Last week, Cathie Wood's ARK ETFs experienced a significant rebound, with many of her funds surging by around 8%. The ARK Innovation ETF (ARKK) in particular reached a three-year high, thanks to strong performances from several of its key holdings.
One of the standout performers was Coinbase (COIN), which surged by around 30% last week. Each of the ARK ETFs, including ARKK, ARKW, and ARKF, invests about 8% of their portfolios in COIN shares. Coinbase's surge was driven by its announcement to enter the stablecoin market, which pushed the stock above a key buy point.
Another important holding in ARK ETFs is Tesla (TSLA), which added more than 2% last week on optimism around its robotaxi launch. Tesla has started testing robotaxis with passengers in Austin, TX, with customers paying a flat fee of $4.20. The electric vehicle manufacturer aims to establish a strong position in the competitive self-driving technology market.
Roblox (RBLX) shares also jumped by around 8.8% last week, bringing the stock up 73.5% this year. The video game platform's surge continued after the release of its Q1 earnings report in early May, which showed a quarterly loss of $0.32 per share, better than the Zacks Consensus Estimate of a loss of $0.41. The company also posted revenues of $1.21 billion, surpassing the Zacks Consensus Estimate by 5.35%.
Overall, the recent momentum in ARK ETFs signals a potential turnaround for Cathie Wood's innovation-driven strategy. The strong performances from key holdings like Coinbase, Tesla, and Roblox have helped to boost the funds' performance and could indicate further gains in the coming weeks and months.
Investors interested in learning more about ARK ETFs and their potential for growth can download the free report from Zacks Investment Research today. The report includes in-depth analysis of ARK ETFs and their top holdings, as well as recommendations for investors looking to capitalize on the momentum in these funds.
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