In this article, we discuss Cathie Wood’s latest thoughts on inflation and her 5 worst-performing stock picks. If you want to read about some more stocks in the Wood portfolio, go directly to Cathie Wood’s Latest Thoughts on Inflation and Her 10 Worst-Performing Stock Picks.
5. Roblox Corporation (NYSE:RBLX)
Number of Hedge Fund Holders: 40
Loss in Share Price Year-to-Date as of June 30: 65.57%
Roblox Corporation (NYSE:RBLX) owns and runs an online entertainment platform. Regulatory filings reveal that ARK owned over 6 million shares of Roblox Corporation (NYSE:RBLX) at the end of March 2022 worth $281 million, representing 1.17% of the total portfolio. On June 15, the company reported a more than 17% year-on-year rise in daily active users for the month of May, sending the shares surging more than 7%. The revenue during the month also grew by around 30% compared to May 2021.
On June 17, Truist analyst Matthew Thornton downgraded Roblox Corporation (NYSE:RBLX) stock to Hold from Buy and lowered the price target to $29 from $36, noting the firm screened “least favorably” among the digital entertainment group on revision trends and valuation.
At the end of the first quarter of 2022, 40 hedge funds in the database of Insider Monkey held stakes worth $1.7 billion in Roblox Corporation (NYSE:RBLX), compared to 61 in the previous quarter worth $4 billion.
In its Q4 2021 investor letter, Tao Value, an asset management firm, highlighted a few stocks and Roblox Corporation (NYSE:RBLX) was one of them. Here is what the fund said:
“Roblox Corporation (NYSE:RBLX) got significant more attention from both institutional & retail investors after Facebook announced to rename itself as Meta Platforms. I believe the price appreciation is largely attributed to the increased attention. On business side, Roblox Corporation (NYSE:RBLX) rolled out a few successful music events and also partnered with Netflix on testing long-form media consumption in virtual world. Apple in its iOS 14.5 rolled out an impactful change for digital advertising landscape by requiring all apps to ask users to “opt in”.
4. Sea Limited (NYSE:SE)
Number of Hedge Fund Holders: 77
Loss in Share Price Year-to-Date as of June 30: 69.15%
Sea Limited (NYSE:SE) is a diversified technology company. Latest data shows that ARK owned close to 2.6 million shares of Sea Limited (NYSE:SE) at the end of March 2022 worth $315 million, representing 1.31% of the total portfolio. In mid-May, the firm posted earnings for the first quarter of 2022, reporting a revenue of $2.9 billion, up over 61% compared to the revenue over the same period last year and beating analyst expectations by $40 million. The total gross profit in the quarter was $1.2 billion, up 81% year-on-year.
On May 19, Barclays analyst Jiong Shao maintained an Overweight rating on Sea Limited (NYSE:SE) stock and lowered the price target to $157 from $201, noting that the firm was delivering despite reopening headwinds in Southeast Asia and tough competition.
At the end of the first quarter of 2022, 77 hedge funds in the database of Insider Monkey held stakes worth $5 billion in Sea Limited (NYSE:SE), compared to 108 in the previous quarter worth $10 billion.
In its Q1 2022 investor letter, Baron Funds, an asset management firm, highlighted a few stocks and Sea Limited (NYSE:SE) was one of them. Here is what the fund said:
“Sea Limited (NYSE:SE), a global digital gaming and e-commerce company, detracted from performance for the period held. Similar to other online consumer businesses, Sea Limited (NYSE:SE) faced significant multiple compression in the quarter, exacerbated by a slowdown in user growth at its key Free Fire digital game and mounting investments in its e-commerce operation, particularly in new markets like Brazil. We exited our position as we lost confidence in the long- term unit economics in some of Sea’s new markets and were concerned by the simultaneous slowdown in revenue growth and increase in underlying cash burn.”
