12 Best ARK Stocks To Buy Now

In this article, we discuss the 12 best ARK stocks to buy now.

Founder and boss at ARK Investment Management, Cathie Wood has had a difficult start to the year. Last time the global markets faced upheaval during 2020, Wood came out as one of the best performing hedge fund managers and returned 170% in the year. This time around, the negative markers are less unique than a pandemic, with sky-high inflation, rising interest rates, and geopolitical tensions turning investors away from risky, growth stocks. Her flagship ARK Innovation ETF (NYSE:ARKK) has fallen by more than 53% since the start of the year, and her portfolio size has shrunk from $33.08 billion at the end of December 2021 to $23.95 billion at the end of Q1 2022.

Even while the market sends her stock picks tumbling down, Cathie Wood is doubling up on her bets, stating that these innovative companies are trading in ‘deep value territory’. Coinbase Global, Inc. (NASDAQ:COIN) is down 70% since the start of the year amid collapsing cryptocurrency prices, but Wood recently increased her stake in the crypto platform by 29%. This goes to show that Wood is not giving up on her vision for the future of tech, and this self-belief is continuing to attract investors to her fund. It has recorded inflows of approximately $1.3 billion so far in 2022, and also recently posted four consecutive weeks of positive inflows, including $455.7 million in the week ending May 4.

Cathie Wood of ARK Investment Management

Let’s now take a look at the top stocks to buy according to Cathie Wood’s ARK Investment Management. Some of her top stock picks include Tesla, Inc. (NASDAQ:TSLA), Teladoc Health, Inc (NYSE:TDOC), and Roblox Corporation (NYSE:RBLX), along with others mentioned below.

Our Methodology

The following stocks have been picked according to the Q1 2022 portfolio of Cathie Wood’s ARK Investment Management. These are the top 12 holdings of the fund as of the end of the first quarter.

Best ARK Stocks To Buy Now

12. Intellia Therapeutics, Inc. (NASDAQ:NTLA)

ARK Investment Management’s 13 Portfolio: 2.72%

ARK Investment Management’s Stake Value: $652.65 million

Number of Hedge Fund Holders: 35

Intellia Therapeutics, Inc. (NASDAQ:NTLA) is a genome-editing company which develops therapeutics that can edit disease-associated genes in the human body. According to 13F filings for the first quarter, ARK Investment Management owned 8.98 million shares of Intellia Therapeutics, Inc. (NASDAQ:NTLA) at a value of $652.7 million, representing 2.72% of its total portfolio.

Investors were seen buying up on Intellia Therapeutics, Inc. (NASDAQ:NTLA) shares. At the end of March, 35 hedge funds reported ownership of stakes in the company, up from 31 a quarter earlier.

Oppenheimer analyst Jay Olson in early May kept an ‘Outperform’ rating on Intellia Therapeutics, Inc. (NASDAQ:NTLA) shares, and cut the price target to $130 from $160. Olson sees the firm’s emerging profile of drugs as encouraging, and believes it supports curative potential.

For Q1 2022, Intellia Therapeutics, Inc. (NASDAQ:NTLA) disclosed earnings per share of -$1.96, which missed consensus estimates by $0.85. Quarterly revenue stood at $11.3 million, exceeding analysts’ forecasts by $2.7 million, and signalling an increase of 74.58% from the year-ago quarter.

Investment firm Carillon Tower Advisers discussed Intellia Therapeutics, Inc. (NASDAQ:NTLA) in its Q2 2021 investor letter, stating:

“Intellia Therapeutics is a clinical-stage genome editing company focused on the development of proprietary, potentially curative therapeutics. The company’s stock soared after announcing positive interim data from an ongoing phase 1 clinical study of its in vivo gene editing candidate, which is being developed as a single-dose treatment for hereditary transthyretin (ATTR) amyloidosis. This specific form of therapy would be the first of its kind resulting in the precision editing of a gene in a target tissue in the human body.”

