursday.

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