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 (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 approaching a cup base's 54.52 buy point. The ARKK ETF fell 1.3% Monday, about 7% away from the latest 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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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 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, Teslaand 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.
Coinbase stock surged 8.8% Monday, further above a 187.39 cup-base buy point.
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 Feb. 26, Zoom reported January-quarter earnings and revenue that topped estimates and announced a $1.5 billion buyback of its own shares. Fiscal 2025 earnings guidance for the company came in above expectations.
On Monday, Zoom stock was down 1.5%. Shares are building a cup base with a 74.77 buy point.
Roku Stock
Roku stock is trading more than 40% off its 52-week high amid sharp losses in recent weeks.Roku shares dropped 3.3% Monday.
On Feb. 15, Roku beat expectations for new users and sales in the fourth quarter. It also guided higher than views for the current quarter.
The San Jose, Calif.-based company added 4.2 million new accounts, ending the period with 80 million active accounts. Analysts had expected 3.05 million new accounts in the fourth quarter.
Roku lost 55 cents a share on sales of $984.4 million in the December quarter. Wall Street had expected Roku to lose 55 cents a share on sales of $968 million. In the year-earlier quarter, Roku lost $1.70 a share on sales of $867 million.
The magnitude of Roku's sales outperformance last quarter was lower than many analysts had hoped for, Evercore ISI analyst Shweta Khajuria said in a note to clients.
Block Stock
Block is a digital payments and cryptocurrency leader. The stock is about 7% off its 52-week high and above its 50-day line.
According toIBD 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 Feb. 22, Block reported fourth-quarter earnings that missed estimates while revenue slightly beat as other financial metrics were mixed. Guidance for the company came in above expectations.
For 2024, Block forecast gross profit of at least $8.65 billion versus consensus at $8.55 billion. Block said it expects adjusted EBITDA of at least $2.65 billion versus consensus at $2.4 billion.
Block stock tumbled 2.3% Monday. Shares are trying to break out past a 80.29 cup-base entry.
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Tesla Stock Is One Of The Biggest Cathie Wood Stocks To Watch
Tesla stock dived 6% Monday, still holding above its lowest level since May 2023.
On Jan. 24, the electric-vehicle giant said that earnings fell 40% to 71 cents per share while revenue totaled $25.17 billion, up 3.5% vs. the year-ago period. Wall Street expected earnings of 73 cents a share on revenue of $25.62 billion. For 2023, Tesla earnings fell 23% to $3.12 a share while revenue increased 19% to $96.77 billion vs. estimates of $3.05 on sales of $97.5 billion.
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