In this piece, we will look at the ten worst ARK stocks to buy according to short sellers.
Cathie Wood of ARK Investment is one of Wall Street’s most well-known hedge fund bosses. In a hedge fund industry dominated by players that focus on quantitative trading, value stocks, and balanced portfolios, Wood stands out from the pack by focusing on disruptive innovation and firms that she and her firm believe will change the world.
This relentless focus on change means that if the economy is facing turbulence, then markets are not kind to Wood. To understand how: consider the cumulative value of her firm’s holdings as indicated by its 13F SEC filings. Starting from Q3 2020, analyzing the value for each subsequent year’s third quarter reveals how Ark Invest’s fortune fluctuates with economic winds. The hedge fund’s holdings were valued at $16.8 billion, $41.6 billion, $14.3 billion, and $13 billion during Q3 2020, Q3 2021, Q3 2022, and Q3 2023, respectively.
This shows that the value of Ark Invest’s holdings jumped by 148% between the third quarters of 2020 and 2021. Looking back to see why, market conditions back then were marked by easy liquidity, a surge in retail investing, and Wall Street’s bullishness for technology stocks. Technology and growth stocks are precisely the kinds that Wood invests in, and in the time period being analyzed, the shares of Elon Musk’s car company alone soared by 87%. Wood is one of the firm’s largest investors, and her patience has yielded results. Insider Monkey’s data shows that Ark Invest first bought the shares at an average price of $13.14 during Q4 2016. While it has grown its holdings from the 274,725 shares held back then to 4.6 million shares as of Q3 2024, even if Wood hadn’t bought additional shares, her original holdings would currently be worth $62.7 million right now for a remarkable 1,508% gain!
Yet, while Musk’s company is Wood’s greatest hit, there have been misses as well since the idea of investing in disruptive innovation carries the unavoidable pitfall of targeting some firms that fail to deliver on lofty ideas. We analyzed the share price performance of some of her longest-held stocks as part of our coverage of 10 Best Stocks to Buy and Hold For 5 Years According to Cathie Wood. At the time the list was published, its three worst-performing stocks were down by 81.85%, 95.11%, and 99% since 2020 end. Extrapolating their performance to December 2024, the first two stocks, which rank 2nd and 4th have lost 75% and 94.5%.
At the heart of Ark Invest’s trading strategy is the fund’s flagship ARK Innovation ETF fund. Over the past five years, this fund has gained a modest 23% which is substantially lower than the flagship S&P index’s 93.5%. Zooming into its 2024 performance, this fund has gained 20.5% while the index is up by 28.3%.
Wood’s ETF’s performance can also be divided into pre and post-election gains. Before the election, it was down 7.6% year-to-date after having bled 13% during H1 2024. As H1 ended, Wood acknowledged the troubling time her firm was facing in an investor letter. She admitted “fully that the macro environment and some stock picks have challenged our recent performance” but went on to add that her firm’s “conviction in and commitment to investing in disruptive innovation have not wavered.” According to Wood, Ark had to remain persistent back then since exiting our strategies now would crystallize losses that lower interest rates and reversions to the mean should transform into meaningful profits during the next few years.”
The mean reversion she is referring to is the differential in the performance between the Russel Value and Growth stock indexes in the infamous dot-com bubble. Wood pointed out that “At its worst in 2000, the Russell Value Index underperformed the Russell Growth Index by more ~3,500 basis points on a year-over-year basis but, within roughly one year, the relative performance flipped and reached a positive ~4,800 basis points, more than an 80-percentage point swing, as shown below.” She believes that Ark’s strategy to diversify away from the Magnificent 6 (Magnificent 7 ex Tesla) through “increased exposure to multiomics stocks that have been hit hardest by “higher for longer” interest rates” led to disappointing performance.
The potential upside from this diversification was evident in 2023 as the flagship fund “appreciated 68% as the bull market started to broaden out based on just the “whiff” of lower interest rates, despite its diversification away from the Magnificent Six and toward what we believe are more disruptive names,” according to Wood. To wit, while the flagship fund was down 7.6% YTD before the election after the ballots were cast and counted, it has gained 26% to bring its YTD performance to 20.46%. The benchmark S&P index, on the other hand, is up by 28.3%.
