As Cathie Wood says, Ark Invest is “all about finding the next big thing.” And she has found several already.
Wood’s top picks like Tesla and Shopify have delivered enormous returns for Ark investors. In the past five years, Ark’s flagship fund — Ark Innovation ETF — has returned a whopping 440%, substantially outperforming the Dow, S&P 500 and Nasdaq.
And while the famed investor may have sold some shares of growth stocks like Tesla during the current bull run, she’s still putting more money in new ones.
Here’s a quick look at three Ark Invest holdings that could be worth pouncing on with some of your extra cash.
Teladoc Health (TDOC)
Teladoc Health is one of the leading telemedicine companies in the U.S. It has a consistent track record of revenue growth and margin improvement.
Unsurprisingly, the company benefited from the extraordinary environment brought on by COVID-19. When most forms of non-life-threatening, in-office medical care were put on hold during the peak of the pandemic, telehealth adoption exploded.
Teladoc’s revenue increased 98% in 2020 to $1.09 billion, with total visits surging 156%.
For 2021, management is projecting a top-line of between $2.015 billion and $2.025 billion.
Teladoc is currently the second-largest holding at Ark Innovation ETF, accounting for 6.4% of the fund’s weight.
If you’re not ready to commit big to a few key stocks, you can always build a diversified portfolio using nothing more than digital nickels and dimes.
Zoom Video Communications (ZM)
One of investors’ favorite stay-at-home stocks, Zoom has gone on a rollercoaster ride.
Shares of the video communications company were trading in the $60s at the beginning of 2020. They skyrocketed to over $560 apiece by October 2020, but have since given up more than half of the gains.
Wood was not afraid to buy the dip. Earlier this month, Ark Invest bought over 225,000 shares of Zoom. Wood’s flagship ETF now owns 3.82 million shares of the company, with a portfolio weighting of 4.95%.
In the most recent fiscal quarter, total revenue rose 35% year-over-year to $1.05 billion. It also brought in $338.4 million in adjusted net income and $374.8 million in free cash flow.
Even after this year’s pullback, Zoom trades at well over $200 per share. But…
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