🚀 Cathie Wood JUST Bought These Stocks for Each ARK Invest Fund

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ARK Invest's trading data for the month is in,
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which makes now a great time to look at what Cathie Wood has been buying
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to see if there are any interesting trends AND what stocks we should be researching next.
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Let's check out how ARK Invest's biggest positions have changed over the last month.
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Each row on this table is one stock. The rows are sorted by the size of ARK Invest's total
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position in that company if we combine all six of their actively managed funds,
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and each row is colored by the amount that Cathie Wood's position in that company has increased or
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decreased since the start of the month. One thing I always pay attention to is if ARK Invest's
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position moved because Cathie Wood bought or sold the stock, which is the percent change in shares
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shown in the first column, or if the share price itself changed, which is the percent change in
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dollars per share shown in the third column. For example, Cathie Wood's biggest position is Tesla,
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ticker symbol T S L A. She sold over 6% percent of her shares in Tesla over the month,
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but that's because Tesla's share price is up by almost 6% percent, so ARK Invest's total position
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in Tesla is still over $3.3 billion dollars. Instead of just reading this table to you,
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let me add value by highlighting a few big trends I'm seeing in their top 50 positions:
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Unity Software, UiPath, and Palantir are digitally-native software platforms that apply to
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a wide variety of industries. They each sit inside 4 or more of ARK Invest's funds because they're
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focused on process automation, which is useful in a lot of industries. These platforms focus on
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reducing the friction associated with programming via low-code, drag-and-drop interfaces,
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which allow skilled workers to become much more efficient with their time without having to learn
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coding languages that may not be a part of their existing skillset. That makes them very sticky,
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meaning once a company gets on these platforms, they become essential to that company's workflow
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and become very hard to replace. Even though all three stocks climbed in price by double
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digits due to great earnings calls, Cathie Wood loaded up on Palantir specifically,
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increasing ARK Invest's total shares in P L T R by almost 40% percent in a single month. There's
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a lot to talk about when it comes to Palantir, which is why I've covered it extensively over
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the last few weeks as it got added to every single ARK Invest fund. Here's a quick clip from Cathie
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Wood's recent Bloomberg Businessweek interview, explaining why she's so bullish on Palantir.
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Very broadly speaking, Palantir focuses on processing lots of data of all kinds to
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understand patterns and quickly identify anomalies that break those patterns. They got their start
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based on advanced financial fraud detection and prevention technologies that were being developed
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at Paypal. Speaking of which, let's look at Fintech next. Coinbase, Draftkings, and Robinhood
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all sit in the same 3 funds exactly: ARKK, ARKW, and ARKF. That's the pattern for companies that
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focus on frictionless value transfer of some kind. Coinbase, ticker symbol C O I N, is a centralized
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exchange that reduces the friction involved in buying cryptocurrencies. As the company continues
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to grow, we want to see them rely less and less on any one cryptocurrency. In their most recent
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earnings call, Coinbase showed that their revenue no longer heavily relies on just Bitcoin trading
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volume. For the first time, their revenue from Ethereum was bigger than revenues from Bitcoin
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and Coinbase's revenue from other cryptocurrencies accounted for 50% percent of their total.
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Draftkings, ticker symbol D K N G, is a sports betting platform that does a lot of cool things
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like generating custom bets in real-time based on what's going on in live sports events. They're
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currently acquiring Golden Nugget Online Gaming, ticker symbol G N O G, for $1.5 billion dollars
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and they're building an NFT-based collectibles marketplace for things like digital sports cards.
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Both of these things are going to show up on their balance sheet as sunk costs in the short
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term but will be extending their market penetration and total addressable market
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in the long term. Keep that in mind for their next earnings call later this fall.
