Zoom Video Communications (ZM)
When meetings and classes moved online due to the pandemic, Zoom’s business flourished.
But as the economy reopened and employees started going back to the office, there have been concerns about the growth potential of this video communications company.
Year to date, Zoom shares have fallen 42%.
But Wood continues to see opportunity in the stock. In fact, Zoom is currently the largest holding at ARKK, accounting for 10.1% of the fund’s weight.
Earlier this month, Ark Invest released a research report showing how Zoom shares could see a glorious revival in the not-too-distant future.
“According to ARK’s open-source research and model, Zoom’s share price could approach $1,500, compounding at a 76% annual growth rate, in 2026,” Wood’s team wrote.
Since Zoom shares trade at around $106 a piece right now, that price target implies a potential upside of over 1,300%.
Tesla has long been a staple for growth investors. But now, it’s also a name worth considering for contrarian investors – given how much the stock has pulled back.
Since reaching a closing high of $1,229.91 on Nov. 4, the stock has fallen by a staggering 46%.
But business remains on the right track. In Q1, deliveries of the Model S, Model X, Model 3, and Model Y totaled 310,048 vehicles, up 68% year over year.
Ark Invest also sees a gaming-changing product coming for the company — robotaxi.
“Tesla’s prospective robotaxi business line is a key driver, contributing 60% of expected value and more than half of expected EBITDA in 2026,” wrote Ark analyst Tasha Keeney in a report in April.
In that report, Ark expects a share price of $4,600 for Tesla by 2026. That represents a potential upside of over 590% from where the stock sits today.
So it shouldn’t come as a surprise that Tesla is the second-largest holding at ARKK with an 8.6% weight.
The secular trend of on-demand video streaming has created several winners in the tech space.
Roku is one of them. Since going public in September 2017, the stock has returned more than 200%.
The company’s platform gives users access to streaming services such as Youtube, Netflix, and Disney+. Roku also offers its own ad-supported channels featuring licensed third-party content.
The company added 1.1 million active accounts in Q1, bringing its total active accounts to 61.3 million. Revenue rose 28% year over year to $734 million.
Although Roku’s business is growing, investors have been bailing in rapid fashion. The stock is down a staggering 82% over the past 12 months.
But Ark Invest is not giving up on Roku. In fact, Roku remains the third-largest holding at ARKK, accounting for 8.4% of the fund’s weight.
Fine art as an investment
Stocks can be volatile, cryptos make big swings to either side, and even gold is not immune to the market’s ups and downs.
That’s why if you are looking for the ultimate hedge, it could be worthwhile to check out a real, but overlooked asset: fine art.
Contemporary artwork has outperformed the S&P 500 by a commanding 174% over the past 25 years, according to the Citi Global Art Market chart.
And it’s becoming a popular way to diversify because it’s a real physical asset with little correlation to the stock market.
On a scale of -1 to +1, with 0 representing no link at all, Citi found the correlation between contemporary art and the S&P 500 was just 0.12 during the past 25 years.
Earlier this year, Bank of America investment chief Michael Harnett singled out artwork as a sharp way to outperform over the next decade — due largely to the asset’s track record as an inflation hedge.
Investing in art by the likes of Banksy and Andy Warhol used to be an option only for the ultrarich. But with a new investing platform, you can invest in iconic artworks just like Jeff Bezos and Bill Gates do.