ARK Invest is an investment management firm that was founded in 2014 by Cathie Wood.
ARK Invest focuses on investing in disruptive innovation, which the firm defines as “the profound economic and social changes brought about by new technologies.”
In July 2023, ARK Invest is acquiring stocks based on a series of criteria outlined on Cathie’s Ark website.
These include a company’s disruptive and growth potential, valuation, and strength of management team. They also look for a competitive advantage or “moat”, a large addressable market, and a strong ESG profile.
Essentially, they are focusing on businesses they perceive as undervalued, potentially disruptive in their industries, and committed to environmental, social, and governance principles.
ARK Invest manages a number of exchange-traded funds (ETFs), which are baskets of stocks that are traded on stock exchanges. The firm’s most popular ETFs include:
- ARKK: The ARK Innovation ETF is a thematic ETF that invests in companies that are leading or benefiting from disruptive innovation.
- ARKQ: The ARK Autonomous Technology & Robotics ETF is a thematic ETF that invests in companies that are developing or using autonomous technology and robotics.
- ARKG: The ARK Genomic Revolution ETF is a thematic ETF that invests in companies that are developing or using genomic technology.
- ARKF: The ARK Fintech Innovation ETF is a thematic ETF that invests in companies that are developing or using financial technology.
- ARKW: The ARK Next Generation Internet ETF is a thematic ETF that invests in companies that are developing or using next-generation internet technologies.
New stocks in July
In July, ARK Invest purchased new stocks will show the total stocks bought in July.
Please focus on TWLO COIN and SOXL
TWLO
TWLO stands for Twilio Inc., a cloud communications platform company headquartered in San Francisco, California. Twilio provides a set of APIs that enable developers to embed voice, messaging, and video interactions into their customer-facing applications. The company’s products include Twilio Flex, Programmable Voice, Programmable Video, Elastic SIP Trunking, and IoT.
Twilio was founded in 2008 by Jeff Lawson, Evan Cooke, and John Wolthuis. The company went public in 2016 and is currently traded on the New York Stock Exchange (NYSE) under the ticker symbol “TWLO.”
Twilio’s customers include a wide range of businesses, including Uber, Airbnb, Twitter, and Netflix. The company’s products are used to power communication features in a variety of applications, such as customer support, marketing, and sales.
Twilio is a leader in the cloud communications platform market. The company has a strong track record of growth and innovation, and it is well-positioned to continue to grow in the future.
Here are some of Twilio’s key financial metrics:
- Market capitalization: $19.3 billion
- Revenue: $1.7 billion (2022)
- Net income: $310 million (2022)
- Earnings per share: $0.81 (2022)
- Price-to-earnings ratio: 83.3x (2023-07-18)
Twilio’s stock price has been volatile in recent months. The stock price has declined by about 50% since its peak in November 2021. However, the company’s fundamentals remain strong, and analysts believe that the stock is undervalued.
Here are some of the factors that contribute to Twilio’s strong position in the industry:
- The company’s strong track record of growth: Twilio has been growing rapidly in recent years. The company’s revenue has grown by an average of 40% per year over the past five years.
- The company’s wide range of customers: Twilio has a wide range of customers, including large enterprises, small businesses, and startups. This gives the company a diversified customer base, which helps to reduce its risk.
- The company’s strong partnerships: Twilio has strong partnerships with a number of leading technology companies, such as Amazon Web Services (AWS), Google Cloud Platform (GCP), and Microsoft Azure. These partnerships give Twilio access to a large customer base and help the company to grow its business.
- The company’s innovative technology: Twilio’s technology is innovative and easy to use. This makes it a popular choice for developers who are looking to add voice, messaging, and video features to their applications.
Overall, Twilio is a well-established company with a strong track record of growth. The company is well-positioned to continue to grow in the future, and its stock is a good investment for investors who are looking for exposure to the cloud communications platform market.
COIN
COIN is the ticker symbol for Coinbase Global, Inc., a cryptocurrency exchange company headquartered in San Francisco, California. Coinbase was founded in 2012 by Brian Armstrong and Fred Ehrsam. The company went public in 2021 and is currently traded on the Nasdaq stock exchange under the ticker symbol “COIN.”
Coinbase offers a variety of services related to cryptocurrency, including:
- Trading: Coinbase allows users to buy, sell, and trade cryptocurrencies, such as Bitcoin, Ethereum, and Litecoin.
- Storage: Coinbase offers a cryptocurrency wallet that allows users to store their cryptocurrencies safely and securely.
- Education: Coinbase offers a variety of educational resources about cryptocurrency, such as articles, videos, and webinars.
- Research: Coinbase conducts research on cryptocurrency and blockchain technology.
Coinbase is the largest cryptocurrency exchange in the United States. The company has over 73 million users and processed over $547 billion in trading volume in 2021.
Coinbase’s stock price has been volatile in recent months. The stock price has declined by about 70% since its peak in November 2021. However, the company’s fundamentals remain strong, and analysts believe that the stock is undervalued.
Overall, Coinbase is a well-established company with a strong track record of growth. The company is well-positioned to continue to grow in the future, and its stock is a good investment for investors who are looking for exposure to the cryptocurrency market.
Here are some of Coinbase’s key financial metrics:
- Market capitalization: $10.7 billion
- Revenue: $7.4 billion (2021)
- Net income: $3.6 billion (2021)
- Earnings per share: $3.34 (2021)
- Price-to-earnings ratio: 32.1x (2023-07-18)
COIN stock is a risky investment. The company is facing a number of challenges, including the broader sell-off in technology stocks, the decline in the cryptocurrency market, and the SEC investigation. However, the company also has some potential upside, as the cryptocurrency market could rebound in the future.
Apart from broader market factors, COIN has also been dealing with issues with the Securities and Exchange Commission (SEC). In February 2023, the SEC issued a subpoena to COIN for details on its trading practices. The SEC has raised concerns that COIN might have permitted its employees to trade cryptocurrency on the company’s platform before allowing customers. The ongoing SEC investigation, with an uncertain outcome, has negatively impacted COIN’s stock price, as investors fear potential fines or other sanctions.
Investors should carefully consider the risks and potential rewards before investing in COIN stock.
SOXL
SOXL stands for Direxion Daily Semiconductor Bull 3X Shares, an exchange-traded fund (ETF) that seeks daily investment results, before fees and expenses, of 300% of the price performance of the PHLX Semiconductor Index.
The PHLX Semiconductor Index is a market-cap-weighted index of the 30 largest U.S.-listed semiconductor companies. The index includes companies such as Intel, Texas Instruments, and Nvidia.
SOXL is a leveraged ETF, which means that its daily returns are magnified by a factor of 3. This means that if the PHLX Semiconductor Index rises by 1%, SOXL will rise by 3%. However, it also means that if the index falls by 1%, SOXL will fall by 3%.
SOXL is a risky investment. The semiconductor industry is cyclical, and the prices of semiconductor stocks can be volatile. Additionally, leveraged ETFs can magnify losses, so investors should only invest in SOXL if they are comfortable with a high level of risk.
Here are some of the key risks associated with SOXL:
- Market risk: The price of SOXL can go up or down in response to changes in the semiconductor market.
- Leverage risk: The use of leverage can magnify losses, so investors should only invest in SOXL if they are comfortable with a high level of risk.
- Tracking error: SOXL may not track the PHLX Semiconductor Index perfectly, which could result in losses.
Overall, SOXL is a risky investment that should only be considered by investors who are comfortable with a high level of risk.
