An explosive performance investment firm ARK Investment Management, led by renowned growth investor Cathie Wood, has attracted great attention lately, with a buying frenzy for actively managed ETFs.
While there has been some turbulence recently — ARK experienced the biggest net capital outflow in the company’s seven-year history on February 23 — the ETF group seems in a good position to continue its rise, with big bets on some of the most innovative, destabilizing and exciting names in the market. .
Below, we look at three stocks that ARK has bought in significant volumes in recent weeks considering the size and frequency of Wood’s buying activity.
All figures are current as of ARK’s notification on March 2.
- Share of ARK: 7.55%
- Funds: ARKK, ARKW, ARKF, ARKG
- Weight: 4.69%
TDOC stock closed Tuesday at $ 217.92, about 30% below its historic high of $ 308.00 on February 16. In current valuations, Purchase, the New York-based telehealth pioneer, has a market value of $ 32.5 billion.
Two ARK exchange traded funds bought a total of approximately 200,000 Teladoc shares on March 1: ARKK purchased 111,041 shares, and ARKW purchased an additional 88,691 shares. Prior to these acquisitions, ARK Invest had acquired approximately 1.057 million TDOC shares in February.
Using telephony and video-conferencing software to provide remote demand-based medical assistance, the company recorded a total of 2.96 million visits in the fourth quarter, up 139% compared to the same period last year.
Visits related to noncommunicable diseases such as back pain, blood pressure, anxiety and depression accounted for 75% of the total visit volume. This rate was 50% in the last quarter of last year.
While the company’s 2021 revenue and subscription routing has failed to impress investors, we believe Teladoc is well positioned to maintain its leadership in the rapidly growing tele-health services space.
2. Unity Software
- Share of ARK: 2.05%
- Funds: ARKK, ARKW
- Weight: 1.15%
The U share, which closed at $ 108.10 last night, is currently trading about 38% below its historic high of $ 174.94 on December 23, giving the game software developer a market value of $ 28.4 billion.
Cathie Wood’s ARK fund went on a shopping spree in February, when U shares fell, and bought 13 times during the month. Wood added 2.19 million U shares to its portfolio in total, increasing ARK Innovation’s stake in Unity to approximately 2%. The company is currently the 24th largest asset of the fund.
The San Francisco, California-based company recorded an adjusted loss of $ 0.10 per share in the last three months of 2020. Revenue grew 39% year over year to $ 220.3 million, reflecting the increase in demand for the platform.
Unity expects revenue of approximately $ 960 million for the full year 2021, which means that growth will slow significantly to 24% after a sales growth of 43% in 2020.
Unity Software’s stock is still an attractive option, thanks to strong demand for the company’s game and digital content creation platform.
- Share of ARK: 0.51%
- Funds: ARKW, ARKF
- Weight: 0.26%
Based in Boston, Massachusetts, the company’s stock has gained a full 311% since it went public through a special purpose purchasing company (SPAC) on April 24.
DKNG reached a new record high of $ 70.03 yesterday and then closed the session at $ 68.58, giving the company a market value of about $ 25.2 billion.
The company was able to surpass the consensus estimates of $ 233.2 million, announcing that revenue increased 146% to $ 322 million compared to the same period last year.
The number of private customers with monthly average payments jumped 44% year on year to 1.5 million, and average revenue per private customer with monthly payments increased by 55% to $ 65.
With these strong results, the company increased its 2021 revenue target from its previous estimate of $ 800 million to about $ 950 million.
Overall, the company seems ready to continue to successfully fulfill its top priorities, such as entering new states at the earliest opportunity, investing in products and technologies to create new offerings, and gaining and retaining new customers.