Cathie Wood’s ARK Invest ETFs were some of the hottest funds after 2020’s huge stock market gains and rebounded in 2023 after big losses in 2021 and 2022. Five Cathie Wood stocks to buy and watch in 2024 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 rebounded in 2023, up 67.6%.
With the ARKK ETF near its recent highs, the ETF is trying to break out past a buy point in a cup base at 51.33. The ARKK ETF fell 2.5% Tuesday, falling below the entry.
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) | 238.72 | 7.51% |
| Roku | (ROKU) | 105.19 | 8.69% |
| Coinbase | (COIN) | 140.20 | 11.64% |
| Zoom Video | (ZM) | 68.72 | 6.78% |
| Block | (SQ) | 64.89 | 5.95% |
| UiPath | (PATH) | 24.67 | 8.04% |
Source: ARK funds data as of Dec. 6, 2023
Coinbase Stock
Cryptocurrency exchange Coinbase debuted on April 14, 2021 pricing at $250 per share.
On Nov. 24, Coinbase shares jumped above a 114.43 buy point in a cup base. Shares are extended past the 5% buy area.
COIN stock dived 6.9% Tuesday, falling further from last week’s 52-week high.
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 Nov. 20, Zoom beat expectations for its fiscal third quarter, but offered mixed guidance for the current period.
The San Jose, Calif.-based company earned an adjusted $1.29 a share on sales of $1.14 billion in the quarter ended Oct. 31. Analysts polled by FactSet had expected Zoom earnings of $1.09 a share on sales of $1.12 billion. On a year-over-year basis, Zoom earnings rose 21% while sales increased just 3%.
On Tuesday, Zoom stock was down 2.9%. Shares are trying to break out past a 73.96 buy point in a cup-with-handle base.
Roku Stock
Roku stock is trading around 18% off its 52-week high amid sharp losses in recent weeks.
On Nov. 1, Roku added more new users than expected in the third quarter, which drove a top-line beat.
The San Jose, Calif.-based company added 2.3 million new accounts, ending the period with 75.8 million active accounts. Analysts had expected 1.8 million new accounts in the third quarter. Roku’s sales rose 20% year over year to $912 million, topping the consensus estimate of $857 million.
ROKU shares fell 2.8% Tuesday. In recent weeks, the stock triggered the 7% loss rule below the 98.44 buy point in a consolidation. Meanwhile, the stock is setting up for a test of its key 50-day moving average.
Block Stock
Block is a digital payments and cryptocurrency leader. The stock is about 19% off its 52-week high, but back above its 50- and 200-day moving averages.
According to IBD Stock Checkup, Block stock shows an 85 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 Nov. 3, Square-parent Block reported third-quarter earnings and revenue that topped estimates. SQ stock jumped on preliminary 2024 guidance for earnings before interest, taxes, depreciation and amortization, a key metric known as EBITDA.
Block stock declined 5.4% Tuesday, still building the right side of a cup base that has an 81.47 buy point.
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Tesla Stock Is One Of The Biggest Cathie Wood Stocks To Watch
Tesla stock skidded another 1.9% Friday, closing below an early entry at 252.75. The stock’s big double-bottom pattern has a 278.98 buy point.
On Tuesday, TSLA stock rose 0.1% after Tesla deliveries in the fourth quarter exceeded Wall Street predictions, as the global EV giant sold a record-setting number of vehicles in Q4 and hit full-year expectations, according to data released by Tesla.
Elon Musk’s Tesla reported that it produced 494,989 units and delivered 484,507 vehicles during the fourth quarter. For the full year, vehicle deliveries grew 38% to 1.81 million while production increased 35% to 1.85 million units.
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