Cathie Wood's ARK Invest ETFs are some of the hottest funds after 2020's huge stock market gains. Six ARK Invest stocks to buy and watch are Coinbase, DraftKings, Sea Limited, Square, Teladoc Health and Tesla.
ARK ETFs
TheARK Investinvestment company's flagship fund is ARK Innovation ETF (ARKK). TheARKK ETFfocuses on companies that exhibit "disruptive innovation," a technologically enabled new product or service that potentially changes the way the world works.
The ARK Innovation ETFsurged more than 152%in 2020, handily beating the Nasdaq's hefty 43.6% return.
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).
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 areas: 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.
ARK Invest Stocks To Buy And Watch
Amid the current stock market uptrend — according toIBD's market outlook— investors should focus on buying top stocks breaking out past correct buy points.
ARK Invest stocks to buy and watch, and their tickers, includeCoinbase Global(COIN)DraftKings(DKNG),Sea Limited(SE),Square(SQ),Tesla(TSLA) andTeladoc Health(TDOC).
| Company Name | Symbol | Closing Price | Weight In ARKK |
|---|---|---|---|
| Tesla | (TSLA) | 738.85 | 11.7% |
| Square | (SQ) | 263.08 | 7.0% |
| Teladoc Health | (TDOC) | 192.38 | 6.1% |
| Sea Limited | (SE) | 250.10 | 1.6% |
| Coinbase Global | (COIN) | 322.75 | 1.0% |
| DraftKings | (DKNG) | 57.48 | 0.8% |
Coinbase IPO
Cryptocurrency exchange Coinbase debuted on April 14, pricing at $250 a share. Coinbase stock closed its first day of trading 328.28, up 31.3%, for a valuation of $87.3 billion. Investors should wait for an IPO base to form before jumping into the hot IPO stock.
The new stake in Coinbase represents another one of the Ark Invest stocks that offers more exposure to cryptocurrencies.
COIN stock fell 0.2% Monday.
Bitcoin traded around $57,900 Monday morning. On April 14, Bitcoin topped out at $64,829, according to Coindesk.
DraftKings Stock
DraftKings is an online sports platform that allows users to play daily fantasy games and win cash prizes. The company is poised to take advantage of the expanding legalization of digital sports betting across the U.S.
DraftKings stock is below its 50-day moving average. It could form a base once the stock can recover from its downtrend. There is no buy point at this time, but a decisive retake of the 50-day line would be bullish for the stock's prospects.
The sports-betting leader is one of the newest ARK Invest stocks. On March 8, ARK Invest disclosed a new position of 748,000 shares for the ARKK ETF.
DKNG stock declined 5% Monday.
Sea Limited Stock
Sea says it has both the largest digital entertainment platform and the largest e-commerce operation in the Southeast Asia region, comprised of Indonesia, Taiwan, Vietnam, Thailand, the Philippines, Malaysia and Singapore. Its market reach extends to Latin America.
Sea Limited stock is shaping a cup with handle, which offers a 278.10 buy point. SE stock fell over 6% Monday and is trying to find support around the 50-day line.
On April 20, shares triggered the 7%-8% loss-cutting sell rule after briefly topping a 258.70 entry.
This Cathie Wood Stock Pick Nears A New Buy Point
Square is a digital payments and cryptocurrency leader. Recently, Square disclosed a new $170 million investment in Bitcoin on top of its $50 million purchase in October. Bitcoin represents 5% of total company assets.
Square stock shows a 278.23 buy point in a cup with handle. Shares are about 13% away from the buy point. Despite soaring more than 700% from the coronavirus bear market lows, SQ stock's base is still early stage.
According to IBD Stock Checkup, Square stock shows a 92 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.
Square stock declined over 3% Monday, and is trying to regain its key 50-day line.
Why Tesla Is One Of The Top ARK Invest Stocks
Tesla stock is one of the top ARK Invest stocks, with whopping 11% weighting in the ARKK ETF portfolio. In mid-January, ARK Invest unveiled its 2025 price target on Tesla stock of 3,000 a share.
On April 13, Tesla stock surged over 8% to decisively reclaim its 50-day moving average, but is now back below that key level. Shares are building the right side of a new cup with handle, offering a 780.89 buy point. But it is a late-stage base.
Shares skidded more than 3% Monday. The stock is still below its key 50-day line.
Teladoc Health Stock
Teladoc Health provides on-demand health care services, such as nonemergency doctor's appointments, online. More doctors and patients are opting for telemedicine due to Covid-19. Teladoc is one of the biggest ARK Invest stocks, with an over-6% portfolio weighting in the ARKK portfolio.
TDOC stock is trading about 50% off its 52-week high and is far below its 10-week moving average. Shares traded down almost 4% Monday.