This information is provided for illustrative purposes only. No representations and warranties are made as to the reasonableness of the assumptions. Certain assumptions have been made for modeling purposes and are unlikely to be realized. Changes in these assumptions may have a material impact on the backtested returns presented. General assumptions include: XYZ firm would have been able to purchase the securities recommended by the model and the markets were sufficiently liquid to permit all trading. Backtested results are calculated by the retroactive application of a model constructed on the basis of historical data and based on assumptions integral to the model which may or may not be testable and are subject to losses. The results reflect performance of a strategy not historically offered to investors and does not represent returns that any investor actually attained. Backtested performance is not an indicator of future actual results. Notably, the ARKK ETF is down 54.1% and the ARKW ETF is down nearly 55% so far this year.ĭisclaimer: The TipRanks Smart Score performance is based on backtested results. After turning in massive returns during the pandemic years, the ARK funds are down in 2022. Yet again, adding Zoom’s stock to the ARK line of funds and selling Nvidia just a day before earnings have surprised the market. Her solid belief in disruptive technology has won her both accolades and criticism. Ending ThoughtsĬathie Wood’s investment choices have often been questioned by the masses. Meanwhile, the stock has lost 42.8% so far this year.
The average Nvidia price forecast of $237.48 implies 37.9% upside potential to current levels. This is based on 24 Buys and seven Holds. On TipRanks, NVDA stock commands a Strong Buy consensus rating. Nvidia is not among the top ten holdings of the ARK line of funds. Remarkably, Cathie had bought 366,982 shares of Nvidia just two weeks before its earnings. Wood’s prediction for Nvidia came true as the stock fell on dismal Q3FY23 guidance that fell short of expectations. The ARKK fund sold NVDA stock worth $40 million and the ARKW fund sold NVDA stock worth $11 million. Wood’s ARK line of funds sold more than 293,661 shares of Nvidia on Tuesday, just a day ahead of its scheduled earnings. Taking advantage of this plunge, Wood added ZM stock to ARKK and ARKW ETFs. Moreover, the company’s lowered guidance fell short of analyst expectations, leading to a huge stock price fall of over 16%.
Zoom posted mixed Q2FY23 results, missing revenue estimates but beating adjusted earnings forecasts. Zoom takes the number two spot (7.77%) in ARKK holdings and the number three spot (7.05%) in the ARKW fund. Wood’s ARK Innovation ETF (ARKK) is by far the largest holder of ZM stock. Wood believes strongly in Zoom’s stock trajectory and has been consistently adding to its holdings. Despite the slowdown in demand for Zoom’s offerings post-pandemic, the company has managed to consistently exceed earnings expectations since 2020. And ARK Next Generation Internet ETF ( ARKW) bought 126,239 shares of ZM. Wood’s flagship fund, ARK Innovation ETF ( ARKK), bought 713,062 shares of Zoom. On the contrary, ahead of chipmaker Nvidia’s ( NVDA) results, Wood sold NVDA stock worth approximately $51 million. The expert hedge fund manager bought 839,301 shares of Zoom Video Communications ( ZM), valuing approximately $68.25 million. Cathie Wood, founder, and CEO of ARK Invest, surprised investors with her stock picks yet again.
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