10 Worst ARK Stocks To Buy According to Short Sellers

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1. CRISPR Therapeutics AG (NASDAQ:CRSP)

Short Interest as % of  Shares Outstanding: 22.72%

Number of Hedge Fund Investors In Q3 2024: 27

Ark Invest’s Q3 2024 Stake: $352 million

CRISPR Therapeutics AG (NASDAQ:CRSP) is one of the most important firms in the genomic industry. The firm’s CRISPR gene sequencing platform is nearly synonymous with the technology itself. Since CRISPR Therapeutics AG (NASDAQ:CRSP)’s products are used to manufacture medicines that rely on gene sequencing, the firm is dependent on the health of gene-based medicine for its revenue. This dependence is particularly pronounced since CRISPR Therapeutics AG (NASDAQ:CRSP) lacks diversification to pivot away to other sectors. Fortunately for the firm, its partnership with Vertex has led to the first sickle cell gene therapy treatment called CASGEVY. The treatment has also been approved in Canada and Switzerland, and CRISPR Therapeutics AG (NASDAQ:CRSP) is also developing medicines to treat lymphoma and tumors. These are in Phase 1 development, so over the short term, CASGEVY’s market performance and payments to CRISPR Therapeutics AG (NASDAQ:CRSP) will drive the hypothesis.

CRSP is a Cathie Wood stock that short sellers love. While we acknowledge the potential of CRSP as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns and doing so within a shorter timeframe. If you are looking for an AI stock that is more promising than CRSP but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.

READ NEXT: 8 Best Wide Moat Stocks to Buy Now and 30 Most Important AI Stocks According to BlackRock.

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