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Robinhood, ticker symbol H O O D, is the innovative app-based stock and crypto broker that
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pioneered no-commission trading. There's little news of new initiatives since their IPO about
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one month ago but Gary Gensler, the SEC Chair, recently told Barrons that banning payment for
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order flow could be a possibility in the future. Payment for order flow is when a broker sells
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their clients' trade orders to be filled by other market makers. This is how Robinhood makes most
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of its money. In my last update on ARK Invest's positions, I specifically called this out as the
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reason I was surprised Cathie Wood invested so aggressively in it. This practice is not only
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controversial, but it also basically makes Robinhood a financial middleman, the exact
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type of company that ARK Invest typically bets against. Let me know in the comments below if
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I'm missing something big on Robinhood; I'm happy to adjust my outlook based on new information.
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One other stock I want to call out here is Signify Health, ticker symbol S G F Y,
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which Cathie Wood literally doubled down on over the last month. The surprise here is that Cathie
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Wood has this stock is in ARKG, ARK Invest's fund themed around the genomics revolution,
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but not ARKW or ARKF, the two funds that focus on value transfer and risk transformation, like
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the companies I just talked about. Signify Health is a platform that leverages advanced analytics,
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technology, and nationwide healthcare provider networks to create value-based payment programs
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and transform how care is paid for and delivered. Teladoc, ticker symbol T D O C,
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is ARK Invest's 2nd biggest position by a mile and is in ARKK, ARKG, ARKW,
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and ARKF for a lot of the same reasons, in my opinion. Maybe Signify Health will find itself
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moving up ARK's ranks as it gets added to ARKW and ARKF in the future. I'll be looking out for that.
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The last stock that moved way up into ARK Invest's Top 50
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is one that totally surprised me and isn't part of a bigger trend in their data at all.
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Cathie Wood increased her position in TuSimple by over 50% percent when it dipped earlier this
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month, and then it skyrocketed almost immediately after, so ARK Invest has already made a lot of
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money on this stock. TuSimple is software company focused on autonomous trucking. They have plans
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to expand into China, so there were fears about that since software companies are under a lot of
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scrutiny from the Chinese government right now. However, because TuSimple is primarily focused on
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logistics and doesn't collect sensitive user data, it's the kind of company the CCP views favorably,
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meaning TuSimple's plans for expansion didn't just get wrecked like some other companies. But Cathie
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Wood didn't invest in TuSimple just because they want to expand into China. Here's a quick clip
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from that same interview, where she talks about TuSimple and the future of autonomous freight:
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So, Cathie Wood believes that the cost to transport one ton of goods one mile via
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autonomous trucks will drop to 3 cents and, as a result, up to half of the freight rail industry
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could shift over to autonomous trucks in the future. I'm very interested to see the overlap
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between TuSimple's autonomous trucking solutions and the Tesla Semi over the next few years.
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I don't typically cover Cathie Wood's smaller positions because they can shift
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pretty quick and ARK Invest doesn't publish too much research about them,
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but I get a lot of comments asking me to highlight the biggest buys among their
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lower-ranking positions anyway. So, let me sort this table by the increase in share count instead.
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I already talked about Signify, TuSimple, and Palantir,
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so the other noteworthy stocks on this list are:
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MarkForged, ticker symbol M K F G
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Semafour, ticker symbol S M F R
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Adyen, ticker symbol A D Y E Y,
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Etsy, E T S Y,
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Pinduoduo, P D D,
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Atlas Crest Investment, A C I C
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and Aerovironment, ticker symbol A V A V.
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Just keep in mind that those stocks aren't anywhere near ARK Invest's top
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fifty positions and half of them aren't even in ARK Invest's top
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one hundred, so these huge jumps in share count are still very small purchases overall.
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Comment below with your thoughts on ARK Invest's position changes over
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the last month. Are there any stocks you're particularly excited about or surprised by?
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Did I mention any companies you've never heard of or have been considering investing in for a long
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time? Do you like this kind of monthly overview? I'm excited to hear your thoughts. Either way,
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I hope this episode helped highlight some of the trends Cathie Wood invested in over the
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last month, including process automation software, digitally-native services focused on frictionless
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value transfer and risk transformation, and even autonomous trucking. If it did,
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let me know by investing in the like button and subscribing to the channel
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with all notifications turned on. That's a great way to invest in the channel that invests in you.
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Until next time, this is ticker symbol you, my name is alex, reminding you
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that the best investment you can make is in you.