This article discusses the ARK Invest Stock Portfolio: Top 10 Stock Picks for 2024.
ARK Investment Management LLC, more commonly known as ARK Invest, is an American investment management firm headquartered in St. Petersburg, Florida, that oversees several actively managed ETFs. It was registered in 2014 by Catherine Wood, who is known for making big bets on disruptive technology like self-driving cars and genomics. The investment fund has around $6.7 billion in assets under management.
READ ALSO: Cathie Wood’s 11 Favorite AI Stocks and Jim Cramer November Portfolio: Top 10 Stocks.
Wood’s flagship fund has faced pressures for the third straight year, with outflows at nearly $1.8 billion during the first six months of 2024, which was close to triple the outflows seen in 2023. Its closing price of $57.85 on November 11 was down 60% from the highs of early 2021. In a letter posted to investors in July, she acknowledged that the fund’s performance was challenged by certain stock picks and the overall macroeconomic environment, but added that ‘our conviction in and commitment to investing in disruptive innovation have not wavered’.
The ARK Invest CEO argued that the fund’s holdings were set to benefit once the Fed rate cuts begin and that she anticipates another period of strong returns, reminiscent of the gains witnessed during the initial days of the pandemic. In August this year, in the hope of buying the dip, Wood piled into several tech stocks whose shares had tumbled in the months prior. Since the announcement of interest rate cuts in September, ARK’s flagship ETF has grown 25%, with a major upward spike in the week running up to and following the presidential elections, which Donald Trump won on November 5.
In a post-election message released to investors, Wood likened the country’s current economic situation to the Reagan era in the early 1980s, when the interest rate and tax cuts resulted in robust economic growth, eventually helping the United States grow out of deficit and into a surplus in the Clinton era.
Cathie Wood predicts a bright future and has stated that Trump’s policies will ‘turbocharge’ the American economy more powerfully than the Reagan Revolution did. She expects the newly elected president to slash regulations and cut tax rates, as he did during his first term.
Trump during his election campaign vowed to reduce the corporate tax rate to 15%, after having already cut the rate from 35% to 21% in his presidency between 2017 and 2021. Having said that, Wood believes that businesses will put investments on hold until the promised cuts are delivered, which means the positive anticipated impact on the economy will be delayed.
With that said, let’s now head over to the list of the top stocks from the ARK Invest portfolio.
A portfolio manager studying various stocks and other securities on a tablet.
Methodology
We scanned the ARK Investment Management portfolio, as of September 30, 2024, and picked the top 10 stocks according to their stake value. The figures were sourced from the Insider Monkey Database.
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).
ARK Invest Stock Portfolio: Top 10 Stock Picks for 2024:
10. UiPath Inc. (NYSE:PATH)
Stake Value as of Q3 2024: $268,157,467
UiPath Inc. (NYSE:PATH) is an artificial intelligence software and enterprise automation company that offers a range of robotic process automation (RPA) solutions. It was founded in Bucharest, Romania, in 2005 and is now headquartered in New York City.
The stock has lost 47% of its share value year-to-date due to an abrupt CEO change and lower guidance for the full year declared at the end of the first fiscal quarter, which spooked investors. Despite the crash, Cathie Wood, in late May, purchased shares worth $28 million of one of her favorite AI stocks.
The share price is beginning to recover and has gained 5% since the announcement of strong results for Q2 2025 on September 5. During the quarter, the company beat its guidance and posted significant growth in key financial metrics. UiPath Inc. (NYSE:PATH)’s ARR grew 19% year-over-year to a total of $1.55 billion, attributed to a net new ARR of $43 million. Revenue for the quarter was posted at $316 million, up 10% from last year.
The company also witnessed a robust increase in its cloud ARR, for both hybrid and SaaS, which ended the quarter at $850 million, representing a 65% increase. The number of customers with $1 million or more in ARR increased to 293, while those with at least $100,000 in ARR grew to 2,163 customers. EPS for the quarter was logged at $0.04, beating expectations of $0.03.