Along with Tesla, Inc. (NASDAQ:TSLA), Teladoc Health, Inc (NYSE:TDOC), and Coinbase Global, Inc. (NASDAQ:COIN), Intellia Therapeutics, Inc. (NASDAQ:NTLA) is a prominent stock in the portfolio of disruptive tech investor Cathie Wood.

11. Spotify Technology S.A. (NYSE:SPOT)

ARK Investment Management’s 13 Portfolio: 2.76%

ARK Investment Management’s Stake Value: $662.72 million

Number of Hedge Fund Holders: 49

Spotify Technology S.A. (NYSE:SPOT) operates the world’s largest audio streaming platform with over 406 million monthly active users and 180 million premium subscribers. Wood owned 4.38 million shares of Spotify at the end of Q1 2022, up 10% from the quarter before where she held 4.01 million shares of the company.

On April 29, Citi analyst Jason Bazinet maintained a ‘Buy’ rating on Spotify Technology S.A. (NYSE:SPOT) shares, and decreased the price target to $165 from $240. At current price levels, Bazinet feels that the market isn’t sufficiently valuing Spotify’s emerging businesses and the potential for future growth in its paid music streaming business.

For the quarter ending March, Spotify Technology S.A. (NYSE:SPOT) disclosed an EPS of $0.22, above estimates by $0.45. The company raked in $2.81 billion in revenue for the first quarter, exceeding expectations by $28.1 million.

The Q1 database of Insider Monkey showed that 49 hedge funds were shareholders of Spotify Technology S.A. (NYSE:SPOT) with combined positions worth $1.9 billion. In contrast, 53 hedge funds owned $3.46 billion worth of stakes in the preceding quarter.

Here is what Rowan Street Capital LLC, an investment firm, had to say about Spotify Technology S.A. (NYSE:SPOT) in its Q1 2022 investor letter:

“Let’s run through our top holdings in order to visualize what happened to their stocks in relation to the fundamentals of their underlying businesses:

We have owned Spotify (NYSE:SPOT) stock since its IPO year in 2018, and this company continued to be one of our highest long-term convictions despite the recent drawdown in the stock. We had outlined our investment thesis for SPOT in our H1 2021 Letter and in Q2 2020 Letter (we encourage you to review those). We believe there is great future for this company beyond what you can see and hear today!”

10. UiPath Inc. (NYSE:PATH)

ARK Investment Management’s 13 Portfolio: 3.02%

ARK Investment Management’s Stake Value: $725.44 million

Number of Hedge Fund Holders: 33

UiPath Inc. (NYSE:PATH) operates a software platform which automates business processes, serving clients in the healthcare, telecommunication, finance, and banking industries around the world. ARK Investment Management, according to its Q1 portfolio, owned 33.6 million shares of the firm at a price tag of roughly $725 million, amounting to a 3.02% slice of its total portfolio.

On May 28, Cowen analyst Bryan Bergin lowered the firm’s price target on UiPath Inc. (NYSE:PATH) to $27 from $43 and kept an ‘Outperform’ rating on the company shares. The analyst reaffirmed his revenue growth, margin and ARR (annual recurring revenue) forecasts for the firm, but revised the price target owing to sector multiple compression.

9. Unity Software Inc. (NYSE:U)

ARK Investment Management’s 13 Portfolio: 3.41% 

ARK Investment Management’s Stake Value (As of the end of Q1): $817.90 million

Number of Hedge Fund Holders: 39

Unity Software Inc. (NYSE:U) is a video game software developer based in California. At the close of Q1 2022, Cathie Wood’s stake in the company amounted to 3.41% of her total portfolio, and was worth roughly $818 million. In total, 39 hedge funds were long on Unity Software Inc. (NYSE:U) shares at the end of March, up from 36 hedge funds in the quarter before.

For the first quarter, Unity Software Inc. (NYSE:U) reported EPS figures in-line with estimates, coming in at -$0.08. Its revenue for the quarter was registered at $320.1 million, underperforming analysts’ forecasts by $1.02 million, but showing a 36.4% jump from the year-ago quarter.

