Cathie Wood’s Top Holdings Are Tumbling

Cathie Wood, CEO and founder of Ark Invest, takes big bets on companies that she sees having high growth potential, such as Tesla (TSLA), Coinbase (COIN), Zoom Video Communications (ZM), DraftKings (DKNG) and Roku (ROKU).

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Tesla stock, Coinbase, UiPath (PATH), Roku and Zoom Video are Ark Invest’s top holdings as of Oct. 20. Those five Cathie Wood stocks account for 29% of all Ark’s holdings. Square-parent Block (SQ), Exact Sciences (EXAS), Roblox (RBLX), Twilio (TWLO) and DKNG stock round out the top 10. All told, Ark has nearly 46% of its funds in these 10 stocks.

DraftKings is the top 2023 performer among big Cathie Wood stocks, up 137.7% as of Oct. 20. COIN stock is up 116.6%. Tesla stock has jumped 72.1%, despite big losses in the week. Block is the biggest laggard, down 30%.

But all 10 top Cathie Wood stocks are off more than 20% from their 2023 highs, with SQ stock plunging 51.1%. Much of that is a reflection of the market’s overall downtrend since late July.

Year to date, the Dow Jones has edged down 0.1%, the S&P 500 index has climbed 10% and the Nasdaq composite has rallied just over 24%.

Cathie Wood Stocks: Top Holdings’ 2023 Performance

Company
Ticker
2023 change
Vs. all-time high
Vs. 2023 high

DraftKings
DKNG
137.7%
-63.6%
-21.5%

Coinbase
COIN
111.0%
-82.6%
-34.9%

Tesla
TSLA
72.1%
-48.9%
-29.2%

Exact Sciences
EXAS
29.8%
-59.7%
-36.2%

Roku
ROKU
46.9%
-87.8%
-39.3%

UiPath
PATH
22.2%
-82.7%
-22.1%

Roblox
RBLX
11.6%
-77.6%
-33.4%

Twilio
TWLO
8.9%
-88.3%
-33.1%

Zoom
ZM
-8.9%
-89.5%
-27.5%

Block
SQ
-30.0%
-84.8%
-51.1%

DraftKings Stock

DKNG stock traded near 52-week lows right at the end of 2022, but then took off, nearly doubling through late February. After consolidating for a couple months, the online sports betting giant broke out again, running up all the way to 34.49 on Aug. 4. Shares sold off hard for the next two weeks but since then has consolidated in a volatile fashion. Shares fell back below their 50-day line last week. DraftKings stock is 21.5% below its 2023 high, but the smallest retreat of any of these Cathie Wood stocks.

Coinbase Stock

Coinbase shot up in January, then retreated in a choppy fashion until early June, when shares took off and more than doubled again in little over a month to a 114.43 on July 14.  Since then shares have given up more than a third of their value, though COIN stock has stabilized recently. Much of Coinbase stock’s ups and down have reflected hopes or setbacks for a spot Bitcoin ETF.

Tesla Stock

After a huge run to start the year, TSLA stock consolidated for a few months, but ran up rapidly from late April to a 2023 peak of 299.29 on July 19. Since then, shares have sold off, largely on the Q2 and Q3 earnings reports and concerns about the Cybertruck and future growth drivers. TSLA stock has tumbled below its 200-day line to its lowest level since early June.

Still, Tesla is the only one of Cathie Wood’s top-10 stocks that is down less than 50% from record highs.

Cathie Wood Pares Winners

Ark Invest has a $2,000 price target on Tesla stock in 2027, but Cathie Wood has slashed her big holdings in recent weeks. Wood has a tendency to sell stocks after a strong gain. Plus, TSLA stock had been exceeding 10% of the total value of ARK Innovation ETF (ARKK). With Ark’s recent share sales and Tesla stock’s big recent tumble, that’s no longer the case.

Tesla Profitable, Many Cathie Wood Stocks Aren’t

Cathie Wood bets big on companies on cutting-edge fields, from EVs to artificial intelligence, automation, telemedicine and gene editing. But that doesn’t necessarily mean these particular companies and stocks will lead the way, even on a Wood-style time horizon.

Tesla is highly profitable, though EPS is falling in 2023, with earnings down 37% in Q3 vs. a year erlier. UIPath, Twilio, Zoom and Block are profitable, with DKNG stock turning so. Coinbase, Exact Sciences, Roku and Roblox are all losing money.

Ark Invest ETFs In 2023

Cathie Wood’s flagship ARK Innovation ETF dived 67% in 2022 but has rebounded 41% in 2023. ARKK is still 72.4% below its February 2021 peak.

The Ark Genomic Revolution ETF (ARKG) has bounced 20.8% this year but is off 70.4% from its all-time high.

Ark Fintech Innovation ETF (ARKF) has jumped 45.4% in 2023 after setting record lows in 2022.

All three are down more than 10% from their 2023 highs.

Please follow Ed Carson on X/Twitter at @IBD_ECarson, Threads at @edcarson1971 and Bluesky at @edcarson.bsky.social for stock market updates and more.

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