Tag: SQ

Unveiling Cathie Wood’s Top Stock Picks: Insights into ARK’s Portfolio

Cathie Wood, born Catherine Duddy Wood in 1955, is a prominent American investor and the founder, CEO, and CIO of ARK Investment Management, LLC. With a career spanning over three decades, Wood has become known for her pioneering work in thematic investing strategies. Before founding ARK in 2014, she co-founded Tupelo Capital Management, a hedge fund that managed approximately $800 million in global thematic investments.

Wood’s investment philosophy revolves around identifying disruptive innovation and investing in companies at the forefront of technological advancements. She gained widespread attention for her bold investment strategies and has been dubbed by some as the “Queen of the Bull Market”. 

ARK Investment Management focuses on capturing disruptive innovation in the public equity markets, offering investment solutions such as ETFs, mutual funds, managed accounts, model portfolios, and UCITS . ARK’s investment approach combines top-down and bottom-up research to identify innovation early and capitalize on opportunities.

ARK Invest gained prominence for its active management of thematic ETFs, notably the ARK Innovation ETF (ARKK). ARKK seeks long-term growth of capital by investing in companies at the forefront of disruptive innovation. The firm’s investment strategy encompasses innovative sectors such as artificial intelligence, genomics, fintech, and autonomous technology.

Regarding specific stocks, Wood has made bold predictions regarding Tesla’s (TSLA) stock price. Expressing optimism about Tesla’s future growth potential and has set ambitious price targets. Wood and her team at ARK Invest have a long-term price target of $2,000 for Tesla’s stock. Additionally, she has suggested that Tesla could potentially be worth more than $6,000 per share by 2027. Wood’s predictions are based on her belief in Tesla’s ability to dominate the market for “robotaxis” and the company’s potential to revolutionize various industries. Despite fluctuations in Tesla’s stock price, Wood remains optimistic about its long-term prospects and continues to invest in the company.

Price to Book Ratio: 8.69

PEG Ratio: 3.85

PE Ratio: 39.70

Price to Sales Ratio: 6.62

Forward PE Ratio: 42.48

ARK has invested in UiPath Inc. (PATH), a leading enterprise automation software company. As of the latest available data, UiPath is listed among ARK’s top holdings. This investment reflects ARK’s strategy of seeking opportunities in companies driving technological advancements and innovation in various sectors. UiPath’s position in ARK’s portfolio underscores its potential for long-term growth and disruption in the automation and robotics space.

Price to Book Ratio: 6.64

PEG Ratio: NA

PE Ratio: NA

Price to Sales Ratio: 9.94

Forward PE Ratio: 33.88

ARK has been notably bullish on Square Inc. (SQ), a financial services and mobile payment company. While specific details about ARK’s investment in Square may vary over time due to market fluctuations and portfolio adjustments, Square has been a significant holding in ARK’s portfolio. ARK has expressed confidence in Square’s potential for growth, particularly through its Cash App, which ARK believes could become a leading global consumer financial services provider.

Price to Book Ratio: 2.66

PEG Ratio: 240.39

PE Ratio: 13925.86

Price to Sales Ratio: 2.27

Forward PE Ratio: 18.95

ARK has been actively involved in investing in Roku Inc. (ROKU). According to SEC filings, ARK Investment Management LLC has periodically adjusted its holdings in Roku, indicating interest in the company. For instance, in December 2023, ARK reduced its stake in Roku by 12.7% during the third quarter of that year. Additionally, an SC 13G/A filing in January 2024 revealed that ARK Investment Management LLC held a 7.62% beneficial ownership in Roku Inc. While specific details about ARK’s current investment strategy and outlook for Roku may vary, these filings indicate ARK’s ongoing interest and activity in the company.

Price to Book Ratio: 3.92

PEG Ratio: NA

PE Ratio: NA

Price to Sales Ratio: 2.62

Forward PE Ratio: NA

ARK has shown interest in investing in Zoom Video Communications Inc. (ZM). In August 2023, Wood’s Ark Investment Management LLC funds acquired an additional 122,831 shares of Zoom, indicating a bullish stance on the company. Additionally, in June 2023, ARK funds purchased 53,958 shares of Zoom Video Communications, valued at $3.8 million. While specific details about ARK’s current investment strategy and outlook for Zoom may vary, these acquisitions suggest a positive sentiment toward the company.

