In this article, we will take a look at the 5 best ARK stocks to buy now. To see more such companies, go directly to 15 Best ARK Stocks To Buy Now.
5. Zoom Video Communications Inc. (NASDAQ:ZM)
Number of Shares Owned by ARK: 10,182,913
Stake Value: $712,192,966
Number of Hedge Fund Holders: 37
Cathie Wood’s hedge fund owns a $712 million stake in Zoom Video Communications, Inc. (NASDAQ:ZM). Zoom Video Communications, Inc. (NASDAQ:ZM) hasn’t been much rewarding for the hedge fund over the past few months as the video calling platform loses its appeal it once enjoyed during the pandemic days. Zoom Video Communications, Inc. (NASDAQ:ZM) is down about 8% year to date through October 24.
4. Roku, Inc. (NASDAQ:ROKU)
Number of Shares Owned by ARK: 10,439,813
Stake Value: $736,946,416
Number of Hedge Fund Holders: 29
Cathie Wood reported owning 10.4 million Roku, Inc. (NASDAQ:ROKU) shares as of the end of the second quarter of 2023. The total value of these shares at the end of June was $736.95 million.
Overall, 29 hedge funds out of the 910 hedge funds tracked by Insider Monkey had stakes in Roku, Inc. (NASDAQ:ROKU).
Here is what Saga Partners has to say about Roku, Inc. (NASDAQ:ROKU) in its Q2 2022 investor letter:
“The Portfolio first bought Roku in Q3’20. It was a company we followed closely given our investment in The Trade Desk and its importance in connected television (CTV). Roku continued to impressively grow its CTV market share and it took some extra work to understand the underlying dynamics causing Roku’s success. I think there is some misunderstanding surrounding the connected television landscape. Since I haven’t written extensively on the topic in past letters, I thought it would be helpful to provide a little more background on the underlying dynamics of the space below…”
3. Coinbase Global, Inc. (NASDAQ:COIN)
Number of Shares Owned by ARK: 10,603,564
Stake Value: $796,115,573
Number of Hedge Fund Holders: 27
Cathie Wood has been holding on to Coinbase Global, Inc. (NASDAQ:COIN) even after a global crypto turmoil that hammered many crypto stocks. Cathie Wood’s ARK owns a $796 million stake in Coinbase Global, Inc. (NASDAQ:COIN).
Earlier in October Coinbase Global, Inc. (NASDAQ:COIN) jumped after the company received a Major Payment Institution license from the Monetary Authority of Singapore.
Here is what Miller Value Partners Opportunity Trust Fund has to say about Coinbase Global, Inc. (NASDAQ:COIN) in its Q2 2022 investor letter:
“Coinbase Global Inc. Ordinary Shares (NASDAQ:COIN) fell during the quarter as the crypto markets continued to suffer. While the company reported disappointing results, it committed to capping EBITDA losses at $500M even in the event of “a prolonged market downturn”. COIN’s ample liquidity ($6b in cash on hand) should enable them to survive a prolonged “crypto winter” and invest to strengthen the business in the downturn. While the crypto market is early in its adoption, Coinbase is focused on building the platform for crypto not only supporting trading, and cold storage, but moving into NFTs, staking, and crypto derivatives. We see tremendous upside potential for COIN over the next decade if they are able to successfully execute on their platform strategy.”
2. UiPath Inc. (NYSE:PATH)
Number of Shares Owned by ARK: 47,326,276
Stake Value: $809,752,591
Number of Hedge Fund Holders: 28
UiPath Inc. (NYSE:PATH) ranks 2nd in our list of the best ARK stocks to buy now. Cathie Wood’s hedge owns an $810 million stake in UiPath Inc. (NYSE:PATH).
ClearBridge Investments made the following comment about UiPath Inc. (NYSE:PATH) in its Q3 2022 investor letter:
“Over the last three months, we similarly exited UiPath Inc. (NYSE:PATH) due to a change to our original thesis as we believe a new go-to-market strategy for its automation software could impact near-term execution. While we think process automation is a growing market, in a slowing macro environment single solutions may be more vulnerable than the platform solutions of software providers who can bundle products to meet a wide range of needs. In addition, the company has a material component of sales sourced in Europe where the economy is more vulnerable.”
1. Tesla, Inc. (NASDAQ:TSLA)
Number of Shares Owned by ARK: 4,078,651
Stake Value: $1,020,559,951
Number of Hedge Fund Holders: 79
Cathie Wood believes Tesla, Inc. (NASDAQ:TSLA) shares could hit $2000 by 20207. She owns a $1.1 billion stake in Tesla, Inc. (NASDAQ:TSLA).
Baron Partners Fund made the following comment about Tesla, Inc. (NASDAQ:TSLA) in its Q2 2023 investor letter:
“Many factors contributed to the strong performance of our largest Disruptive Growth position, Tesla, Inc. (NASDAQ:TSLA), in the period. Investors’ concerns regarding Tesla in 2022 continue to dissipate, and the company’s business has continued to grow materially, although at below peak margins. Tesla’s deliveries in China are recovering. The company’s newest factory in Texas has ramped production and should contribute to improved domestic sales and margins. U.S. government policies have lowered the cost to own Tesla vehicles, while also reducing the company’s battery production expenses.
We continue to believe that Tesla is only scratching the surface of its potential. We regard announced partnerships between Tesla and its competitors in the quarter as important. In early June, Tesla agreed to provide Ford Motors access to Tesla’s electric vehicle (EV) charging technology and network. Other traditional and pure EV manufacturers, including General Motors, Rivian, and Volvo, quickly followed suit. We expect additional charging partnerships to ensue. In our view, these relationships validate Tesla’s charging technology and infrastructure as superior to other standards. Consolidation around a single technology should accelerate charging infrastructure deployment, diminish the risk of Tesla’s technology becoming obsolete, and lessen a key concern of hesitant EV purchasers. EV adoption is at a tipping point. And Tesla, with its approximately 60% domestic market share of EVs, should be the most important beneficiary of this shift…”
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