March 6, 2021 | 5:00 p.m.
Editor’s Note: This article is for informational purposes only and does not represent the CEO’s investment advice.
by Jesse Cohen
The investment company ARK Investment Management, which is now hot in the hams, led by renowned growth investor Cathie Woodhas been in the spotlight recently due to buying madness in its portfolio of active managed exchange traded funds (ETFs).
ARK Invest’s top five ETFs doubled in 2020, with the company’s ARK Genomic Revolution (NYSE 🙂 rising 178% last year.
ARK Next (LON: NXT) Generation Internet ETF (NYSE 🙂 (+ 154%) and flagship ARK Innovation (NYSE 🙂 ETF (+ 148%) were not far behind.
Despite some turmoil recently – ARK suffered the largest net outflow in the company’s seven-year history on February 23 – a group of ETFs appears well positioned to continue their rise thanks to big bets from some of the latest, disruptive and exciting names in the market.
Below, we draw attention to three shares that have been a significant purchase for ARK in recent weeks, considering the size and sustained buying activity of Wood.
All figures are updated as of the publication of the ARK report on 2 March.
1. Teladoc (NYSE 🙂
- ARK Ownership: 7.55%.
- Funds: ARKK, ARKW, ARKF, ARKG.
- Weight: 4.69%.
After a staggering 140% increase in 2020, shares in Teladoc rose another 54% in early 2021, before sales in companies that have increased significantly during the COVID-19 pandemic put a stop to the blowing wind. -Airline.
Shares of Teladoc closed Friday at 189.69, down 38% from their all-time high of $ 308.00 on February 16. Based on current valuations, the market value of pioneering telemedicine in New York in Copenhagen is $ 28.9 billion.
Two ARK exchange traded funds bought almost 200,000 shares in Teladoc on March 1: ARKK bought 111,041 shares and ARKW bought an additional 88,691 shares. The acquisition follows ARK Invest’s acquisition of approximately 1,057 million shares in Teladoc in February.
The largest US telecommunications company is already in the top five assets of ARK, along with Square (NYSE :), Roku in recent days and Tesla (NASDAQ :).
Although the company’s 2021 revenue and membership guidelines have not been attractive to investors, we believe that Teladoc is well positioned to remain a leader in the rapidly growing field of telemedicine services.
2. Unity Software (NYSE 🙂
- ARK Ownership: 2.05%.
- Funds: ARKK, ARKW.
- Weight: 1.15%.
Shares in Unity Software, which offers tools for creating video games, have been in turmoil lately. After a 195% profit in 2020, shares in the company, which went on the market in mid-September, have fallen by almost 40% so far in 2021.
Shares of Unity – which closed at $ 93.82 on Friday – are now 46% below the all-time high of $ 174.94 on December 23, bringing the market value of the video game software maker to about $ 26 billion.
ARK Fund Cathie Wood made a big purchase when US stocks fell in February, buying no less than 13 stocks a month. He added a total of 2.19 million shares to his portfolio, making ARK Innovation’s 2% stake in Unity. It is now the 14th largest holding in the fund.
Shares of Unity Software are still attractive, thanks in large part to the high demand for video game platforms and the creation of digital content.
3. DraftKings (NASDAQ 🙂
- ARK Ownership: 0.51%.
- Funds: ARKW, ARKF.
- Weight: 0.26%.
Shares in DraftKings have been booming for the past 12 months, as shutdown measures aimed at halting the spread of the coronary heart disease epidemic boosted the online sports betting boom.
Shares of the operator of the sports betting website in Boston, Massachusetts have risen by 311% since it was launched through a special acquisition company (SPAC) on April 24, 2020.
DraftKings hit a new all-time high of $ 72.06 on Wednesday, then closed the session at $ 65.75 and ended Friday at $ 59.52, bringing the sports betting platform a valuation of about $ 24.6 billion.
ARK Fintech Innovation ETF (NYSE: ARKF) bought 173,800 shares of DraftKings at the beginning of the new month on Monday. In February, the combined ARK ETFs bought a total of 1,566 million shares in the sports betting company and were in 84th place in ARK, but the company will probably go higher on the list in the coming months.
These positive results led the company to raise its revenue target for 2021 to about 950 million dollars, compared to its previous forecast of 800 million dollars.
After all, the company seems to be in a position to continue to deliver on its top priorities, which include entering new states as soon as possible, investing in products and technology to create new offerings and gaining and retain customers.
This comment first appears in Investing.com
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