ARK Invest Stock Portfolio: Top 5 Picks

3. Roku, Inc. (NASDAQ:ROKU)

Number of Hedge Fund Holders: 34

Roku, Inc. (NASDAQ:ROKU) is a California-based company that operates a TV streaming platform. Cathie Wood’s stock portfolio holds nearly 12 million Roku, Inc. (NASDAQ:ROKU) shares as of the third quarter of 2022, worth more than $672 million and representing 4.68% of the total 13F portfolio. Roku, Inc. (NASDAQ:ROKU) stock has featured in the ARK portfolio since Q2 2019 and the hedge fund lifted its position by 18% in the September quarter. 

On September 8, Pivotal Research analyst Jeffrey Wlodarczak upgraded Roku, Inc. (NASDAQ:ROKU) to Hold from Sell with an unchanged price target of $60. The shares have reached an appropriately balanced risk/reward level and profits should be taken on short positions, the analyst told investors in a research note. The analyst believes that Roku, Inc. (NASDAQ:ROKU) is “getting hit materially harder than its advertising peers.”

According to Insider Monkey’s second quarter database, 34 hedge funds were long Roku, Inc. (NASDAQ:ROKU), and Jim Simons’ Renaissance Technologies is a significant stakeholder of the company, with approximately 2 million shares worth $162 million. 

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…” (Click here to see the full text)