After impressive results in Q2 2025, UiPath Inc. (NYSE:PATH) has raised its guidance for the third quarter. It anticipates revenue between $345 million and $350 million, an ARR between $1.60 billion and $1.605 billion, and a non-GAAP operating income of around $27 million. The company is committed to focusing on its growth products and enhancing partnerships to become a more customer-centric organization.
Wall Street analysts are still cautious about the stock, with a consensus Hold rating. However, they forecast a median share price upside potential of 12% for UiPath. It is among the top picks from the ARK Invest stock portfolio, representing 2.45% of its holdings.
9. CRISPR Therapeutics AG (NASDAQ:CRSP)
Stake Value as of Q3 2024: $352,285,403
CRISPR Therapeutics AG is a gene editing company focused on developing CRISPR/Cas9-based therapeutics to treat genetically-defined diseases and engineer advanced cellular therapies. It is headquartered in Zug, Switzerland.
On October 17, ARK Invest bought 91,665 shares of the company, valued at close to $4.5 million, indicating Cathie Wood’s strong conviction in the potential of CRISPR therapeutics. In December 2023, the FDA approved CASGEVY, a cell-based gene therapy, for the treatment of sickle cell disease (SCD). The therapy has also been approved to treat patients of SCD and transfusion-dependent beta-thalassemia (TDT) aged 12 and above in Switzerland and Canada.
On November 5, CRISPR Therapeutics AG (NASDAQ:CRSP) provided business updates and announced financial results for the third quarter of 2024. There are now 45 authorized treatment centers for CASGEVY worldwide, with around 40 patients having cells collected. This is a notable increase from previous quarters and has received considerable interest from analysts and investors.
The company’s cash position is improving and was measured at approximately $1.94 billion as of September 30, up from $1.7 billion at the end of 2023. The increase was driven by proceeds from the $280 million in February 2024 registered direct offering and $200 million received from Vertex Pharmaceuticals in payments connected with the approval of CASGEVY.
Wall Street analysts have a consensus BUY rating on CRISPR Therapeutics AG (NASDAQ:CRSP), with a median share price upside potential of 63%. Hedge fund sentiment around the stock is also encouraging. Amongst hedge funds tracked by Insider Monkey, 29 held a stake in the company, as of Q2 2024, up from 27 at the end of the first quarter. CRSP is one of the best stock picks from the ARK Invest portfolio.
8. Shopify Inc. (NASDAQ:SHOP)
Stake Value as of Q3 2024: $374,326,277
Shopify Inc. (NYSE:SHOP) is a global commerce company, headquartered in Ottawa, Canada, that provides a commerce platform over the Internet to allow businesses to sell online and in-person.
Its share price has surged 60% since the announcement of second quarter results for Q2 on August 7 as it marked five successive quarters of revenue (excluding logistics) growing 25% or above. The growth has been spurred by the company making AI-enabled tools available to more users in June to attract businesses. This resulted in a 51% increase in merchant acquisition in Q2 and a boost in growth internationally, with half of all merchants who joined the platform during the quarter, coming from outside the core English-speaking markets.
The robust results during the second quarter have been well received by investors. Baron Global Advantage Fund stated the following regarding Shopify Inc. (NYSE:SHOP) in its Q3 2024 investor letter:
Shopify Inc. (NYSE:SHOP) is a cloud-based software provider for multi-channel commerce. Shares rose 21.3% after reporting strong financial results with revenue growth of 25% year-on-year, accelerating from the prior quarter. Shopify’s operating margins also outperformed, at 14.6%, or nearly 3% better than expected, alleviating investor concerns over an upcoming investment cycle. While the company continues gaining share in its core business, we are increasingly seeing data points that point to a successful expansion to new opportunities including international, B2B, and offline. Despite volatility in the pace of reinvestments and margin expansion, we remain shareholders due to Shopify’s strong competitive positioning, innovative culture, and long runway for growth, as it still holds less than a 2% share of the global commerce market.
