In this article, we discuss the 5 biggest positions in the ARK Invest portfolio. If you want to read about some more stocks in the ARK Invest portfolio, go directly to Ark Invest Stock Portfolio: 15 Biggest Positions.
5. UiPath Inc. (NYSE:PATH)
Number of Hedge Fund Holders: 26
UiPath Inc. (NYSE:PATH) provides an end-to-end automation platform that offers a range of robotic process automation (RPA) solutions primarily in the United States, Romania, and Japan. ARK Investment Management has 44 million shares worth $559.9 billion in UiPath Inc. (NYSE:PATH) which makes about 5.85 % of its total investment. On December 1, UiPath Inc. posted their earnings for the fourth quarter, reporting earnings per share of $0.05, beating analyst estimates by $0.06. The company’s revenue was $262.74 million, beating analyst estimates by $6.81 million.
On January 10, Barclays analyst Raimo Lenschow maintained an Equal Weight rating on UiPath (NYSE: PATH) stock and reduced the price target from $15 to $13, noting the high estimates for US software in 2023 despite macroeconomic headwinds.
At the end of the third quarter of 2022, 26 hedge funds in the database of Insider Monkey held stakes worth $993.6 million in UiPath Inc. (NYSE:PATH), compared to 24 in the previous quarter worth $1.3 billion.
In its Q1 2022 investor letter, ClearBridge Investment, an asset management firm, highlighted a few stocks and UiPath Inc. (NYSE:PATH) was one of them. Here is what the fund said:
“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 solution 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.”
4. Block, Inc. (NYSE:SQ)
Number of Hedge Fund Holders: 75
Block, Inc. (NYSE:SQ) creates tools that enable sellers to accept card payments and provide reporting and analytics and next-day settlement. ARK Investment Management has 9 million shares worth $565.8 billion in Block, Inc. (NYSE:SQ) which makes up about 4.9 % of its total investment.
On December 12, Mizuho analyst Dan Dolev maintained a Neutral rating on Block, Inc. (NYSE:SQ) stock and raised the price target to $70 from $69, noting that a member of the company’s FinTech & Payments team provided its 2023 outlook for the group’s subsectors against a background of increasing rates.
Among the hedge funds being tracked by Insider Monkey, St. Petersburg, Florida-based investment firm ARK Investment Management is a leading shareholder in Block, Inc. (NYSE:SQ) with 9.2 million shares worth more than $505.5 million.
In its Q2 2022 investor letter, Baron Funds, an asset management firm, highlighted a few stocks and Block, Inc. (NYSE:SQ) was one of them. Here is what the fund said:
“Block, Inc. provides point-of-sale technology to small businesses and operates the Cash App ecosystem of financial services for individuals. Shares fell due to mixed quarterly results with more modest growth in the Seller business offsetting strength in Cash App. While the integration of recently acquired Afterpay is progressing well and credit metrics remain healthy, the buy-now-pay-later business slowed due to greater competitive intensity. We continue to own the stock due to Block’s long runway for growth, sustainable competitive advantages, and unique corporate culture.”
3. Tesla, Inc. (NASDAQ:TSLA)
Number of Hedge Fund Holders: 88
Tesla, Inc. (NASDAQ:TSLA) designs, develops, manufactures, leases, and sells electric vehicles, and energy generation and storage systems. ARK Investment Management has 4.6 million shares worth $569.8 billion in Tesla, Inc. (NASDAQ:TSLA) which makes about 4.93 % of its total investment. On January 25, Tesla inc. posted earnings for the fourth quarter of 2022, reporting earnings per share of $1.19, beating analyst estimates of $1.11. The revenue over the period was $24.32B, beating analyst estimates by $17.21M.
On December 22, Canaccord analyst George Gianarikas maintained a Buy rating on Tesla, Inc. (NASDAQ: TSLA) stock and lowered the price target to $275 from $304, highlighting that the recent tumble in the shares is the worst in the company’s stock history.
At the end of the third quarter of 2022, 88 hedge funds in the database of Insider Monkey held stakes worth $7.4 billion in Tesla, Inc. (NASDAQ:TSLA), compared to 73 in the preceding quarter worth $7.2 billion.
In its Q2 2022 investor letter, Baron Funds, an asset management firm, highlighted a few stocks and Tesla, Inc. (NASDAQ:TSLA) was one of them. Here is what the fund said:
“In 2014, before we began to invest in Tesla (NASDAQ:TSLA), I called Roger to ask whether he thought Elon Musk’s electric car business would succeed. I did not believe that Roger, an owner of dealerships that sell cars powered by internal combustion engines (ICE) would likely have a favorable opinion of Tesla’s prospects. That was principally for two reasons:
First, automobile manufacturing and distribution is unusually complicated, capital intensive, and highly regulated, which makes profitability problematic;
second, cars with ICE motors require extensive annual maintenance, and dealer services revenues, not profits from automobile sales, are the most important contributor to profits of perpetual licensed ICE car dealerships.
Penske Automotive Group is principally an ICE car dealer. Since electric cars are powered by batteries and need little service, franchised dealerships are incented to sell ICE, not EV automobiles. Further, Roger had been a long-term director of General Motors. General Motors’ ICE automobile business would be disrupted if Tesla were successful. (click here to read more…)
2. Zoom Video Communications, Inc. (NASDAQ:ZM)
Number of Hedge Fund Holders: 40
Zoom Video Communications, Inc. (NASDAQ:ZM) provides a unified communications platform in the Americas, the Asia Pacific, Europe, the Middle East, and Africa. ARK Investment Management has 10.6 million shares worth $719 billion in Zoom Video Communications, Inc. (NASDAQ:ZM) which makes about 6.23 % of its total investment.
Among the hedge funds being tracked by Insider Monkey, St. Petersburg, Florida-based investment firm ARK Investment Management is a leading shareholder in Zoom Video Communications, Inc. (NASDAQ:ZM) with 10.6 million shares worth more than $719 billion.
In its Q1 2022 investor letter, Horos Asset Management, an asset management firm, highlighted a few stocks and Zoom Video Communications, Inc. (NASDAQ:ZM) was one of them. Here is what the fund said:
“What about the other asset class that has attracted the most attention from the investment community in recent times? Here we can distinguish three major groups. First, those companies without earnings that had convinced investors of their great future growth prospects, pushing up their valuations to irrational levels. A clear example of this, which we mentioned almost two years ago is Zoom Video Communications (“Zoom”), whose market cap exceeded that of companies such as IBM or came close to that of Cisco Systems. Well, from the time we wrote about this odd situation until today, Zoom shares have collapsed by nearly 80%.
Therefore, if interest rates rise (or are expected to rise), company valuations are negatively impacted. This is especially true for those businesses that generate little cash today and the market expects them to generate a lot of cash in the future. Hence the severe losses in companies that promised a lot of cash generation in the future (such as Zoom).”
1. Exact Sciences Corporation (NASDAQ:EXAS)
Number of Hedge Fund Holders: 34
Exact Sciences Corporation (NASDAQ:EXAS) provides cancer screening and diagnostic test products in the United States and internationally. ARK Investment Management has 16 million shares worth $794.2 billion in Exact Sciences Corporation (NASDAQ:EXAS) which make about 6.88 % of its total investment.
At the end of the third quarter of 2022, 34 hedge funds in the database of Insider Monkey held stakes worth $921.9 million in Exact Sciences Corporation (NASDAQ:EXAS), compared to 28 in the preceding quarter worth $1.1 billion.
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