Back when investors willingly took risks on unproven technology firms, ARK Invest (ARKK) attracted investors. Unfortunately, the actively managed ETF manages only $7.3 billion. It lost $2.03 billion in fund flow in the last year and $3.01 billion in the last three years, according to etfdb.com
ARK’s biggest losers start with Teladoc (TDOC). The virtual health market is out of favor, now that the pandemic ended. Down by 33% YTD, the firm announced an interim CEO, Mala Murthy. Any executive change is too late: the firm should have replaced the leadership team three years ago.
Roku (ROKU) plunged from $100 to around $60 this year. The connected advertising TV market faces stiff competition. ROKU shares remain expensive.
In the gaming platform, Unity (U) cannot break out of a business downtrend. It changed its licensing fee structure, angering gaming developers. Beware of more downside, since valuations are still too high.
Pacific Bioscience (PACB) shares are fading. Despite posting a 113% Y/Y increase in revenue to $58.36 million, buyers for PACB stock are absent.
Tesla is ARK’s prized holding. After selling shares a few years ago, Cathie Wood re-built a position. The manager ignored the accelerating slump in sales of EVs. Even Ford (F) pivoted from its EV strategy, selling more hybrids instead.
