Tag: ARK NEXT Generation Internet ETF (ARKW)

Cathie Woods: Bold Prediction for Tesla

Posted on by Matt Thalman

Recently the renowned stock picker and Tesla (TSLA) bull made a new price prediction on the automaker, which sounds just as crazy as the last time she made a wild prediction, but the first prediction has come true, and then some.

Cathie Woods is the Founder and lead stock picker for the Ark Invest family of exchange-traded funds. Woods initially started Ark Invest in 2014 and made heavy bets on technology companies.

She became a household name when her original $2,000 price target on Tesla, when the stock was trading for around $300 per share, came true on a split-adjusted basis.

When Cathie initially made her case for Tesla at $2,000, people thought she had lost her mind. They couldn't understand how she arrived at that valuation and why she was so confident in that prediction.

Which, by the way, she was, considering she invested millions in Tesla before it went on its run higher.

Those investments in several different Ark Invest ETFs helped propel several Ark ETFs into the top ten best-performing ETFs for several years in a row.

Cathie is at it again, possibly giving investors a second chance to catch lightning in a bottle.

Cathie Woods Ark Invest owns a little more than $850 million worth of Tesla stock (stock price is currently around $170 per share). She believes the stock price can go to at least $1,400 per share by 2027.

That price is her bear case scenario, with a bull case scenario of $2,500 and a base case price of $2,000 per share. Those figures would represent an eight, eleven, and fourteen-fold return from today's price.

Furthermore, the base-case price of $2,000 per share would give Tesla a market capitalization of $6.3 trillion. For context, two of the largest companies in the world Apple (AAPL) and Microsoft (MSFT), have market caps of $2.7 trillion and $2.2 billion. At $6.3 trillion, Tesla would be worth more than both of them combined. Continue reading "Cathie Woods: Bold Prediction for Tesla" →

Interesting Start To 2021 For Cathie Wood And ARK Invest Funds

Posted on by Matt Thalman

In 2018 an unknown woman came out and proclaimed Tesla (TSLA) was wildly undervalued when the stock was already trading for many multiples, and at levels, most investors considered grossly overvalued. Flash forward to 2020, and most of what this woman name Cathie Wood had proclaimed years prior about Tesla's stock came true.

Back then, Wood's said Tesla would be worth $4,000 per share or a market value of $672 billion; this is when the company was worth $56 billion. Cathie has been proven right about her call on Tesla and has gained massive notoriety because of this bold prediction in 2018. However, her Ark Invest funds have been performing incredibly well even before her Tesla prediction came true as three of her funds, the ARK Next Generation Internet ETF (ARKW), the ARK Innovation ETF (ARKK), and the ARK Genomic Revolution ETF (ARKG) are all in the top ten best performing Exchange Traded Funds over the last five years.

The Tesla prediction coming true, combined with easy access to average investors through Exchange Traded Funds and incredible overall fund performance, has now made Cathie Wood one of, if not the hottest investors to follow, both from a media standpoint and an investment standpoint.

ARK Invests fund inflows have been nothing more than spectacular in 2021, with two of the company's seven funds making the top ten list of most cash inflows. The ARKK fund saw $5.75 billion flow into the fund, making it the ETF with the fourth-highest fund inflows since the start of 2021. ARKG had a $3.68 billion flow into the fund, making it the ninth highest ETF in terms of fund inflows. This is another clear signal that Cathie Wood and her ARK Invest family of ETFs is very popular with investors at this time. Continue reading "Interesting Start To 2021 For Cathie Wood And ARK Invest Funds" →

ARK Investments ETFs Have Been Top Performers

Posted on by Matt Thalman

After a historic November, the best month the market has seen since January 1987, I found an interesting Exchange Traded Fund trend; one ETF manager has three of the top ten best performing ETFs of 2020. Furthermore, what makes this one fund manager even more impressive is this performance when you run the screener and leave leveraged funds in play, even though none of the ARK Invest funds are leveraged products themselves.

So not only are these three funds not leveraged and therefore exposing you to more risk than you may want, but they are beating other leveraged funds. One of the main ways ARK is likely to show excellent results in 2020 is its different way of thinking about investing. They state on their website this belief.

"Not Your Traditional Investment Manager

The world is changing rapidly. While traditional investors seek safety in benchmarks and passive strategies, ARK believes this behavior is counterproductive. Innovation is causing disruption and the risks associated with the traditional world order are rising. We strive to invest at the pace of innovation"

The fund managers certainly see themselves as a little different than others on Wall Street, and this year has undoubtedly proven what they are doing is beating the rest of the pack.

So, how great was the performance of Ark's fund thus far? Continue reading "ARK Investments ETFs Have Been Top Performers" →