ARK continues to decline after Roku’s loss and Coinbase shares sell-off

Yahoo Finance market reporter Alexandra Semenova details the loss to Kathy Wood’s ARK ETF amid a loss in Roku earnings, a Teledoc investment and the sale of Coinbase shares.

video transcript

Dave Briggs: We just discussed about the remaining investments of this bullish market. Instead, the impact of some earnings from both Roku and Teladoc overtook the fund this week. Innovation ETFs have lost more than half their value this year. Alexandra Semenova is here with that story. It’s been a tough one.

Alexandra Semenova: It definitely is. A lot of investors have been leaving in good spirits over the weekend, but Kathy Wood probably isn’t one of them this week.

Dave Briggs: Maybe not.

Alexandra Semenova: Of course, two of its top holdings, Roku and Teladoc, are in the limelight after reporting disappointing earnings and seeing their share prices plummet this week. Roku lost over 20% today after particularly disappointing results and an even more disappointing outlook, even using the R word, talking about the recession fears the company is dealing with right now. Is.

And of course, that led to a flurry of analysts, who downgraded the stock as well, further weighing in on the stock price. And it is the third top holding in Kathy Wood’s flagship ARK Innovation Fund. So, what’s really dragging down this week’s performance. And I just want to note that Roku– Kathy Wood has a price target of $605 per share on Roku. It closed today at around $65 per share. So, a long way to go. And note, that price target is for 2026. Very Ambitious Goals by Kathy Wood.

Read |  Coinbase Derivatives Exchange To Make Nano Bitcoin Futures Available Through Major Brokers

Another, apparently, is Teladoc. Up today, but also yesterday, it lost nearly a fifth of its share price. The fund was also hit, it is the ninth top holding in ARK Innovations. And yes, he bought the dip yesterday at Teladoc. He paid today. But he has a tendency to make stock selections which is not really–

Cena Smith: Yep, Alexandra, tell us about that trend as it threw Coinbase here recently because it’s been a nuisance for a few months. He recently changed his position on Tesla several times while buying on the downside. You just mentioned buying Roku on Dip. What do you understand by that investment strategy?

Alexandra Semenova: Well, he has a very focused portfolio. His strategy is to double his current investments, which is why we often see him seeing a decline in some of his stocks, buying shares of badly hit companies. But Coinbase is a good example of how buying a dip hasn’t helped it so far. He bought Coinbase shares at an average price of around $255 per share and sold them this week for a record low of $53 per share.

The next day, the stock went back up. And, you know, he has a history of doing that. He bought Shopify after the 10–14% drop we saw earlier this week. We’ll see how it goes for him. But the buying fall, so far, hasn’t been so good for Kathy Wood. Clearly, his fund has suffered a tremendous setback. As you mentioned, over 50% of the year to date.

Source link