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