5 Best ARK Stocks To Buy Now

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.”