Tesla Loses Top Spot in Cathie Wood’s Flagship Fund
Tesla Loses Top Spot in Cathie Wood’s Flagship Fund. This Stock Is the New No. 1.
ARK Invest founder Cathie Wood is a long-time Tesla TSLA –6.42% bull. Her 2026 price target for the electric-vehicle maker’s shares is $4,600. Tesla, though, isn’t the largest holding in ARK Innovation ETF anymore.
That distinction now goes to video streaming streaming service provider Roku ROKU –2.76% (ticker: $Roku Inc(ROKU)$). It accounts for about 8.4% of ARK Innovation’s holdings. Tesla ($Tesla Motors(TSLA)$) accounts for about 8.2% of the fund.
The rest of the top five holdings are: Zoom Video Communications ZM –1.32% ($Zoom(ZM)$) at 7.9%, Exact Sciences ($Exact Sciences(EXAS)$) at 5.9% and Block SQ –4.25% ($Block(SQ)$) at 5.7%.
Tesla doesn’t seem to have lost its top spot as part of an explicit trading strategy. Recent stock market performance has changed the relative rankings. Coming into Friday trading, Tesla stock has dropped 27% over the past month. Roku has declined only 12%.
Tesla stock has been battered by the tech selloff. CEO Elon Musk’s potential purchase of Twitter ($Twitter(TWTR)$) also has become an overhang on the shares. Tesla stock is down about 38% since Musk’s initial Twitter stake was disclosed. The S&P 500 and Nasdaq Composite have fallan about 15% and 22% over the same span.
Investors appear to be worried about how much Musk has on his plate. He runs Tesla, SpaceX, The Boring Company and Neuralink. Musk took to Twitter on Friday to reassure Tesla shareholders than Twitter was only taking about 5% of his time and Tesla was on his mind 24/7.
The decline in Tesla stock, along with other high-growth names, has hurt Wood’s fund. ARK InnovationARKK $ARK Innovation ETF(ARKK)$–1.44% is down about 23% over the past month and about 55% year to date.
Investors have shunned the highest growth, more speculative stocks as interest rates have risen. High-growth companies generate most of their earnings far in the future and higher interest rates make those earnings worth less when discounted back to today. That’s one reason why rising rates tend to hurt richly valued stocks more than others.
Tesla stock was is up about 2.3% in premarket trading on Friday. Roku shares have gained about 2.5%. S&P 500 and Dow Jones Industrial Average futures rose up about 1.1% and 0.9%, respectively.
Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.
- x2espresso·2022-05-22tesla has been always an overvalue stock. illogical for stock investment but for trading yes5Report
- labbiT·2022-05-22Thanks for sharing1Report
- Pompuri91·2022-05-22Is it a good time to buy Tesla now?5Report
- 叫我發先生·2022-05-22Heng heng, pls give me a like5Report
- skyel·2022-05-22But she earned when Tesla hit 1k2Report
- hd87·2022-05-23Thanks for sharing. Hope someone can help me like this comment :)2Report
- Snakewood·2022-05-23by value? 🤔🤔🤔 wait till tsla bounces back up... 😬😁🙏🙏🤞🤞LikeReport
- 建稳的朋友·2022-05-25谢谢分享LikeReport
- hiiiinvestor·2022-05-24niceLikeReport
- Joseph Hito·2022-05-24greatLikeReport
- Choo wai nam·2022-05-23N1LikeReport
- zacklow·2022-05-23I see1Report
- Tgbdisciple·2022-05-23cool1Report
- u寶寶·2022-05-23[微笑]LikeReport
- Desw·2022-05-23[微笑]LikeReport
- champion6834·2022-05-23Hi1Report
- TSY123·2022-05-23OkLikeReport
- Starships2·2022-05-23👍🏼1Report
- 1588d1c0·2022-05-23Up1Report
- LOOI KIAN LIANG·2022-05-22🥹LikeReport