On May 11, Wedbush analyst Michael Pachter reiterated an ‘Outperform’ rating on Unity Software Inc. (NYSE:U) shares, and slashed the price target to $70 from $125. He noted that the shares slumped after temporary data engineering issues in its tech stack resulted in losses during the first quarter, forcing the company to negatively revise its 2022 guidance. However, Pachter believes the firm will resolve this issue by the end of the year, and regain its trajectory of 30% or higher growth in annual revenue.

Investment firm ClearBridge Investments talked about Unity Software Inc. (NYSE:U) and its prospects in a Q1 2022 letter to investors. The fund said:

“We took advantage of a correction in higher-multiple stocks early in the first quarter to purchase shares of Unity Software (NYSE:U), a leading platform to create, run and monetize 3D content. With about 1.6 million monthly active creators versus roughly 15 million potential content creators in gaming alone, we believe the company’s Create Engine is still underpenetrated relative to its core addressable market. We similarly see a long runway for growth in Unity’s Operate Solutions segment given its advertising network commands single-digit share of the $60 billion mobile app install ad market today. Furthermore, we believe Unity is well-positioned to expand its addressable market to include industries beyond gaming, on both the operate and create sides of their business (Exhibit 1). The company is not yet free cash flow positive but given strong net expansion rates and high gross margins, we see a path to improving profitability over time, with management notably targeting positive free cash flow this fiscal year.

8. Twilio Inc. (NYSE:TWLO)

ARK Investment Management’s 13 Portfolio: 3.45% 

ARK Investment Management’s Stake Value: $827.55 million

Number of Hedge Fund Holders: 75

Twilio Inc. (NYSE:TWLO) operates a cloud communications platform which enables customers to build customer engagement tools within software. Wood held 5.02 million shares of the firm priced at roughly $827.6 million, representing 3.45% of her total Q1 2022 portfolio.

A detailed review of the 900+ elite hedge funds in the database of Insider Monkey found that 75 hedge funds were long Twilio Inc. (NYSE:TWLO) at the end of Q1 2022. The aggregate value of these positions was recorded at $3.25 billion. In comparison, 80 hedge funds held stakes in the company at the end of the fourth quarter.

On May 23, Jefferies analyst Samad Samana lowered the firm’s price target on Twilio Inc. (NYSE:TWLO) to $130 from $175, and maintained a ‘Buy’ rating on the company shares. The analyst revised the price target for several software companies in his coverage on account of the current volatility in the macro backdrop.

For the first quarter, Twilio Inc.’s (NYSE:TWLO) EPS outperformed estimates by $0.21. The company’s quarterly revenue increased 48.37% year-on-year, coming in at $875.4 million which was above forecasts by $11.6 million.

Investment firm RiverPark Funds discussed the performance and prospects of Twilio Inc. (NYSE:TWLO) in its Q4 2021 investor letter. Here’s what the fund said:

“Twilio: TWLO shares were also down sharply to end the year. Just like after 1Q and 2Q, despite another quarterly beat in 3Q, management guidance–which we believe to be conservative– disappointed some investors. Third quarter revenue of $740 million was up 65% year over year, significantly exceeding management’s guidance of 50%-52% revenue growth. Management guided 4Q21 revenue to +40% revenue growth, which was ahead of sell side expectations, but likely below buy side expectations. Investors were also troubled by the departure of COO George Hu, who has been credited with rebuilding Twilio’s sales and marketing teams after arriving from SaleForce.com shortly after the company’s IPO in 2016.

The COVID crisis has accelerated the adoption of the company’s cloud-based, integrated communications platform that allows companies in a wide range of businesses to embed digital communications capabilities (video, chat, voice, SMS, fax, and email) into their customer facing applications without needing to build back-end infrastructure and interfaces. Twilio’s total addressable market is now greater than $40 billion, which should grow by 50% over the next few years, providing a strong secular tailwind for the company. We expect the company’s gross margin to continue to expand from 54% in the second quarter toward management’s long-term goal of 60%-65%, and, as the company grows to scale, we expect its non-GAAP operating margin to expand to 25%.”