Shopify Inc. (NYSE:SHOP) has a diverse business model spanning many verticals and geographies, including direct-to-consumer and B2B sellers, because of which the company continues to attract high-profile and high-volume merchants. This reiterates Shopify’s growing recognition as a premier commerce platform. It also has a thriving partner ecosystem, further bolstered through a new partnership with Oracle, which was agreed upon in June to deliver more meaningful customer experiences by integrating Oracle Unity Customer Data Platform (CDP) with Shopify’s commerce platform.
Wall Street analysts maintain a consensus Buy rating on SHOP. Hedge fund sentiment also remains strong. As of Q2 2024, 56 hedge funds tracked by Insider Monkey held investments in the company. Shopify Inc. (NYSE:SHOP) is one of the top picks from the ARK Invest stock portfolio, representing 3.42% of its holdings.
7. Palantir Technologies Inc. (NYSE:PLTR)
Stake Value as of Q3 2024: $409,861,198
Palantir Technologies Inc. (NYSE:PLTR) is a technology company headquartered in Denver, Colorado, that specializes in software platforms for data analytics. These platforms are used by government agencies, financial institutions, and several large corporations. It is one of the top picks from the ARK Invest stock portfolio, with the asset management firm having a stake of over $409 million in the company.
The stock has gained 41% since the announcement of financial results for the third quarter of 2024 on November 4. Revenue for the quarter was posted at $726 million, up 30% year-over-year and 7% compared to Q2 2024, driven by a surge in demand for artificial intelligence, with customer count growing 39% from last year.
In a letter to shareholders on the same day, CEO Alex Karp pointed out the speed of adoption of its platforms and AI capabilities by institutions in the U.S. being a major driver behind Palantir Technologies Inc. (NYSE:PLTR)’s growth. U.S. revenue grew 44% from last year to a total of $499 million for the quarter, of which 64% came from the U.S. government customer base, with the remaining being commercial revenue. U.S. government revenue grew 30% year-over-year during Q3.
Palantir Technologies Inc. (NYSE:PLTR) closed 104 deals in the quarter, contributing over $1 million toward revenues. Adjusted EPS was logged at 10 cents, beating expectations of 9 cents. EPS for the quarter was 43% higher year-over-year. Palantir also ended with strong liquidity, as cash, cash equivalents, and other short-term securities valued at $4.6 billion.
Looking ahead, the company expected total revenue between $2.805 and $2.809 billion for the full year, of 2024, and forecasts income from operations to be in the range of $1.054 and $1.058 billion. Palantir Technologies Inc. (NYSE:PLTR) has also raised its free cash flow guidance for 2024 to over $1 billion. In September, S&P Global announced the inclusion of the company in the S&P 500 stock index, which has further bolstered the company’s encouraging outlook.
6. Robinhood Markets, Inc. (NASDAQ:HOOD)
Stake Value as of Q3 2024: $420,959,150
Robinhood Markets, Inc. (NASDAQ:HOOD) is an American financial services company that provides an electronic trading platform to facilitate the trading of stocks, ETFs, cryptocurrency, and other equities and securities.
In October this year, Cathie Wood’s ARK Invest divested around $36 million worth of Robinhood Markets, Inc. (NASDAQ:HOOD) shares from its three funds. The decision coincided with the surge in the stock’s share price, because of which ARK had to sell a portion of its stake under Rule 12d3-1, which prohibits funds from acquiring more than 5% of an issuer’s total assets.
Robinhood’s share price has gained 140% year-to-date as of November 8, driven by a robust financial performance this year, involving not only an increase in revenue but also significant growth in assets under custody. Q3 2024 was another impressive quarter for the company, with net deposits posted at $10 billion or more for the third successive quarter as Robinhood continues to increase wallet share. Net deposits are now valued at $34 billion for the year, which is well above the record of $31 billion set in 2020.