Price to Book Ratio: 2.53

PEG Ratio: 21.41

PE Ratio: 32.11

Price to Sales Ratio: 4.48

Forward PE Ratio: 13.12

Wood is also known for her bullish predictions on Bitcoin’s price and has reiterated her belief that Bitcoin could reach $1.5 million by 2030. Wood’s optimistic outlook stems from her conviction in Bitcoin’s disruptive potential and its role as a hedge against inflation and currency debasement. She has previously stated that the base case for Bitcoin is $600,000, with a bullish case of $1.5 million by 2030. Wood’s predictions have drawn attention in the cryptocurrency space, with some investors closely monitoring her forecasts as they assess Bitcoin’s long-term potential. She continues to advocate for Bitcoin as a significant investment opportunity and a hedge against traditional financial risks.Bitcoin is currently priced above $60,000.

As a testament to her success, Wood has received numerous accolades and recognition for her contributions to the investment industry. She continues to actively manage ARK’s investment portfolios while also sharing her insights through various media appearances and presentations. She remains a key figure in the world of finance, admired for her innovative approach and dedication to disruptive technologies.

Throughout her career, Wood has demonstrated a keen ability to identify emerging trends and capitalize on them, leading to impressive returns for ARK’s investors. Despite occasional periods of volatility, she remains steadfast in her conviction about the long-term potential of innovation-driven companies. Wood’s influence extends beyond the financial world, as she is seen as a thought leader in innovation and technology investing.

Disclosure: Author had no positions in any of the above at the time the article was written.

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Top Bitcoin & Cryptocurrency Stocks

Maybe you have heard of cryptocurrencies but you’ve been concerned about investing in them. Or maybe you have dipped your toe into bitcoin, but want to diversify your crypto holdings in another asset class.

You might want to look into investing in cryptocurrency stocks. These are companies that either mine for crypto, own crypto, or provide ownership and trading services for cryptocurrencies.

Coinbase (COIN) is the largest cryptocurrency exchange in the United States. This $74 billion market cap company trades at 21 times trailing earnings and 47 times forward earnings.

MicroStrategy (MSTR) is a business intelligence company that has spent over $2.2 billion purchasing Bitcoin. The stock has a forward price to earnings ratio of 105.
PayPal Holdings (PYPL), the online payments company, now allows the purchasing and trading of cryptocurrencies. The stock has a trailing P/E ratio of 65 and a forward PE of 46.
Square (SQ ) is another financial services company that has invested about half a billion dollars in Bitcoin. It has a sky high trailing ratio of 225, but a forward PE of 103.
Marathon Digital Holdings (MARA) is a patent holding company which has purchased Bitcoin and Bitcoin mining equipment, and is involved in a joint venture to create a bitcoin data center. The stock has a forward PE of 12.
Voyager Digital (VYGVF) is involved in a digital platform to trade cryptocurrencies. The stock has a forward PE of 18.
Galaxy Digital Holdings (BRPHF) is a digital asset management company, which trades at 6.5 times trailing earnings and 13 times forward earnings.
Of course, you can alway buy a blockchain ETF, such asAmplify Transformational Data Sharing ETF (BLOK), which includes many of these stocks.

Also, stay tuned for a pure play bitcoin ETF that will invest in bitcoin directly.

Disclosure: Author has a long position in COIN and PYPL. 

Want to Invest in Tesla Convertible Bonds? Good Luck!

by Fred Fuld III

A convertible bond is a bond that can be converted into a fixed number of shares of stock in the company that issued the bond.

The advantages of convertible bonds

  1. It pays a fixed income, unlike a stock which can lower or eliminate a dividend.
  2. If the company goes out of business, the bondholders get paid off before the stockholders.
  3. The bond has growth potential because of the conversion factor into shares of stock.

The disadvantages of convertible bonds

  1. They are illiquid, with most not traded on any exchange.
  2. They are hard to find and not all brokers carry them.

Companies that issue convertible bonds

  • Tesla (TSLA)
  • Nio (NIO)
  • Zillow Group (Z)
  • Square (SQ)
  • Snap (SNAP)
  • Microchip Technology (MCHP)

Now try going to your broker’s website or try calling them and ask what the quote is on the Tesla 2% convertible bond. Good luck.