7. Zoom Video Communications, Inc. (NASDAQ:ZM)

ARK Investment Management’s 13 Portfolio: 4.11%

ARK Investment Management’s Stake Value: $986.39 million

Number of Hedge Fund Holders: 43

Zoom Video Communications, Inc. (NASDAQ:ZM) operates a video communications platform. It was Cathie Wood’s star performer during the Covid pandemic, rising more than 405% in 2020. It lost steam as the world re-opened after the Covid lockdowns, but Cathie Wood still maintains a long-term bullish view on the company shares. She increased her stake in Zoom Video Communications, Inc. (NASDAQ:ZM) by 23% during the first quarter, owning 8.41 million shares valued at $986 million.

Its revenue for the first quarter stood at $1.07 billion, above market estimates by roughly $526,000. Zoom Video Communications, Inc. (NASDAQ:ZM) posted earnings per share of $1.03 for Q1 2022, outperforming consensus estimates by $0.16.

On May 24, Morgan Stanley analyst Meta Marshall noted that sentiment on Zoom Video Communications, Inc. (NASDAQ:ZM) was “overwhelmingly negative” after its Q1 report. The analyst feels the market is overlooking the company’s attractive business model, and the fact that video demand continues to prove durable. She feels that the company “rebutted concerns” with its latest quarterly earnings, and gave the stock an ‘Overweight’ rating with a $140 price target.

43 hedge funds reported bullish bets on Zoom Video Communications, Inc. (NASDAQ:ZM) at the close of Q1 2022, as compared to 48 hedge funds in the previous quarter. The total value of Q1 holdings stood at $3.16 billion.

6. EXACT Sciences Corporation (NASDAQ:EXAS)

ARK Investment Management’s 13 Portfolio: 4.18%

ARK Investment Management’s Stake Value: $1.00 billion

Number of Hedge Fund Holders: 32

EXACT Sciences Corporation (NASDAQ:EXAS) is a biotech firm which provides cancer screening and diagnostic test products in the United States and around the globe. Cathie Wood’s ARK Investment Management was the largest Q1 shareholder of the firm, with a $1 billion stake which consisted of 14.32 million shares.

Baird analyst Catherine Ramsay Schulte in late April gave EXACT Sciences Corporation (NASDAQ:EXAS) an ‘Outperform’ rating, and cut the price target to $90 from $100. The analyst feels the company’s core business is well-positioned in the market, and advances in its multi-cancer program could potentially drive shares meaningfully higher over the next 12 months.

The company’s EPS figures for the first quarter missed estimates by $0.14. EXACT Sciences Corporation (NASDAQ:EXAS) recorded a revenue of $486.6 million for the quarter, outperforming estimates by $26.7 million.

32 hedge funds held combined positions worth $1.53 billion in EXACT Sciences Corporation (NASDAQ:EXAS) at the end of March. This is down from 34 hedge funds a quarter ago.

Here is what RiverPark Funds, an investment firm, had to say about EXACT Sciences Corporation (NASDAQ:EXAS) in its Q4 2021 investor letter:

“Exact Sciences: EXAS shares declined on a disappointing recovery in Cologuard screening due to COVID. Despite continued revenue growth from Precision Oncology and COVID testing, and Cologuard screening revenue growth of 30%, COVID restrictions limited access to physicians’ offices for the company’s and its Pfizer Joint Venture sales force as well as causing a severe drop off of in-person wellness visits.

In the last year, Exact has also pivoted the company significantly from its single cancer screening tests (Cologuard for colon cancer and Oncotype for breast cancer) to multi-cancer screening through its Thrive acquisition, and to minimal residual disease and recurrence monitoring through its Ashion and Tardis acquisitions. Through this pivot, Exact has tripled its market opportunity from $20 billion to $60 billion.”

In addition to Tesla, Inc. (NASDAQ:TSLA), Teladoc Health, Inc (NYSE:TDOC), and Coinbase Global, Inc. (NASDAQ:COIN), EXACT Sciences Corporation (NASDAQ:EXAS) is a popular stock among hedge funds in 2022.