Cathie Wood of ARK Investment Management
Our Methodology
For our list of the worst Ark stocks to buy according to short sellers, we ranked the 110 largest holdings in Ark Invest’s Q3 2024 SEC filings by the percentage of shares outstanding that were sold short and selected the stocks with the highest percentage.
For these stocks, we also mentioned the number of hedge fund investors. Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 275% since May 2014, beating its benchmark by 150 percentage points (see more details here).
10. Nurix Therapeutics, Inc. (NASDAQ:NRIX)
Short Interest as % of Shares Outstanding: 13.56%
Number of Hedge Fund Investors In Q3 2024: 32
Ark Invest’s Q3 2024 Stake: $49.8 million
Nurix Therapeutics, Inc. (NASDAQ:NRIX) is a small biotechnology company headquartered in San Francisco, California. The firm is developing treatments for cancer, arthritis, and other inflammatory disease. Since it does not earn any revenue from selling medicines, Nurix Therapeutics, Inc. (NASDAQ:NRIX)’s hypothesis is based on its under-development drugs. Among these, the NX-5948 drug aimed to treat leukemia. Consequently, the success of this drug is key to Nurix Therapeutics, Inc. (NASDAQ:NRIX)’s share price movement. NX-5948 is currently in Phase 1a/1b trials, and with data expected in December, the drug should set the tone for the firm’s future. Other Nurix Therapeutics, Inc. (NASDAQ:NRIX) drugs include its NX-1607 treatment for lymphoma and NX-0479 for arthritis.
9. SoFi Technologies, Inc. (NASDAQ:SOFI)
Short Interest as % of Shares Outstanding: 13.70%
Number of Hedge Fund Investors In Q3 2024: 31
Ark Invest’s Q3 2024 Stake: $99.1 million
SoFi Technologies, Inc. (NASDAQ:SOFI) is a sizable financial services provider based in San Francisco, California. It provides lending services, financial technology products, and benefits management products among others. The firm depends heavily on interest income to fund its operations. As of H1 2024, SoFi Technologies, Inc. (NASDAQ:SOFI) earned $1.3 billion in interest income and $428 million in noninterest income. Consequently, a lower interest rate environment could play out in its favor as services such as loan refinancing, mortgages, and personal loans see greater demand from consumers. The bulk of SoFi Technologies, Inc. (NASDAQ:SOFI)’s interest income is from loans, and the firm’s noninterest income comes from various areas such as its technology platforms. In H1, income from technology platforms grew by 11% to somewhat mitigate the effects of a 48% drop in loan origination income due to high interest rates.
SoFi Technologies, Inc. (NASDAQ:SOFI)’s management commented on its outlook of a relaxed regulatory environment during the Q3 2024 earnings call. Here is what they said:
“It should now be crystal clear that SoFi can drive sustained growth across the cycle. We’ve achieved 17 of 19 quarters of record revenue through a recession, a pandemic, a 150 basis point rate drop, damage to our largest and most profitable business, student loan refinance, only to face a 500 basis point increase in rates and the collapse of venerable financial institutions in our neighborhood. The innovations we have driven to scale our non-lending revenue, which are capital-light and high ROE, have enabled us to grow our total revenue by more than 20% year-over-year for 17 consecutive quarters, as well as grow both our members and products by 35% or more year-over-year, excluding digital asset accounts transferred in 2023. Our performance in the hard times is what gives me strong confidence in our future.
Today, we face fewer headwinds than any point in our history. We’re heading into 2025 with the most favorable conditions of the last seven years with declining rates and a stable economy, with the most diverse business we’ve ever had, with more members in our ecosystem, and more products that serve their needs than ever before.”
