Cathie Wood 2026 Portfolio: 5 Best Stocks to Buy

3. Roku Inc (NASDAQ:ROKU)

ARK’s Stake Value: $638.1 Million

ARK cut its stake in streaming technology company Roku Inc (NASDAQ:ROKU) by 20% in the fourth quarter, but still ended the period with a $640.5 million position. The stock is up 35% over the past 12 months.

Insider Monkey’s database shows that the number of hedge funds having a stake in ROKU jumped by 20 in the fourth quarter as compared to the September quarter. Why is smart money interested in Roku Inc (NASDAQ:ROKU)?

Roku Inc (NASDAQ:ROKU) is seeing strong platform revenue gains amid growth in higher monetization through subscriptions and price increases. It’s focusing on high-margin platform revenue instead of low-margin hardware. Analysts believe secular growth catalysts for the stock include connected TV advertising, international streaming expansion and higher fill rates in ads.

After Roku’s (NASDAQ:ROKU) strong Q4 results last month, Morgan Stanley said the company’s investments in retail partnerships and technology, and said longer TV lifecycles could help the company in the CTV market.