5. Roku, Inc. (NASDAQ:ROKU)

ARK Investment Management’s 13 Portfolio: 4.32%

ARK Investment Management’s Stake Value: $1.03 billion

Number of Hedge Fund Holders: 34

Up next in the portfolio of Cathie Wood is Roku, Inc. (NASDAQ:ROKU). The California-based company provides smart TV software which allows users to access multiple content sources within a single platform. ARK Investment Management, according to its Q1 portfolio, held 8.27 million Roku shares valued at $1.03 billion, making it the most prominent shareholder of the firm. In total, 34 hedge funds were long Roku, Inc. (NASDAQ:ROKU) at the end of March, down from 43 a quarter ago.

On April 28, Roku, Inc. (NASDAQ:ROKU) reported its Q1 earnings and posted an EPS of -$0.19, above analysts’ estimates by $0.02. The company pulled in $733.7 million in revenue for the quarter, which exceeded market forecasts by $15.1 million and also signalled year-on-year growth of 27.8%.

Citi analyst Jason Bazinet on May 3 maintained a ‘Buy’ rating on Roku, Inc. (NASDAQ:ROKU) shares and slashed the price target to $175 from $225. He sees the market as less bullish on streaming companies after Netflix reported subscriber loss for the first time in a decade, but thinks Roku, Inc. (NASDAQ:ROKU) is well-positioned to benefit from the secular trend of ad money moving from linear to connected TVs.

Here is what investment firm RGA Investment Advisors had to say about Roku, Inc. (NASDAQ:ROKU) in its Q4 2021 investor letter:

“Since we bought Roku, no stock has contributed more to our returns and no stock has been more volatile in our portfolio. This is now our third drawdown in the stock of over 30% and our second of over 60%. Fortunately (or tactically) before the two 60% drawdowns we had trimmed our positions by at least a third, though unfortunately that meant we still held large slices of the stock on the way down. Despite the stock having soared too far, too fast and thinking it was due for a period of digestion, we believe over our timeframe even the former highs will be rewarded with a good result. We have often pointed out that volatility in companies like Roku is the market’s way of grappling with a really wide range of potential outcomes and that remains as true today as ever, though the range of outcomes continues to narrow for the better for Roku.

Roku today is trading at lower multiples than at any point as a public company, meanwhile its revenue and margin composition has evolved from majority hardware to vast majority platform– in other words, each $1 of revenue is much more valuable today than ever before for Roku. Roku today is a profitable company for the first time in its history. Roku today has a multitude of investment opportunities within its own platform that can drive considerable value. Early in 2021 at higher prices, one had to believe the company would grow accounts internationally to justify valuations. This was so, because the company has so quickly achieved substantial penetration of the US market with 56.4m reported household customers of the ~130m total US households, that further growth in the US household count will be challenging and because prices were so high. Today, one merely needs to believe that with around 60 million households (the expectation for the yet reported year-end 2021 number), ARPU has a strong enough growth tailwind to reach $100 within a reasonable time, without relying on any incremental account growth. For context, as of Q3 this year, ARPU was $40, up 49% year-over-year and we know it will be higher in Q4. Growth in ARPU is underpinned by the continuing migration of viewer hours to CTV. The subforces behind this are increasing the penetration of Roku devices within households (go from one Roku to TV to 2-4), increasing the hours that each house watches (getting from shy of 4 hours to the nearly 8 hours an average American household watches TV) and broadening the content on the platform, increasing the share of inventory with content companies and more hours (like live sports viewing) shifting from linear to CTV. We further believe the opportunity to become the bundler and/or hub of household content subscriptions is growing, as evidenced by the rise in credit card pings per user from 1 to 1.3 per month and its continuing ascension. In this respect, Roku has the right to win with their installed base, because the experience is exponentially better than legacy and competing offerings…” (Click here to see the full text)

4. Block, Inc. (NYSE:SQ)

ARK Investment Management’s 13 Portfolio: 4.7%

ARK Investment Management’s Stake Value: $1.12 billion

Number of Hedge Fund Holders: 84

Block, Inc. (NYSE:SQ) provides fintech services through its subsidiaries: Cash App, TIDAL, Square and Spiral. At the end of the first quarter, 84 hedge funds reported ownership of stakes in the company, as compared to 96 hedge funds in the previous quarter. Wood’s ARK Investment Management was the firm’s largest Q1 shareholder, with a $1.12 billion stake.