Customer assets under custody have grown to a record $152 billion. Option contracts were up 47% year-over-year in Q3, bringing the year-to-date total to $1.2 billion, surpassing the high set in 2021. Total net revenue was posted at $637 million, which is the second-highest quarterly revenue in the company’s history and up 36% from last year. The year-to-date revenue is close to $2 billion, which has broken last year’s record of $1.9 billion.
Cryptocurrency revenue has surged and grown 165% year-over-year to $61 million. In June, Robinhood Markets, Inc. (NASDAQ:HOOD) agreed to acquire the global crypto exchange, Bitstamp, which has offices in the UK, US, Luxembourg, Slovenia, and Singapore. The acquisition will likely add further revenue streams for Robinhood in stablecoins, staking, and derivatives.
Wall Street analysts have a consensus BUY rating on the stock. It is among the top picks from the ARK Invest stock portfolio, representing 3.84% of its portfolio, with investments valued at over $420 million.
5. Block, Inc. (NYSE:SQ)
Stake Value as of Q3 2024: $444,767,776
Block, Inc. (NYSE:SQ) is an American company that offers financial services to clients through its two segments: Square and Cash App.
The Square segment includes managed payment services, hardware, software solutions, and other financial services that help sellers start and run their businesses. The Cash App segment offers consumers financial tools via the mobile app, allowing them to make payments, invest in stocks and bitcoin, and more. The company was formerly known as Square, Inc., until 2021, when it decided to change the name to Block, Inc. (NYSE:SQ), reflecting its growing focus on crypto and blockchain technologies.
On November 7, the company held its third-quarter earnings call, announcing results that trailed Wall Street’s revenue expectations. Revenue for Q3 was posted at $5.98 billion, falling short of the expected $6.24 billion, signaling softening consumer demand. However, Block, Inc. (NYSE:SQ) narrowly beat profit expectations, logging an EPS of $0.88. This was one cent higher than estimates and was powered by company-wide expense discipline.
Shares have fallen 4% since these results, but analysts remain bullish on the stock and have a consensus BUY rating, with a median share price upside potential of 10.3%. They believe that a soft landing for the economy with Fed cuts is likely to boost consumer spending in the months ahead.
ARK Invest has the largest stake in the company, valued at over $444 million, as of September 30, 2024. The investment represents 4.06% of ARK’s portfolio, making Block, Inc. (NYSE:SQ) one of the top picks from the ARK Invest stock portfolio.
4. Roblox Corporation (NYSE:RBLX)
Stake Value as of Q3 2024: $524,100,790
Roblox Corporation (NYSE:RBLX) is an American company, headquartered in Menlo Park, California, that provides users with an immersive platform for connection and communication. It is the developer of Roblox, an online gaming platform and game creation system, that allows users to play games created by them and other users.
The gaming platform offers free access to millions of games and generates revenue through in-game purchases. Its virtual currency, Robux, facilitates these purchases. The currency has helped the company attract gamers and developers to the platform, as they can convert Robux into real money.
Roblox Corporation (NYSE:RBLX) posted stellar results for Q3 on October 31, with revenue posted at $919 million, growing 29% from last year, and above the guidance provided at the end of Q2 of between $860 million and $885 million. The sale of virtual currency was reported at $1.13 billion, beating estimates of between $1 billion and $1.025 billion. DAUs for the quarter reached a record 88.9 million, growing 27% year-over-year with noticeable growth across all regions, most notably in Japan and India.
Roblox Corporation (NYSE:RBLX) now expects full-year bookings to be between $4.34 billion and $4.37 billion, up from initial projections of between $4.18 billion and $4.23 billion. With the gaming industry booming and set to grow further over the coming years, the general outlook for the stock is encouraging. According to the World Economic Forum, the gaming industry was valued at $235.7 billion in 2022 and is expected to cross the $321 billion mark by 2026.
