Cathie Wood’s ARK Plummeted More Than 46% to $82.25
The Nasdaq has increased by at least 80 basis points since investors acquired ARK Innovation shares five years ago and had well over 250 percent gains. After reaching an all-time high of $152 in early February, ARK’s shares have plummeted, with only unrealistic earnings growth keeping them at their present levels—let alone allowing for further expansion.
The market realized that earnings would fall significantly short of expectations in the coming years. Since early last year’s peak, ARK has plummeted 46% to $82.45 at lunchtime on Jan. 10. About a third of the drop came after Wood tweeted ARK was a “deep value” stock. To compare, the S&P 500 has gained 25%, while the Nasdaq has gained 15%, whereas, since the start of 2021, ARK has plummeted 33%.
Tesla the Sole Winner
A majority of ARK’s main holdings have declined since January 2021. Tesla is the sole winner among the top ten equities in ARK’s overall investment, up 34%. Coinbase is about unchanged since going public in April, whereas Unity Software has lost 14%, Block 31%, Twilio 34%, Spotify 36%, and Exact Sciences 45%.
Encompassing 18% of the portfolio was lost on Roku, Teladoc and Zoom. One would think a massive retreat like this would make ARK a bargain. Amazingly, it’s still outrageously pricey.
Even if many of Wood’s future-tech choices produce little returns or losses, ARK has remained steadfast in its support of Wood’s vision. And most of her options have been around for a long time, with plenty of room to profit.