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 stocks to buy and watch in 2023 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 37.4% through Aug. 14.
With the ARKK ETF about 20% off its 52-week high, the ETF is not a buy right now. Currently, the ETF is forming a cup with handle. But wait for the ETF to halt its current downtrend, and then break out past a correct buy point to indicate the proper time to buy. The ARKK ETF dropped 0.7% Tuesday.
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 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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Cathie Wood 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) | 239.76 | 10.35% |
| Roku | (ROKU) | 82.26 | 8.58% |
| Coinbase | (COIN) | 80.81 | 7.77% |
| Zoom Video | (ZM) | 67.55 | 7.24% |
| Block | (SQ) | 60.15 | 5.72% |
| UiPath | (PATH) | 15.45 | 5.65% |
Source: ARK funds data as of Aug. 14, 2023
Coinbase Stock
Cryptocurrency exchange Coinbase debuted on April 14, 2021 pricing at $250 per share.
On July 11, Coinbase shares jumped above a 87.63 buy point. But the stock triggered the 7% loss rule after sharp losses in recent week. COIN stock declined 1.8% Tuesday.
Coinbase represents another one of the Cathie Wood 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 May 22, Zoom reported that its April-quarter earnings handily beat estimates but weakening trends in its enterprise business spooked ZM stock investors.
Zoom earnings for the company’s first quarter rose 13% to $1.16 per adjusted per share amid cost-cutting moves. Also, revenue climbed 3% to $1.105 billion. A year earlier, Zoom earned $1.03 a share on sales of $1.074 billion.
On Tuesday, Zoom stock was down 1.8%. Shares are about 42% off their 52-week high.
Roku Stock
Roku stock is trading around 15% off its 52-week high amid sharp gains in recent months.
On July 27, Roku smashed analyst estimates for revenue and new users in the second quarter.
ROKU shares climbed 1.2% Tuesday.
Block Stock
Block is a digital payments and cryptocurrency leader. The stock is about 34% off its 52-week high and below the long-term 200-day moving average.
According to IBD Stock Checkup, Block stock shows a 61 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 Aug. 4, Square-parent Block reported second-quarter earnings and revenue that topped estimates. Business trends for SQ stock and its outlook heading into the second half of 2023 pressured Square.
Square earnings for the period ended June 30 were 39 cents per share on an adjusted basis, up 116% from the year-earlier period. Analysts had projected earnings of 36 cents a share.
Block stock moved down 2.9% Tuesday.
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Tesla Stock Is One Of The Biggest Cathie Wood Stocks To Watch
IBD Leaderboard stock Tesla skidded another 1.2% Monday, closing further below its 50-day line. Amid the continued selling, it’s clear that the stock requires more time to consolidate before a new entry.
TSLA stock threatened to add to Monday’s losses, skidding 3% Tuesday.
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Source: https://www.investors.com/research/best-cathie-wood-stocks-to-watch-coinbase-block-roku-zoom-video-tesla-falls/?src=A00220&yptr=yahoo