Zoom included in stocks that Catherine Duddy Wood, “American investor and the founder, CEO and CIO of Ark Invest, an investment management firm” thinks will make a comeback.
Ark Invest is “an American investment management firm based in St. Petersburg, Florida, that manages several actively managed exchange-traded funds (ETFs).[3] It was founded by Cathie Wood in 2014.[4][5] As of February 2021, the company had $50 billion in assets under management.[1] By May 2022, assets had dropped to $15.9 billion, after a period of poor performance.”
After falling by 1.6% in Q1, real GDP in the United States shrank at an annual rate of 0.9% in Q2. Numerous experts, including Cathie Wood of Ark Invest, are calling for a recession even though politicians won’t use the “R” word. She decided for the release of the official data.
Wood announced in a recent CNBC interview that she thinks they are in a recession. She added that she believes a big problem out there is inventories, the increase of which she has never seen this significant in her career. She ended by adding that she had been around for 45 years.
The market performance suggests that sentiment is unquestionably pessimistic. The S&P 500 has fallen 14% so far this year. During the same period, the Ark Innovation ETF (NYSEARCA:ARKK), Wood’s flagship fund, fell by 49%. Investors, however, are persistent. According to Fact Set statistics, ARKK (NYSEARCA:ARKK) received over $180 million in inflows in June, as reported by CNBC.
Wood said she thinks the inflows are happening because her clients have been diversifying away from broad-based benchmarks like the Nasdaq 100. She added that they are entirely dedicated to disruptive innovation, and innovation solves problems.
Here is a look at the top three holdings at ARKK (NYSEARCA:ARKK) for individuals who share Wood’s perspective.
Tesla
For years, growth investors have consistently turned to Tesla. Given how much the stock has fallen recently, it is now a name contrarian investors should consider. The stock has dropped by 27% since its closing high of $1,229.91 on Nov. 4. But things are still going well for the business. The overall number of Model S, Model X, Model 3, and Model Y deliveries in Q2 increased by 27% year over year to 254,695 vehicles. Robotaxi, according to Ark Invest, will revolutionize the gaming industry for the company.
Zoom Video Communications
Zoom’s revenue grew due to the pandemic’s online shift of meetings and classes. However, there have been worries regarding the growth potential of this video communications company when the economy recovered, and workers returned to the workplace. Zoom (NASDAQ:ZM) stock has decreased 41% year to date. Wood, though, still believes that the stock has potential. In reality, Zoom (NASDAQ: ZM) makes up 8.5 % of ARKK’s weight and is the fund’s second-largest investment at the moment. According to a research report published by Ark Invest in June, Zoom (NASDAQ:ZM) shares may soon have a dazzling comeback.
Roku
On-demand video streaming, a secular trend, has benefited several internet companies. One of them is Roku (NASDAQ:ROKU). The stock’s return since going public in September 2017 has exceeded 200%. Users of the company’s platform can access streaming services, including Disney+, Netflix, and YouTube. Roku (NASDAQ:ROKU) also provides its own ad-supported channels with content from partnered third parties. The corporation increased the number of active accounts by 1.8 million in the second quarter, bringing the total to 63.1 million. The amount of revenue increased by 18% to $764 million. Even though Roku’s revenue is expanding, investors have been quickly leaving the company. The stock has dropped by an astounding 80% in the last 12 months.
Featured Image: Megapixl © Boumenjapet
