ARK Invest Stocks To Buy And Watch: 6 Stocks That Cathie Wood’s ARK ETFs Own; Tesla Skids On Recall

Cathie Wood’s ARK Invest ETFs are some of the hottest funds after 2020’s huge stock market gains. Six ARK Invest stocks to buy and watch are Coinbase, DraftKings, Square, 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.

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).

How To Invest Like Cathie Wood: Focus On Game Changers

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), Square (SQ), Tesla (TSLA), Teladoc Health (TDOC) and Zoom Video (ZM).

Source: ARK funds data as of June 1, 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. Investors should wait for an IPO base to form before jumping into the hot IPO stock.

The new stake in Coinbase represents another one of the Ark Invest stocks that offers more exposure to cryptocurrencies.

Coinbase rallied 0.1% Wednesday.

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 is below its 50-day moving average and long-term 200-day line. It could form a base once the stock can recover from its downtrend. There is no buy point at this time, but a decisive retake of the 50-day line would be bullish for the stock’s prospects. Shares are about 22% below that moving average.

The sports-betting leader is one of the newest ARK Invest stocks. On March 8, ARK Invest disclosed a new position of 748,000 shares for the ARKK ETF.

DKNG stock moved up 1.5% Wednesday.

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.

After soaring nearly 400% in 2020, Zoom Video stock is down about 2% year to date through Friday’s close. Shares of Zoom stock are about 45% off their 52-week high.

Late Tuesday, Zoom reported adjusted EPS of $1.32 on sales of $956.2 million, beating estimates.

Shares reversed 0.7% lower Wednesday.

This Cathie Wood Stock Pick Nears A New Buy Point

Square is a digital payments and cryptocurrency leader. Recently, Square disclosed a new $170 million investment in Bitcoin on top of its $50 million purchase in October. Bitcoin represents 5% of total company assets.

Square stock is forming a consolidation with a 283.29 buy point. Shares are about 28% away from the buy point. Despite soaring more than 700% from the coronavirus bear market lows, SQ stock’s base is still early stage.

According to IBD Stock Checkup, Square stock shows a 91 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.

Square stock moved down 0.5% Wednesday, and is still below the 50-day line.

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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 11% weighting in the ARKK ETF portfolio. In mid-January, ARK Invest unveiled its 2025 price target on Tesla stock of $3,000 a share.

On April 13, Tesla stock surged over 8% to decisively reclaim its 50-day moving average, but is now back below that key level.

Tesla stock dropped almost 4% Wednesday morning, threatening to extend a losing streak to three sessions. Tesla will recall close to 6,000 Model 3 and Model Y cars in the US because brake caliper bolts could be loose and could reduce tire pressure, Reuters reported, citing a filing with the National Highway Traffic Safety Administration.

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 an over-6% portfolio weighting in the ARKK portfolio.

TDOC stock is trading about 50% off its 52-week high and is far below its 10-week moving average. Shares traded up 0.1% Wednesday.

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