8. Beam Therapeutics Inc. (NASDAQ:BEAM)
Short Interest as % of Shares Outstanding: 14.45%
Number of Hedge Fund Investors In Q3 2024: 24
Ark Invest’s Q3 2024 Stake: $160 million
Beam Therapeutics Inc. (NASDAQ:BEAM) is another biotechnology play in Cathie Wood’s portfolio. It is a classic genomic play, the riskiness of which Wood has admitted as we alluded to in our introduction to this piece. Beam Therapeutics Inc. (NASDAQ:BEAM) earns revenue through license and collaboration at this point, which makes it unsurprising that short interest is high in the company. The firm’s revenue structure also means that it is a long-term play that will not yield immediate results in the absence of dramatic catalysts. The catalyst might come from Beam Therapeutics Inc. (NASDAQ:BEAM)’s leading drug candidate BEAM-101. This drug targets sickle cell disease and thalassemia, two of the most complicated illnesses in healthcare. As a result, any success in developing drugs could propel Beam Therapeutics Inc. (NASDAQ:BEAM) to new heights. On the flip side, negative outcomes such as the death of a patient in the trial might make investors scurry to other stocks. The firm also benefits from hefty cash and equivalents of $1.1 billion that can help it fund expenses for quite some time.
Beam Therapeutics Inc. (NASDAQ:BEAM)’s management commented on its sickle cell treatment during the Q3 2024 earnings call. Here is what they said:
“In sickle cell disease, we have a validated regulatory pathway available for BEAM-101, which the BEACON trial is designed to pursue. We also have a next generation program using our ESCAPE technology designed to expand the addressable patient population by eliminating chemotherapy from transplant. Beginning today and continuing at ASH, we’re reporting the first clinical data from our hematology franchise. Initial data from our BEACON Phase 1/2 trial support the potential for meaningful clinical differentiation of BEAM-101 compared to currently available treatments for sickle cell disease. We will also be reporting non-human primate data for our ESCAPE technology that validate our vision of enabling gene editing and stem cell transplant, using only antibody based conditioning avoiding chemotherapy altogether.”
7. Twist Bioscience Corporation (NASDAQ:TWST)
Short Interest as % of Shares Outstanding: 15.40%
Number of Hedge Fund Investors In Q3 2024: 24
Ark Invest’s Q3 2024 Stake: $242 million
Twist Bioscience Corporation (NASDAQ:TWST) is an upstream genetic testing company. As compared to others that develop genetic testing products and drugs, the firm supplies raw materials to the industry. This exposes Twist Bioscience Corporation (NASDAQ:TWST) to the fate of the genomics industry, which has recently been busy churning out treatments for sickle cell disease. Additionally, the business model also somewhat ‘de-risks’ Twist Bioscience Corporation (NASDAQ:TWST) since its products are also used in other industries such as agriculture. The firm’s shares are up 51% year-to-date as it benefits from factors such as a robust fourth-quarter performance which saw revenue grow by 27% to $84.7 million. This overshot consensus analyst estimates of $82.2 million and investors were further impressed by Twist Bioscience Corporation (NASDAQ:TWST) being able to beat its gross margin guidance by posting 42.1%. The firm’s fiscal first-quarter revenue guidance of $87 million also surpassed analyst estimates of $85 million.
Twist Bioscience Corporation (NASDAQ:TWST)’s management commented on its robust performance during the Q4 2024 earnings call. Here is what they said:
“Trends over the quarter and the year came from our Express product portfolio and genes as a whole, alongside continued growth in our NGS tools portfolio. We are also seeing positive traction in biopharma. Overall, the business remains strong and we are confident that this momentum will carry us into fiscal 2025. Before we dive into the details of the quarter, it’s worthwhile reflecting on our journey since our IPO just over six years ago. During this time, we have been on a strong upward trajectory, growing our customer base, expanding our product portfolio and capturing market share, all by leveraging our proprietary platform to drive sustainable growth. Our differentiated technology to miniaturized chemistry and manufacture of DNA on silicon provide significant advantages for our customers and for Twist.
Our platform allows us to deliver high quality products at an affordable price and provide significant sustainability advantages over plate based approaches. Importantly, we offer custom synthesis at unmet scale, which enables a growing menu of products in different iterations geared for diversification. We have harnessed our innovation engine to strategically and judiciously expand our product portfolio. Today, with our base of more than 3,500 customers across multiple industries, hundreds of SKUs having a wide range of diversifications, increasing market share in multiple markets, we are operating with incredible execution and financial discipline. We are now in the final push towards an incredibly important milestone, crossing the threshold of adjusted EBITDA breakeven.”
