tl;dr
Cathie Wood's ARK Innovation ETF (NYSEARCA:ARKK) has struggled to keep pace with the broader market rally in early 2024, with the flagship fund down 10.4% year-to-date and facing significant outflows. This contrasts with the strong performance of the Info Tech sector and the growth-oriented Nasdaq C...
Cathie Wood's ARK Innovation ETF (NYSEARCA:ARKK) has struggled to keep pace with the broader market rally in early 2024, with the flagship fund down 10.4% year-to-date and facing significant outflows. This contrasts with the strong performance of the Info Tech sector and the growth-oriented Nasdaq Composite (COMP.IND), which have outperformed all major averages year-to-date. In comparison, the popular Invesco QQQ Trust ETF (NASDAQ:QQQ) has risen 4.8% and attracted $5.94 billion in new investment, while the Vanguard Growth Index Fund (NYSEARCA:VUG) has advanced 4.4% and received $487.7 million of net new money.
ARKK's struggles can be attributed to the underperformance of its top five holdings, all of which have declined in 2024 and collectively represent 37.91% of the ETF's portfolio. This has limited the potential for other names to shine. The top five holdings and their 2024 performances are as follows:
- Coinbase Global (COIN): 8.75% weighting and -24.8% YTD
- Roku (ROKU): 7.84% weighting and -1.8% YTD
- Tesla (NASDAQ:TSLA): 7.62% weighting and -23.2% YTD
- Zoom Video Communication (ZM): 7.13% weighting and -5.8% YTD
- UiPath (PATH): 6.57% weighting and -4.5% YTD
Additionally, Wood's five other actively managed exchange-traded funds have also struggled in 2024. All five of these funds have traded in negative territory and experienced net outflows, with returns ranging from -4.9% to -10.2% year-to-date.
More about Coinbase Global Inc
Coinbase Global Inc. is a finance services company with a market capitalization of $31.78 billion. The stock has experienced a 3.21% decrease in the past year, with a current price-to-earnings ratio of 11.3. Market sentiment appears to be slightly bearish, with a negative price change of 0.28 and a relative strength index of 88.29, indicating potential overbought conditions. However, the company's technology for the crypto economy may present opportunities for future growth, with a positive earnings per share of 3.27. It is important to note that past performance is not always indicative of future results, and there may be uncertainties related to the volatility of the cryptocurrency market.
More about Roku Inc
Roku Inc. operates a TV streaming platform and is headquartered in San Jose, California. With a market capitalization of $12,682,108,000 and a stock price of $88.94, the company has seen a 6.49% decrease in its stock performance. The Relative Strength Index (RSI) of -0.649 indicates a bearish trend, and the Bollinger Bands suggest a potential breakout. However, it's important to note that past market behavior is not always a reliable indicator of future performance, and there are uncertainties associated with the current market sentiment.
More about Tesla Inc
Key Financial Metrics:
- Revenue: $96.77 billion
- Market Cap: $608.07 billion
- EPS: 4.3
- P/E Ratio: 44.4
- Dividend Yield: 0.155
Stock Performance:
- Stock Price: $214.82
- Relative Strength Index (RSI): 30.49
- Moving Averages: Bullish trend with 50-day MA at 1.115
Market Sentiment:
- Tesla, Inc. continues to dominate the plug-in and battery electric car market, capturing significant market share in both segments. The company's revenue and market cap reflect its strong position in the industry. However, the stock price is currently below the 50-day moving average, indicating a potential bearish trend. Investors should be cautious as the Relative Strength Index (RSI) is also indicating oversold conditions, suggesting a potential reversal in the stock's performance. Additionally, the company's high P/E ratio suggests that the stock may be overvalued, and there are uncertainties surrounding future growth and profitability. It is important to consider these risks before making any investment decisions.
More about Zoom Video Communications Inc
Zoom Video Communications Inc. is a leading provider of video communications platforms, operating in various regions around the world. The company has a market capitalization of $20,621,613,000 with a stock price of $89.13. The stock has shown a 0% change in the last trading session and a 0.76% increase in the last month. With a 15.12 P/E ratio and a 0.0522 EPS, Zoom Video Communications Inc. has a market sentiment that indicates a bullish trend. However, it is important to note that past performance is not always indicative of future results, and there may be potential risks associated with investing in this stock.
More about Uipath Inc
UiPath Inc. is a technology company providing robotic process automation (RPA) solutions with a market capitalization of $13,693,428,000. The stock performance shows a decrease of 0.27% with a price of $2.161. The market sentiment seems neutral with a trading volume of 1,211,368,000 and a stock price of $23.88. However, it is important to note that past performance is not always indicative of future results, and potential risks and uncertainties should be considered before making any investment decisions.
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