3. Berkeley Lights, Inc. (NASDAQ:BLI)
Number of Hedge Fund Holders: 16
Loss in Share Price Year-to-Date as of June 30: 74.92%
Berkeley Lights, Inc. (NASDAQ:BLI) is a digital cell biology company. Regulatory filings reveal that ARK owned over 8.3 million shares of Berkeley Lights, Inc. (NASDAQ:BLI) at the end of March 2022 worth $59 million, representing 0.24% of the total portfolio. On June 6, contract development firm Curia announced that it would adopt the Beacon Optofluidic system offered by Berkeley to “accelerate antibody-based drug discovery capabilities”. Curia will be able to deliver antibody sequences with data analysis within weeks through the adoption.
On May 9, Berkeley Lights, Inc. (NASDAQ:BLI) posted earnings for the first quarter of 2022, missing market estimates on earnings per share by $0.01. The revenue over the period was $20 million, roughly in line with market expectations.
Among the hedge funds being tracked by Insider Monkey, New York-based investment firm Two Sigma Advisors is a leading shareholder in Berkeley Lights, Inc. (NASDAQ:BLI), with 1 million shares worth more than $7.8 million.
2. Coinbase Global, Inc. (NASDAQ:COIN)
Number of Hedge Fund Holders: 46
Loss in Share Price Year-to-Date as of June 30: 80.18%
Coinbase Global, Inc. (NASDAQ:COIN) owns and runs a cryptocurrency exchange platform. The hedge fund chaired by Wood owned close to 6.9 million shares of Coinbase Global, Inc. (NASDAQ:COIN) at the end of March 2022, worth $1.3 billion. On June 24, the firm announced that it would be rolling out nano bitcoin futures. The move is seen as part of a larger plan by the firm to attract more retail traders to the platform amid a large drop in the prices of crypto assets in the past few weeks.
On June 27, Goldman Sachs analyst Will Nance downgraded Coinbase Global, Inc. (NASDAQ:COIN) stock to Sell from Neutral and lowered the price target to $45 from $70, noting that crypto asset levels and trading volumes imply further degradation in revenue for the firm.
Among the hedge funds being tracked by Insider Monkey, New York-based firm Renaissance Technologies is a leading shareholder in Coinbase Global, Inc. (NASDAQ:COIN), with 1 million shares worth more than $199 million.
In its Q4 2021 investor letter, Longleaf Partners Fund, an asset management firm, highlighted a few stocks and Coinbase Global, Inc. (NASDAQ:COIN) was one of them. Here is what the fund said:
“We also have seen plenty of IPO/SPAC craziness showing both that private players need public markets more than they admit and that there is more volatility embedded in these newer companies than a private quarterly mark might admit. As for how efficient both the private and public markets are, we would encourage you to really delve into some of those multi-hundred-page S1s for many of the newest public companies to see the huge gap between the last valuation at which the company was funded and/or granted shares to its executives and the often much higher price at which the company went public – Coinbase Global, Inc. (NASDAQ:COIN) is a prime example.”
1. Invitae Corporation (NYSE:NVTA)
Number of Hedge Fund Holders: 29
Loss in Share Price Year-to-Date as of June 30: 83.71%
Invitae Corporation (NYSE:NVTA) operates as a medical genetics firm. Latest data shows that ARK owned close to 27 million shares of Invitae Corporation (NYSE:NVTA) at the end of March 2022 worth $220 million, representing 0.92% of the total portfolio. In earnings results for the first quarter of 2022, posted in early May, the firm reported that net losses had widened 66% due to a rise in research and development, marketing, and sales costs. The firm said it will reduce cash burn in 2022 to extend the cash runway to 2023.
On June 13, Benchmark analyst Bruce Jackson maintained a Buy rating on Invitae Corporation (NYSE:NVTA) stock and lowered the price target to $6 from $13. The analyst also slashed the revenue expectations for the firm in 2022.
At the end of the first quarter of 2022, 29 hedge funds in the database of Insider Monkey held stakes worth $545 million in Invitae Corporation (NYSE:NVTA), compared to 24 in the preceding quarter worth $958 million.
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