ARK Invest Stocks To Buy And Watch: 6 Stocks That Cathie Wood’s ARK ETFs Own; Tesla Slides Despite Earnings Beat
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, Sea Limited, Square, Teladoc Health and Tesla.
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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).
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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), Sea Limited (SE), Square (SQ), Tesla (TSLA) and Teladoc Health (TDOC).
| Company Name | Symbol | Closing Price | Weight In ARKK |
|---|---|---|---|
| Tesla | (TSLA) | 738.85 | 11.7% |
| Square | (SQ) | 263.08 | 7.0% |
| Teladoc Health | (TDOC) | 192.38 | 6.1% |
| Sea Limited | (SE) | 250.10 | 1.6% |
| Coinbase Global | (COIN) | 322.75 | 1.0% |
| DraftKings | (DKNG) | 57.48 | 0.8% |
Source: ARK funds data as of April 15, 2021
Coinbase IPO Rallies On Bitcoin Recovery
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.
COIN stock jumped over 4% Monday after tumbling to new lows Friday.
Bitcoin briefly plunged as low as $47,079 Sunday night before surging higher to trade around $54,000 Monday afternoon. On April 14, Bitcoin topped out at $64,829, according to Coindesk. Meanwhile, Ethereum soared over 10% to trade around $2,527 Monday morning. The cryptocurrency hit an all-time high on April 15 at $2,645.
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. 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.
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 rose 2% Monday.
Sea Limited Stock
Sea says it has both the largest digital entertainment platform and the largest e-commerce operation in the Southeast Asia region, comprised of Indonesia, Taiwan, Vietnam, Thailand, the Philippines, Malaysia and Singapore. Its market reach extends to Latin America.
Sea Limited stock is shaping a cup with handle, which offers a 258.70 buy point. SE stock rose about 5% Monday and is back above the entry.
On April 20, shares triggered the 7%-8% loss-cutting sell rule after briefly topping the 258.70 entry.
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 nearing a 278.23 buy point in a cup with handle and is trying to find support around its 50-day line. Shares are about 13% 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 boasts 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 up almost 4% Monday.
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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. Shares are building the right side of a new cup with handle, offering a 780.89 buy point. But it is a late-stage base.
TSLA stock rallied more than 1% Monday, and remains above its 50-day line.
Tesla earnings beat analyst estimates late Monday. The company reported an adjusted 93 cents per share on revenue of $10.39 billion. Analysts polled by Zacks Investment Research expect EPS of 79 cents, a 216% year-over-year surge. Sales are seen jumping 66% to $9.92 billion.
Shares were slightly down more than 2% in overnight trade in the wake of Tesla earnings.
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 40% off its 52-week high and is far below its 10-week moving average. Shares rose about 4% Monday.
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