6. Intellia Therapeutics, Inc. (NASDAQ:NTLA)
Short Interest as % of Shares Outstanding: 16.07%
Number of Hedge Fund Investors In Q3 2024: 30
Ark Invest’s Q3 2024 Stake: $251 million
Intellia Therapeutics, Inc. (NASDAQ:NTLA) is another genomic stock. The firm is developing treatments for diseases such as angioedema, lung ailments, hemophilia, and others. Since Intellia Therapeutics, Inc. (NASDAQ:NTLA) does not sell any drugs in the market, under-development treatments are crucial to the firm’s hypothesis. Two of its leading drug candidates are NTLA-2002 and NTLA-2001. These drugs target angioedema and cardiomyopathy, respectively. They are currently in Phase 2 trials and Intellia Therapeutics, Inc. (NASDAQ:NTLA) is enrolling patients for NTLA-2002’s Phase 3 trials. The firm’s shares are down 52% year-to-date, but the two drugs will enter Phase 3 trials soon to further create certainty around Intellia Therapeutics, Inc. (NASDAQ:NTLA)’s portfolio. Additionally, the firm also has other drugs such as NTLA-3001 in its portfolio which creates additional room to get a drug to the market.
Intellia Therapeutics, Inc. (NASDAQ:NTLA)’s management commented on its under-development drugs during the Q3 2024 earnings call. Here is what they said:
“In October, at The American College of Allergy, Asthma and Immunology Annual Scientific Meeting, we presented unprecedented positive results from our Phase II study of NTLA-2002 for the treatment of Hereditary Angioedema. These results showed that a simple one-time infusion of NTLA-2002 offers patients the potential for a functional cure. For people living with HAE, current treatment options are limited to chronically administered prophylactic therapies to prevent or manage attacks, and the use of on-demand therapy to control breakthrough attacks.
Because of this, available therapies place emphasis on attack rate reductions for their lifelong treatments. However, our market research is clear; patients want to lead a normal life, one that is free of attacks, free of chronic treatment, and free of mental burden around potential triggers and the loss of access to their therapies. The emerging profile for NTLA-2002 provides hope that a single intervention may lead to the complete elimination of angioedema attacks and remove the need for subsequent prophylaxis therapy for most patients, the opportunity to deliver such a profile will create significant value for patients and the healthcare system as a whole. We’re extremely encouraged for our Phase II results, and we’re actively screening patients in the Phase III HAELO study.”
5. Arcturus Therapeutics Holdings Inc. (NASDAQ:ARCT)
Short Interest as % of Shares Outstanding: 16.56%
Number of Hedge Fund Investors In Q3 2024: 17
Ark Invest’s Q3 2024 Stake: $48.7 million
Arcturus Therapeutics Holdings Inc. (NASDAQ:ARCT) is another biotechnology company in Cathie Wood’s portfolio that does not generate revenue by selling medicines. The firm makes money from collaborations; however, it is developing drugs to treat high blood ammonia and cystic fibrosis. As Arcturus Therapeutics Holdings Inc. (NASDAQ:ARCT) is a pre-revenue firm, the importance of its under-development drugs is paramount to its hypothesis. Two key drugs in its portfolio are ARCT-801 and ARCT-032 which target the aforementioned diseases. Both these treatments are in Phase 2 trials, and as of its third-quarter earnings update, Arcturus Therapeutics Holdings Inc. (NASDAQ:ARCT) plans to share their data in the first half of 2025. The firm is also developing a coronavirus treatment, and its Phase 3 data shows that the drug can protect against the virus and its variants for as long as six months post-vaccination.
Arcturus Therapeutics Holdings Inc. (NASDAQ:ARCT)’s management commented on its two key drugs during the Q3 2024 earnings call. Here is what they said:
“Now shifting our attention to our mRNA therapeutics franchise, let’s begin with an update on ARCT-032. ARCT-032 is an inhaled messenger RNA therapeutic for cystic fibrosis, and it’s formulated with Arcturus’ lunar delivery technology that differentiates us from our competitors. In September, we received clearance of an investigational new drug application to the U.S. Food and Drug Administration. The FDA clearance of the IND application enables Arcturus to initiate a Phase 2 multiple ascending dose study to evaluate the safety, tolerability, and efficacy of ARCT-032 in people with cystic fibrosis.
