In this article, we discuss the Ark Invest Stock Portfolio: Top 5 Picks. If you want to read our detailed analysis of these stocks, go directly to Ark Invest Stock Portfolio: Top 10 Picks.
5. Coinbase Global, Inc. (NASDAQ:COIN)
Number of Hedge Fund Holders: 49
Weight as of September 27: 4.68%
Coinbase Global, Inc. (NASDAQ:COIN) ranks fifth on the list of Ark Invest’s top 10 stock picks. Coinbase Global, Inc. (NASDAQ:COIN) serves as a cryptocurrency platform for over 68 million users at the end of Q2 2021.
On September 14, Piper Sandler analyst Richard Repetto reiterated an Overweight rating on Coinbase Global, Inc. (NASDAQ:COIN) with a price target of $335 per share.
In the second quarter of 2021, Coinbase Global, Inc. (NASDAQ:COIN) reported an EPS of $6.78, beating estimates by $4.09. The company’s revenue in the second quarter came in at $2.23 billion and beat revenue estimates by $345.98 million. Coinbase Global, Inc. (NASDAQ:COIN) had 8.8 million monthly transacting users in Q2 2021, up from 1.5 million users in Q2 2020.
At the end of the second quarter of 2021, 49 hedge funds in the database of Insider Monkey held stakes worth $2.96 billion in Coinbase Global, Inc. (NASDAQ:COIN), up from 0 in the preceding quarter.
In the Q2 2021 Investor Letter, Miller Value Partners highlighted a few stocks and Coinbase Global Inc. (NASDAQ:COIN) is one of them. Here is what the fund said:
“Coinbase (COIN) became a public company in mid-April following their direct listing at a reference price of $250. Coinbase is a cryptocurrency exchange that allows consumers, financial institutions and businesses to transact between fiat and cryptocurrencies and securely store and use cryptocurrencies. We believe over the long term the company has the potential to be the leading technology platform in the growing cryptocurrency space.
COIN’s 2021 revenues are expected to be 4.5x its 2020 revenues as crypto prices and volumes have exploded. It trades at 30x this year’s earnings, which is quite a steal for a quickly growing company in this market. That’s because the market believes this is peak cycle revenues and earnings, and retail margins will be pressured. That all very well may be true, but we see significant potential for the business over the long term as the nascent industry continues to grow and COIN cements it’s position as the leading platform.”
4. Roku, Inc. (NASDAQ:ROKU)
Number of Hedge Fund Holders: 61
Weight as of September 27: 5.28%
Roku, Inc. (NASDAQ:ROKU) is a California-based TV streaming platform and it ranks fourth on the list of Ark Invest’s top 10 stock picks. Roku, Inc. (NASDAQ:ROKU) markets TV streaming players where users get access to movies, news, live sports, music, and TV episodes. At the end of the second quarter of 2021, Roku, Inc. (NASDAQ: ROKU) had 55.1 million active accounts.
At the end of the second quarter of 2021, 61 hedge funds in the database of Insider Monkey held stakes worth $5.63 billion in Roku, Inc. (NASDAQ:ROKU), down from 63 in the preceding quarter worth $3.78 billion.
3. Unity Software Inc. (NYSE:U)
Number of Hedge Fund Holders: 29
Weight as of September 27: 5.32%
Unity Software Inc. (NYSE:U) ranks third on the list of Ark Invest’s top 10 stock picks. The San Francisco-based tech company offers software solutions used in creating video games, animation, and 3D data.
On August 24, Unity Software Inc. (NYSE:U) announced the completion of its acquisition of OTO, an artificial intelligence chatbot that analyzes online multiplayer gaming discussions for potential harmful conduct.
According to the latest data from ARK Investment Management LLC, the hedge fund owned 7.88 million shares of Unity Software Inc. (NYSE:U) worth $1.12 billion as of September 27, 2021, accounting for 5.28% of the Ark Innovation ETF (NYSEARCA: ARKK).
In the second quarter of 2021, Unity Software Inc. (NYSE:U) reported an EPS of -$0.02, beating estimates by $0.10. The company’s second quarter-quarter revenue grew 48% year over year to $273.56 million and beat revenue estimates by $30.82 million.
At the end of the second quarter of 2021, 29 hedge funds in the database of Insider Monkey held stakes worth $7.26 billion in Unity Software Inc. (NYSE:U), down from 39 in the preceding quarter worth $6.69 billion.
2. Teladoc Health, Inc. (NYSE:TDOC)
Number of Hedge Fund Holders: 43
Weight as of September 27: 5.66%
Teladoc Health, Inc. (NYSE:TDOC) is a virtual healthcare company based in New York that ranks second on the list of Ark Invest’s top 10 stock picks. The company provides healthcare services on a business-to-business basis. Teladoc Health, Inc. (NYSE:TDOC) has delivered over 10.5 million virtual health consultations last year.
On September 15, RBC Capital analyst Sean Dodge maintained an Outperform rating on Teladoc Health, Inc. (NYSE:TDOC) with a price target of $260. According to the analyst, the virtual healthcare provider will continue to gain new customers in the following quarters.
At the end of the second quarter of 2021, 43 hedge funds in the database of Insider Monkey held stakes worth $3.57 billion in Teladoc Health, Inc. (NYSE:TDOC), up from 42 in the preceding quarter worth $3.37 billion.
In its Q1 2021 investor letter, ClearBridge Investments mentioned Teladoc Health, Inc. (NYSE:TDOC) and shared their insights on the company. Here is what the fund said:
“Teladoc is a leading play on telemedicine, a hyper growth market with significant opportunity for increases in utilization accelerated by the COVID19 environment. The company is well-positioned for this evolution in treatment after years of work building out its network of doctors and payors. Its recent merger with Livongo expands the company’s customer base and increases the number of products to cross-sell such as holistic, chronic disease, and second opinion services. International expansion is another significant opportunity.”
1. Tesla, Inc. (NASDAQ:TSLA)
Number of Hedge Fund Holders: 60
Weight as of September 27: 10.61%
Topping the list of Ark Invest’s top 10 stock picks is American electric vehicle manufacturer Tesla, Inc. (NASDAQ:TSLA). The diversified AI company is known for manufacturing and selling top-of-the-line self-driving electric vehicles. In addition, Tesla, Inc. (NASDAQ:TSLA) is also gaining momentum in its solar panel system and energy storage business.
In March 2021, ARK published research where the fund proposed a $3,000 price target for Tesla, Inc. (NASDAQ:TSLA). Meanwhile, Cathie Wood announced during a news briefing at the Morningstar Investment Conference on September 22 that she would most likely sell shares Tesla, Inc. (NASDAQ:TSLA) once it achieves her five-year target of $3,000 by the end of 2022, as reported by Bloomberg.
At the end of the second quarter of 2021, 60 hedge funds in the database of Insider Monkey held stakes worth $9.29 billion in Tesla, Inc. (NASDAQ:TSLA), down from 62 in the preceding quarter worth $10.0 billion.
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