Ark Invest Stock Portfolio: Top 5 Picks

In this article, we discuss the Ark Invest Stock Portfolio: Top 5 Picks. If you want to read our detailed analysis of these stocks, go directly to Ark Invest Stock Portfolio: Top 10 Picks.

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

Number of Hedge Fund Holders: 49

Weight as of September 27: 4.68%

Coinbase Global, Inc. (NASDAQ:COIN) ranks fifth on the list of Ark Invest’s top 10 stock picks. Coinbase Global, Inc. (NASDAQ:COIN) serves as a cryptocurrency platform for over 68 million users at the end of Q2 2021.

On September 14, Piper Sandler analyst Richard Repetto reiterated an Overweight rating on Coinbase Global, Inc. (NASDAQ:COIN) with a price target of $335 per share. 

In the second quarter of 2021, Coinbase Global, Inc. (NASDAQ:COIN) reported an EPS of $6.78, beating estimates by $4.09. The company’s revenue in the second quarter came in at $2.23 billion and beat revenue estimates by $345.98 million. Coinbase Global, Inc. (NASDAQ:COIN) had 8.8 million monthly transacting users in Q2 2021, up from 1.5 million users in Q2 2020.

At the end of the second quarter of 2021, 49 hedge funds in the database of Insider Monkey held stakes worth $2.96 billion in Coinbase Global, Inc. (NASDAQ:COIN), up from 0 in the preceding quarter. 

In the Q2 2021 Investor Letter, Miller Value Partners highlighted a few stocks and Coinbase Global Inc. (NASDAQ:COIN) is one of them. Here is what the fund said:

“Coinbase (COIN) became a public company in mid-April following their direct listing at a reference price of $250. Coinbase is a cryptocurrency exchange that allows consumers, financial institutions and businesses to transact between fiat and cryptocurrencies and securely store and use cryptocurrencies. We believe over the long term the company has the potential to be the leading technology platform in the growing cryptocurrency space.

COIN’s 2021 revenues are expected to be 4.5x its 2020 revenues as crypto prices and volumes have exploded. It trades at 30x this year’s earnings, which is quite a steal for a quickly growing company in this market. That’s because the market believes this is peak cycle revenues and earnings, and retail margins will be pressured. That all very well may be true, but we see significant potential for the business over the long term as the nascent industry continues to grow and COIN cements it’s position as the leading platform.”