On May 23, Truist analyst Andrew Jeffrey maintained a ‘Buy’ rating on Block, Inc. (NYSE:SQ) shares, and lowered the price target to $145 from $165. The analyst feels Block can become one of the globe’s leading fintech firms, giving competition to big names such as Visa (NYSE:V). He sees an attractive buying opportunity for long-term investors, given that the market has a poor understanding of the company’s business fundamentals.

Investment firm Farrer Wealth Advisors talked about Block, Inc. (NYSE:SQ) in its Q1 2022 investor letter. The fund said:

“Block (formerly Square): We ‘adopted’ Block’s stock after the company bought Afterpay, which we were investors in. We had been trimming the Afterpay position throughout 2021 and trimmed again after the acquisition, so the position was quite small. We held onto that small portion, as we did think the acquisition made sense and were excited to see the two companies integrate and for Block to create a closed loop network between merchants and consumers. However, the market punished most highly valued tech stocks over the last months, and we saw the position move against us by over 50%. We are firm believers that when a stock goes against you by 50%+, you need to do something about it. Either trim/sell and reinvest or buy more. In the case of Block, the original reason for holding was to see how the acquisition and integration with Afterpay panned out. The market did not give us the time to see this play out, thus we were not comfortable adding more to the position. Further for the stock to recover to our purchase price, we felt the company’s valuation would need to command a future exit multiple that the market would be unlikely to pay in this environment. Given this, we exited the remainder of the position.”

3. Coinbase Global, Inc. (NASDAQ:COIN)

ARK Investment Management’s 13 Portfolio: 5.53% 

ARK Investment Management’s Stake Value: $1.32 billion

Number of Hedge Fund Holders: 46

Coinbase Global, Inc. (NASDAQ:COIN) ranks among the world’s leading cryptocurrency trading platforms. Disruptive tech investor Cathie Wood is long-term bullish on cryptocurrency as a whole, and increased her stake in Coinbase Global, Inc. (NASDAQ:COIN) by 29% in the first quarter of 2022, making her the firm’s largest shareholder with a $1.32 billion position.

Coinbase Global, Inc. (NASDAQ:COIN) reported below expectations results for the first quarter, as cryptocurrency prices experienced a colossal drop in recent months. Its EPS came in below estimates by $2.17, while quarterly revenue also missed forecasts by roughly $310 million.

Cowen analyst Stephen Glagola on May 26 initiated coverage of Coinbase Global, Inc. (NASDAQ:COIN) with an ‘Outperform’ rating and a price target of $85, noting that the company was “built to last.” He believes it can grow at a double-digit compound annual growth rate (CAGR) for “the foreseeable future”, and holds that its regulatory adherence and security infrastructure provide a structural advantage over global competitors.

Out of the 900+ elite hedge funds tracked by Insider Monkey, Coinbase Global, Inc. (NASDAQ:COIN) shares were held by 46 hedge funds at the close of the first quarter. This shows a negative trend from the quarter before where 57 hedge funds were shareholders of the cryptocurrency platform.

Longleaf Partners Fund, an investment firm, mentioned Coinbase Global, Inc. (NASDAQ:COIN) in its Q4 2021 investor letter. It 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 is a prime example.”

2. Teladoc Health, Inc (NYSE:TDOC)

ARK Investment Management’s 13 Portfolio: 5.86% 

ARK Investment Management’s Stake Value: $1.40 billion

Number of Hedge Fund Holders: 36

Teladoc Health, Inc (NYSE:TDOC) provides virtual healthcare services in the United States. It ranks as ARK Investment Management’s second largest holding, representing 5.86% of its total portfolio with a $1.4 billion stake.