Our team is actively engaged in onboarding a substantial number of clinical sites to help us in this effort. We are fortunate to be able to be working closely with the CF Foundation in this process. The Phase 2 study is presently screening individuals with CF who do not qualify for or benefit from CFTR modulator medicines due to dysfunctional or absent CFTR protein and/or drug intolerance. This study will allow us to evaluate FEB lung function improvement in individuals with CF. And I’m very pleased to report that the company is on track to share in-term Phase 2 proof of concept data for our CF program in the first half of 2025. I’ll now move on to our ARCT-810 program. This is our messenger RNA therapeutic candidate for Ornithine Transcarbamylase or OTC deficiency.
Earlier this year, Arcturus announced the expansion of the Phase 2 clinical program of ARCT-810 into the United States. This open label multiple dose study evaluating pharmacodynamics and safety is currently enrolling adults and adolescents requiring clinical management for OTC deficiency. Our placebo-controlled Phase 2 European study has completed the dosing phase. So these concurrent Phase 2 studies in Europe and the U.S. will allow us to evaluate meaningful biomarker changes in individuals with OTC deficiency. And I’m happy to report that the company is on track to share in-term Phase 2 proof of concept data in the first half of 2025.”
4. Archer Aviation Inc. (NYSE:ACHR)
Short Interest as % of Shares Outstanding: 17.81%
Number of Hedge Fund Investors In Q3 2024: 24
Ark Invest’s Q3 2024 Stake: $71.3 million
Archer Aviation Inc. (NYSE:ACHR) is a new-age company that is developing electric vertical take-off and landing (eVTOL) aircraft. These aim to primarily target the urban air mobility market, and they also make the high short interest unsurprising. Archer Aviation Inc. (NYSE:ACHR) faces risks from two key fronts. Firstly, since eVTOL aircraft are a new vehicle class, the firm is dependent on the Federal Aviation Administration’s (FAA) approvals for its vehicles. A large portion of Archer Aviation Inc. (NYSE:ACHR)’s story depends on its Midnight aircraft. The firm’s shares have been on quite a ride this November. They soared by a whopping 204% during the month on the back of positive news such as Archer Aviation Inc. (NYSE:ACHR) being able to sell planes in Japan. However, the shares are down by 29.5% since then particularly due to automotive giant Stellantis’ troubles. Looking ahead, regulatory approvals and key deals for its aircraft will prove to be key catalysts for the shares.
Archer Aviation Inc. (NYSE:ACHR)’s management shared details about its commercialization plans and the Stellantis partnership during the Q3 2024 earnings call. Here is what they said:
“To support our commercialization plans, I’m proud to share that we are set to open our manufacturing facility in Covington, Georgia in the coming weeks. Our team has delivered this facility on time and on budget at a cost of approximately $65 million. At scale, this facility will be capable of producing up to 650 aircraft per year, setting a powerful foundation for us to scale our production alongside our operations. Now that we have substantially completed construction, we’re on track to begin loading in the manufacturing line equipment by year-end, with our first line set to become operational early next year. From there, we plan to ramp up to a production rate of two aircraft per month by year’s end. Stellantis continues to be a deeply committed partner on this journey to help us achieve scaled manufacturing.
As I discussed last quarter, we have an agreement in principle with Stellantis for them to contribute up to an additional approximately $400 million of capital to help scale the manufacturing of our midnight aircraft at this facility. Earlier this week, we announced that we are now seeking shareholder approval of that deal and aim to finalize it by the end of the year. The goal of the structure with Stellantis is to secure future capital for manufacturing growth without taking any unnecessary dilution of a large capital infusion today. We’ll continue to manufacture our powertrain and a select number of test aircraft at our California low-rate production facilities, ensuring continuity for our R&D and test needs. We’re confident this strategy will support a reliable and scalable production flow as we prepare for commercial operations.”
