Cathie Wood, CEO and founder of Ark Invest, says she invests over a five-year period, betting big on speculative growth names like Tesla (TSLA), Roku (ROKU), Zoom video communication (ZM), exact science (EXAS) and Shopify (SHOP). But by 2022 at least, Ark’s 10 biggest stocks have tumbled.
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Exact Science was the largest holding across Ark Invest’s various ETFs at the end of 2022, followed by Zoom Video Communications, UiPath (ROAD), Square-parent Block (SQ) and Tesla. Roku, Shopify, Teladoc health (TDOC), Twilio (Twilio) and Beam therapy (BEAM) rounded up Cathie Wood’s 10 largest stock positions.
| Company | share | change in 2022 | With. the highest of all time |
|---|---|---|---|
| exact science | EXAS | -36.4% | -69.0% |
| Zoom | ZM | -63.2% | -88.5% |
| UiPath | ROAD | -70.5% | -85.9% |
| Block | SQ | -61.1% | -78.3% |
| Tesla | TSLA | -65.0% | -70.3% |
| Roku | ROKU | -82.2% | -91.7% |
| Shopify | SHOP | -74.8% | -80.3% |
| Teladoc health | TDOC | -74.2% | -92.3% |
| Twilio | TWLO | -81.4% | -89.3% |
| Beam therapy | BEAM | -50.9% | -71.8% |
EXAS stock is the best performer in 2022 of these big Ark stocks, and it’s still down 36.4%. Roku stock is a laggard, down 82% in 2022. Tesla stock is down 65%, just above the average drop of 66%.
The Dow Jones is down 8.8% in 2022, the S&P 500 is down 19.4% and the Nasdaq is down 33.1%. It was their worst annual performance since 2008.
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Teladoc leads Ark rejection from all-time high
All of Ark Invest’s top 10 stocks are down even more than their record highs set in 2020 or 2021. Roku stock is down 92% from its February 2021 peak. Exact Science down 69% from all-time in January 2021. Tesla stock is 70% below its November 2021 peak.
On average, these Ark Invest top 10 holdings are down nearly 82% from their all-time high.
Cathie Wood adds to the losers
Cathie Wood and Ark Invest didn’t buy all of these stocks at the right time. She likes to buy when weak and sell when strong.
She has significantly reduced her Tesla stake in Ark Invest nearing a record high, although she has bought a decent amount of stock in recent weeks as the EV giant plunges.
Tesla stock remains the only winner of Cathie Wood’s top 10.
Over the past year, Wood has bought more shares of Roku, UiPath, and several other stocks over the past year following major sell-offs.
In 2020 and into 2021, news of Cathie Wood taking a new or larger position in a stock will make a big move the next day. But not anymore.
Cathie Wood’s 10 largest holdings account for nearly 45% of Ark Invest’s total holdings, with Exact Science over 7%. ZM stock is close to 6%, while Tesla is close to 5%. Ark owns only 0.13% of large-cap Tesla stock, but owns nearly 12% of BEAM stock and 11% of TDOC stock. Wood also owns about 9% of Roku and UiPath.
Tesla Profits, But Many Ark Investment Stocks Lose
Tesla’s earnings are high and still growing fast, but it’s an outlier among Cathie Wood’s large stakes in Ark Invest. Zoom Video and Square are profitable, although earnings are falling sharply in 2022. Shopify and UiPath are seen reporting low profit or loss.
Roku, Exact Science, Teladoc and Beam Therapeutics are expected to post big losses in 2022 and 2023.
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Ark ETF plunges
Cathie Wood’s flagship ARK Innovation ETF (ARKK) has fallen 67% in 2022 and 80.4% from its February 2021 peak. On December 28, ARKK hit a 5-year low. The Ark Genome Revolution ETF (ARKG) is just above June’s two-year low while the Ark Fintech Innovation ETF (ARKF) has hit a record low.
Some of these top 10 Ark stocks could bounce back, recover their big losses, and continue to hit much higher highs. But many people may not. These companies are active in cutting-edge fields, from electric vehicles to automation to telemedicine and gene editing. But that doesn’t necessarily mean that these particular companies and stocks will take the lead, even for a period of time in the style of Cathie Wood.
Please follow Ed Carson on Twitter at @IBD_ECarson for stock market updates and more.
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