36 hedge funds held positions worth $1.96 billion in Teladoc Health, Inc (NYSE:TDOC) at the end of Q1 2022. This is in comparison to 39 hedge funds with $2.45 billion worth of stakes in the company a quarter ago.

Oppenheimer analyst Michael Wiederhorn noted on May 26 that he continues to favor Teladoc Health, Inc (NYSE:TDOC) in the telehealth segment as a high risk/reward opportunity, and believes recent government policies will promote usage of telehealth in the long term. A bipartisan group of US senators have recently introduced legislation that would remove Medicare’s requirement for in-person visits before telehealth visits for mental services, a move that will boost the telehealth industry and improve transparency.

Investment firm RiverPark Funds talked about the market position of Teladoc Health, Inc. (NYSE:TDOC) in its Q1 2022 investor letter, stating:

“Teladoc is the largest telehealth provider in the US and has recently begun to expand internationally. TDOC’s platform enables an ever-expanding list of patient-doctor interactions (including those for primary health care, mental health issues and chronic condition management) to transition from an on-site visit to one that can be done remotely with full video- based interaction. TDOC provides its platform of services on both a business-to-business and direct-to-consumer basis, through monthly subscription-based relationships. For its core business-to-business clients, the company contracts with a wide range of entities, including large scale employers (the company currently contracts with over 50% of the Fortune 500), health plans, health systems, and medical insurance companies, which currently cover more than 50 million members. For these customers, the company provides a win-win-win, as patients spend no time traveling and less time waiting, doctors are more efficient seeing more patients in less time, and payers (employers and plan sponsors) save money while being able to offer a highly popular additional benefit for their employees. This B to B market is projected to be a +$100 billion market opportunity and TDOC is the clear global market leader. For its direct-to- consumer clients, the company provides a growing suite of services for individuals to have affordable access to on-demand and scheduled medical services, for which their current insurance does not provide reimbursement (such as extended mental health counseling).

Although the company has been growing steadily for well over a decade, the business has transformed over the past few years as the COVID pandemic caused a significant increase in the demand for virtual healthcare. In addition, the company’s 2020 acquisitions of Livongo, the leader in virtual chronic condition management, and InTouch a competitive telehealth platform, materially broadened the company’s product offerings. At its recent analyst day, management guided to 25-30% top line growth for each of the next three years, exiting 2024 with more than $4 billion in annual revenue. The company also anticipates expanding margins by 100-150 basis points per year in each of the next three years, while still accelerating its investments in marketing and R&D. As with many of our recent purchases, we took advantage of the decline in the company’s shares (down a breathtaking 70% from its 2021 high of almost $300 per share) to establish a small position in Teladoc.”

1. Tesla, Inc. (NASDAQ:TSLA)

ARK Investment Management’s 13 Portfolio: 7.17% 

ARK Investment Management’s Stake Value: $1.71 billion

Number of Hedge Fund Holders: 80

Tesla, Inc. (NASDAQ:TSLA) makes and sells electric vehicles and battery storage solutions in the United States, China, Germany and around the world. The company has been a long-term holding of Cathie Wood, who stands as one of the earliest investors in the now $786 billion company.

80 hedge funds from the database of Insider Monkey reported bullish bets on Tesla, Inc. (NASDAQ:TSLA) at the close of Q1 2022, with aggregate holdings worth $11.28 billion. This shows a negative trend from the preceding quarter where 91 hedge funds were stakeholders in the EV maker. The stock has lost 36.69% in the year to date as of May 27, on the back of supply chain issues in its key market of China, and nervous market sentiment around founder Elon Musk’s $44 billion bid to buy Twitter.

On May 24, Daiwa analyst Jairam Nathan maintained an ‘Outperform’ rating on Tesla, Inc. (NASDAQ:TSLA) shares, and lowered the price target to $800 from $1,150. The company’s revenue for the first quarter stood at $18.76 billion, signaling strong growth of 80.54% over the same period last year, and beating market estimates by $917.8 million. EPS also came in above analysts’ forecasts by $0.95.

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