Convertible Bond ETFs

The easier way to invest in convertibles is through an an exchange traded fund that specializes in convertible bonds, such as the SPDR Bloomberg Barclays Convertible Securities ETF (CWB), which actually owns bonds from such companies as Tesla and Nio. It is up over 50% for the last twelve months. This ETF pays a yield of 2.34%.

Another convertible bond ETF is iShares Convertible Bond ETF (ICVT), which in addition to owning Tesla bonds, owns convertible bonds in Southwest Airlines (LUV), DISH Network (DISH), and Snap. For the last twelve months, it has increased by 58%.

First Trust SSI Strategic Convertible Securities ETF (FCVT) is a third option. The ETF owns Tesla, Zillow and Square convertible bonds, among others. This ETF is up over 52% over the last twelve months.

If you decide to get into convertibles, let’s hope they can convert your portfolio into profits.

Disclosure: Author owns Tesla.

35 Bitcoin, Blockchain, and Cryptocurrency Stocks

The news of the rise in price of cryptocurrencies has been ubiquitous during the last couple weeks, with  Bitcoin being the most popular. In simple terms, cryptocurrency is a digital currency which can be exchanged and traded as each transaction is encrypted and then verified independently of any centralized system or bank.

Due to of the lack of necessity for a third party system to verify the transaction, cryptocurrency was supposed to become a fast and simple way to exchange currency, due to what is called the blockchain.

Blockchain Technology

Companies and individuals have relied on an intermediary to ensure that there is a level of trust utilized into the transaction process. This includes authenticating the transactions and the transaction history. The blockchain technology is a distributed database that tracks and verifies all digital transactions. When a transaction occurs, it is grouped together in a block with other transactions that have occurred on the network within a short period of time, which are then validated.

The validation of each transaction occurs when a miner is able to utilize a high powered computer to solve a complex problem. Each transaction is encrypted, thus when the computer is able to solve the problem the transaction becomes decrypted and verified. Each time a transaction is verified it will result in a “reward” to a miner, (often in the form of a cryptocurrency such as Bitcoin) timestamp when the transaction occurred, and add it to a linear chain in a chronological order. This is the blockchain. When this is complete, the ledger is updated and copied across all of the networks to ensure that the latest ledger is always being used to verify each block.

Future Impact

The impact that the blockchain technology could have is significant. The elimination for the need of a third party to verify the transaction removes the need for intermediaries. This could pose an issue to portions of the government, banks, financial institutions, and other companies focused on handling financial transactions. The positive effect, however, that this technology could have on business efficiency on a global scale is enormous. A decentralized currency and financial system could help eliminate barriers that currently limit the way that many small businesses grow their consumer base. Since the blockchain technology is still in its infancy, there are many further applications that have not been explored yet. In the meantime, if you want a piece of the action there are a few ways in which you can be a part of this new wave of technology.

Cryptocurrency and How to Own It

For many new investors the best way to be a part of the action is to simply own some cryptocurrency, the most popular being Bitcoin. One of the most common platforms to purchase and trade Bitcoin is Coindesk. An account can be created where the cryptocurrency can be purchased and then sold at a later time.

There are other alternate coins that can be purchased through other cryptocurrency exchanges across the globe, such as Ethereum, and LiteCoin. And for those that are more tech savvy, purchasing equipment and hardware to mine cryptocurrency may be a desirable option. While it has become increasingly difficult to successfully verify a Bitcoin transaction, there are many alternate coins that can also be mined to produce a reward.

Bitcoin Stocks

For investors who prefer to invest in stocks, there are currently 35 publicly traded companies that are involved in Bitcoin, blockchain and cryptocurrency in some way. Many of these stocks are semiconductor companies, which benefit from the mining of cryptocurrency. Some are blockchain startups. And there is one Bitcoin closed end fund. Keep in mind that some of these stocks are extremely low cap and therefore extremely speculative. Here at WStNN, we have provided a free list of these stocks, that can be accessed here.

This activity regarding Bitcoin has major technology supporting it. And while it may just seem like the next Dot Com Bubble, the blockchain technology may transform the future of global commerce.