Cathie Wood’s Investment Watch: Assessing Market Developments

Cathie Wood’s ARK Invest ETFs, which gained significant attention after the substantial market growth in 2020, experienced a rebound in 2023 after facing substantial losses in 2021 and 2022. In 2024, investors are closely watching five Cathie Wood stocks: Coinbase (COIN), Roku (ROKU), Block (SQ), Tesla (TSLA), and Zoom Video Communications (ZM).

Assessing ARKK’s Current Status

The flagship fund of ARK Invest, ARK Innovation ETF (ARKK), is a focal point for investors. After an impressive 152% surge in 2020, outperforming the Nasdaq’s 43.6% return, ARKK faced challenges in 2021 and 2022, with a 67% decline in 2022. However, the fund made a strong comeback in 2023, posting a 67.6% gain. As ARKK approaches recent highs, its breakout attempt from a cup base’s 51.33 buy point faced setbacks with sharp losses in recent trading days.

ARK Invest offers a range of ETFs beyond ARKK, each targeting specific sectors such as Autonomous Technology & Robotics (ARKQ), Next Generation Internet (ARKW), Genomic Revolution (ARKG), Fintech Innovation (ARKF), and the recently introduced Space Exploration and Innovation (ARKX). Cathie Wood’s investment philosophy centers on identifying disruptive innovation, emphasizing the potential of revolutionary technologies like DNA sequencing, robotics, artificial intelligence, energy storage, and blockchain.

• Coinbase (COIN): The cryptocurrency exchange, which debuted in April 2021, recently surpassed a buy point of 114.43 in a cup base. Despite a 1.1% dip on Thursday, Coinbase offers exposure to the cryptocurrency market.
• Zoom Video (ZM): As a leader in modern enterprise video communications, Zoom Video reported strong fiscal third-quarter results. Although down 1.5% on Thursday, the company continues to be a key player in remote communication technologies.
• Roku (ROKU): Roku, a provider of streaming services, exceeded expectations in the third quarter, gaining 2.3 million new accounts. However, trading around 20% below its 52-week high, Roku faces recent losses.
• Block (SQ): A digital payments and cryptocurrency leader, Block, is approximately 27% off its 52-week high. With an 85 IBD Composite Rating, Block reported impressive third-quarter earnings and revenue.
• Tesla (TSLA): Tesla, a major player in the electric vehicle industry, saw its stock decline by 2%. Despite this, Tesla exceeded delivery predictions in Q4 and achieved full-year expectations.

As investors continue to evaluate these stocks, Cathie Wood’s choices reflect a focus on innovative technologies and market disruptors.