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Cathie Wood Stocks To Buy And Watch: Tesla Stock Races Higher

Cathie Wood’s ARK Invest ETFs were some of the hottest funds after 2020’s huge stock market gains and are on the rebound after big losses in 2021 and 2022. Five Cathie Wood stocks to buy and watch in 2023 are Coinbase Global (COIN), Roku (ROKU), Block (SQ), Tesla (TSLA) and Zoom Video Communications (ZM).


Is ARKK A Buy Right Now?

The ARK Invest investment company’s flagship fund is ARK Innovation ETF (ARKK). The ARKK ETF focuses on companies that exhibit “disruptive innovation,” a technologically-enabled new product or service that potentially changes the way the world works.

The ARK Innovation ETF surged more than 152% in 2020, handily beating the Nasdaq’s hefty 43.6% return. But the ARKK ETF sharply underperformed the Nasdaq in 2021, finishing down 24% compared to the Nasdaq’s 21.4% advance. That underperformance continued in 2022, with the ARKK ETF plunging 67% vs. the Nasdaq’s 33.1% annual loss. The ARKK ETF is rebounding so far in 2023, up 54.5% through Dec. 5.

With the ARKK ETF about 4% off its 52-week high, the ETF is approaching a buy point at 51.33. Currently, the ETF is forming a cup base. Wait for the ETF to break out past a correct buy point to indicate the proper time to buy. The ARKK ETF rose 1.4% Wednesday.

Other ARK ETFs include Autonomous Technology & Robotics (ARKQ), Next Generation Internet (ARKW), Genomic Revolution (ARKG), Fintech Innovation (ARKF) and the recently-debuted Space Exploration and Innovation (ARKX).

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How To Invest Like Cathie Wood: Focus On Game Changers

The ARKK fund’s huge gain in 2020 resulted from big stock success stories in cutting-edge tech arenas: DNA sequencing, robotics, artificial intelligence, energy storage and blockchain technology.

“Disruptive innovation is often not priced correctly by traditional investment strategies because people may not understand how big the ultimate opportunities are going to be. They aren’t sizing the opportunity and they aren’t analyzing the disruption,” Wood, the founder and CEO of ARK Invest, commented on the company’s website.

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Cathie Wood Stocks To Buy And Watch

Cathie Wood stocks to buy and watch include Coinbase, Roku, Block, Tesla and Zoom Video.

Company Name Symbol Closing Price Weight In ARKK
Tesla (TSLA) 238.72 7.51%
Roku (ROKU) 105.19 8.69%
Coinbase (COIN) 140.20 11.64%
Zoom Video (ZM) 68.72 6.78%
Block (SQ) 64.89 5.95%
UiPath (PATH) 24.67 8.04%
Source: ARK funds data as of Dec. 6, 2023

Coinbase Stock

Cryptocurrency exchange Coinbase debuted on April 14, 2021 pricing at $250 per share.

On Nov. 24, Coinbase shares jumped above a 114.43 buy point in a cup base. Shares are extended past the 5% buy area.

COIN stock dropped 0.5% Wednesday, just 5% off its 52-week high.

Coinbase represents another one of the Cathie Wood stocks that offers more exposure to cryptocurrencies.

Zoom Video Stock

Zoom Video is the leader in modern enterprise video communications, with a cloud platform for video and audio conferencing, chat, and webinars across mobile, desktop, and room systems.

On Nov. 20, Zoom beat expectations for its fiscal third quarter, but offered mixed guidance for the current period.

The San Jose, Calif.-based company earned an adjusted $1.29 a share on sales of $1.14 billion in the quarter ended Oct. 31. Analysts polled by FactSet had expected Zoom earnings of $1.09 a share on sales of $1.12 billion. On a year-over-year basis, Zoom earnings rose 21% while sales increased just 3%.

On Wednesday, Zoom stock was up 2.5%. Shares are forming a cup base with a 75.91 buy point.

Roku Stock

Roku stock is trading around 3% off its 52-week high amid big gains in recent weeks.

On Nov. 1, Roku added more new users than expected in the third quarter, which drove a top-line beat.

The San Jose, Calif.-based company added 2.3 million new accounts, ending the period with 75.8 million active accounts. Analysts had expected 1.8 million new accounts in the third quarter. Roku’s sales rose 20% year over year to $912 million, topping the consensus estimate of $857 million.

ROKU shares fell 1.6% Wednesday, holding above a 98.44 buy point in a consolidation.

Block Stock

Block is a digital payments and cryptocurrency leader. The stock is about 23% off its 52-week high, but back above its 50- and 200-day moving averages.

According to IBD Stock CheckupBlock stock shows an 85 out of a perfect 99 IBD Composite Rating. The IBD Composite Rating helps investors easily measure the quality of a stock’s fundamental and technical metrics.

On Nov. 3, Square-parent Block reported third-quarter earnings and revenue that topped estimates. SQ stock jumped on preliminary 2024 guidance for earnings before interest, taxes, depreciation and amortization, a key metric known as EBITDA.

Block stock moved up 6% Wednesday, moving up the right side of a cup base that has a 81.47 buy point.

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Tesla Stock Is One Of The Biggest Cathie Wood Stocks To Watch

Tesla stock rose 1.3% Tuesday, ending a four-day skid. Shares are rebounding from their key 50-day line, which is a potential support level. The stock’s big double-bottom pattern has a 278.98 buy point.

On Wednesday, TSLA stock rallied 1.9%, looking to add to Tuesday’s gains.

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