3. Pacific Biosciences of California, Inc. (NASDAQ:PACB)
Short Interest as % of Shares Outstanding: 19.04%
Number of Hedge Fund Investors In Q3 2024: 20
Ark Invest’s Q3 2024 Stake: $56.8 million
Pacific Biosciences of California, Inc. (NASDAQ:PACB) is a genomics company that provides medical devices for applications such as consumables and sequencing kits. Within its industry, the firm enjoys a considerable moat since it makes and sells both long and short-sequencing items. However, the exclusive reliance on gene sequencing means that the industry has to thrive for Pacific Biosciences of California, Inc. (NASDAQ:PACB) to prosper. The firm’s fate depends on spending in the biotechnology industry, and the spending, in turn, is dependent on interest rates and the broader health of the economy. Pacific Biosciences of California, Inc. (NASDAQ:PACB) is currently planning an upgrade for its Revio HiFi sequencing systems, and along with product adoption, the narrative also depends on the firm’s goal to achieve $75 million in cost savings by year-end and cash flow positivity by 2026.
Pacific Biosciences of California, Inc. (NASDAQ:PACB)’s management shared its strategic goals during the Q3 2024 earnings call. Here is what they said:
“We continue to improve our per unit cost of Revio instruments and consumables significantly. We expect to end the year with Revio instrument standard COGS over 10% lower than when we launched the platform and consumable unit costs over 20% lower. These costs and operational improvements are expected to continue beyond 2024, driving quarterly gross margin expansion in 2025 and beyond as some of our recent cost improvements are expected to be realized in 2025.
. . . Finally, we remain committed to our plan of turning the business cash flow positive by the end of 2026 under various revenue scenarios which include revenue growth in 2025 and beyond with new products and growing consumables often increasing Revio install base, expanding gross margins with reduced manufacturing per unit costs and a continued mix shift to consumables and lower non-GAAP operating expenses in 2025 compared to 2024 with minimal growth expected thereafter. We will provide more details behind our assumptions and our updated long term guidance at a later date and more details about our 2025 guidance early next year.”
2. Recursion Pharmaceuticals, Inc. (NASDAQ:RXRX)
Short Interest as % of Shares Outstanding: 22.53%
Number of Hedge Fund Investors In Q3 2024: 16
Ark Invest’s Q3 2024 Stake: $215.9 million
Recursion Pharmaceuticals, Inc. (NASDAQ:RXRX) is a pre-revenue stage biotechnology company that is developing treatments for a wide variety of illnesses. These include cancer, spine ailments, and brain diseases. While most pre-revenue biotechnology firms depend on a handful of drugs in their portfolio, Recursion Pharmaceuticals, Inc. (NASDAQ:RXRX) stands out from the back by having more than ten drugs in trials. One drug that is key to its hypothesis is its brain illness treatment REC-994, which met key objectives during its Phase 2 trial. Recursion Pharmaceuticals, Inc. (NASDAQ:RXRX) also benefits from a strong technological aspect through which it has collaborated with Google Cloud and NVIDIA for drug discovery. NVIDIA has invested $50 million in the firm for AI-driven drug discovery, and as it waits to commercialize any drugs, Recursion Pharmaceuticals, Inc. (NASDAQ:RXRX) earns money through partnerships with firms such as Exscientia.
Recursion Pharmaceuticals, Inc. (NASDAQ:RXRX) management shared key details about its Exscientia partnership during the Q2 2024 earnings call. Here is what they said:
“And I think this deal, in many ways, will make Recursion perhaps a partner of choice for others in the industry. Finally, our platform. Our platforms at Recursion really focused on exploration of biology, hit discovery, target discovery. We’ve been building that for over a decade, and our colleagues at Exscientia have really been building for about the same amount of time this incredible precision chemistry platform. The ability to go from a hit to a development candidate with active learning and automated synthesis, is really, really exciting to us and putting these two platforms together, we think, is going to put us on the cutting edge. And finally, when we combine these businesses, we believe that we will have not only the team, the tools and the technology to go to the distance, but we’ll also have the resources to do that.
At the end of Q2, the companies combined have roughly $850 million, which we believe, with the right kind of operational synergies, puts us on a runway into 2027.”
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.
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