ARK Invest Stock Portfolio: Top 10 Stock Picks for 2024

2. Roku, Inc. (NASDAQ:ROKU)

Stake Value as of Q3 2024: $837,837,992

Roku, Inc. (NASDAQ:ROKU) is an American streaming technology company, that produces TVs and streaming players, distributes streaming services on its platform, and licenses its technology to other manufacturers.

Founded by Anthony Wood, the company aims to connect the entire TV ecosystem worldwide through its platform. According to Hypothesis Group, as of December 2022, Roku, Inc. (NASDAQ:ROKU) is the number one streaming platform in the US, Canada, and Mexico by number of hours streamed.

On October 30, the company announced financial results for the third quarter of 2024. Streaming hours increased 20% year-over-year during the quarter, signaling strong growth in engagement. It also witnessed growing engagement per account, with streaming hours per household reported at 4.1 hours in Q3 compared to 3.9 hours during the same period last year.

Net revenue for the quarter was up 13% year-over-year to a total of $1.06 billion, with $908 million coming from platform revenue which grew 15% from last year, driven by stream services distribution and advertising activities. The most notable performance within advertising came from political advertising in the run-up to the presidential elections. Device revenue also expanded 23% in Q3 and was attributed to the expansion of retail distribution of Roku-branded TVs.

On October 9, Roku, Inc. (NASDAQ:ROKU) and Instacart announced the expansion of their advertising partnership, offering new shoppable formats and superior targeting. Wall Street analysts are bullish on the stock and have a consensus BUY rating. They also anticipate a 5% upside potential, in median terms, in its share price.

It is among the top picks from the ARK Invest stock portfolio, representing 7.66% of ARK’s overall holdings. ARK is the largest stakeholder in the company with investments valued at over $837 million.