Wall Street analysts have a consensus BUY rating on the stock, with a median share price upside potential of 6%. It is among the top picks from the ARK Invest stock portfolio, representing 4.79% of the asset management company’s investments.
3. Coinbase Global, Inc. (NASDAQ:COIN)
Stake Value as of Q3 2024: $577,484,187
Coinbase Global, Inc. (NASDAQ:COIN) is an American publicly traded company that provides a platform for users to engage in various activities with their crypto assets. It also offers crucial technology and infrastructure for the crypto economy, allowing developers to build crypto products and accept assets as payment.
The company is closely tied to the general condition of the cryptocurrency market. While the market has been volatile this year, sentiment toward the industry has improved over the last few weeks in anticipation of a Republican win in the presidential elections, with Donald Trump positioning himself as pro-bitcoin. Another positive development for the market has been the SEC approving an ETF to track the spot price of ether and bitcoin.
Bitcoin has gained over 30% since Trump’s victory in the November 5 elections and is closing in on $90,000, as investors expect a string of regulatory clearances for digital currencies under the new administration. Coinbase Global, Inc. (NASDAQ:COIN)’s shares have also surged 74% since the election, from a close of $186.27 a day before polling to $324.24 as of the close of day on November 11.
The company announced financial results for the third quarter of 2024 on October 30. Revenue was posted at $1.2 billion, with an adjusted EBITDA of $449 million. Earnings were logged at 62 cents per share, beating analysts’ estimates of $0.45 per share. The balance sheet further strengthened, growing 5% quarter-over-quarter to end Q3 with $8.2 billion in USD resources. Trading volume was down 18% compared to the previous quarter to $185 billion due to lower crypto asset volatility and average asset prices.
Coinbase Global, Inc. (NASDAQ:COIN)’s trajectory looks encouraging amid a Trump win. Wall Street analysts remain bullish on the stock and have a consensus BUY rating. It is among the top picks from the ARK Invest stock portfolio, representing 5.28% of ARK’s holdings.
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.
1. Tesla, Inc. (NASDAQ:TSLA)
Stake Value as of Q3 2024: $1,200,562,888
Tesla, Inc. (NASDAQ:TSLA) is an American automotive and clean energy company, headquartered in Austin, Texas. It is a pioneer in the EV industry and has significantly contributed to the global shift toward sustainable transportation through its electric cars.
The company’s share price has surged 44% since Trump’s election victory, which has lifted Tesla back into the elite club of companies having a market cap of $1 trillion. The automotive company has added a full third in capitalization since Election Day, according to global business magazine, Fortune.
Tesla, Inc. (NASDAQ:TSLA)’s impressive performance during the third quarter of 2024, driven by strong growth in vehicle deliveries, has also raised investor optimism. Revenue in Q3 increased 8% year-over-year to reach a total of $25.18 billion, falling just shy of expectations of $25.37 billion. However, it beat earnings expectations, logging an EPS of 72 cents against forecasts of 58 cents.
Tesla, Inc. (NASDAQ:TSLA) experienced improved profit margins during the quarter, fueled by automotive regulatory credit revenue of $739 million. Automakers are mandated to obtain a certain amount of regulatory credits every year and often purchase them from companies like Tesla if they fail to meet the target themselves. Since it only manufactures electric vehicles, Tesla, Inc. (NASDAQ:TSLA) has excess credits.
During the earnings call, Elon Musk mentioned that he expects vehicle growth between 20% and 30% next year, due to the advent of autonomy and the lower cost of vehicles. He was also confident about Cybercab reaching volume production in 2026, aiming for at least 2 million units a year. Moreover, driverless ride-hailing services are planned for launch in California and Texas next year.
Tesla is the top pick from the ARK Invest portfolio, with investments valued at $1.2 billion, representing nearly 11% of ARK’s holdings.
Overall, TSLA ranks first among the ARK Invest Stock Portfolio: Top 10 Stock Picks for 2024. While we acknowledge the potential of automotive companies, 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 TSLA but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
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