ARK Innovation ETF (ARKK-N)
NYSEARCA:ARKK
51.50
1.48
(2.96%) 1d
Financials
Technical Analysis
This summary was created by AI, based on 1 opinions in the last 12 months.
The ARK Innovation ETF (ARKK) has garnered a reputation for its focus on disruptive companies, but recent expert reviews suggest a shift in perspective. Although it previously enjoyed significant market attention and success, there are concerns over its high valuation metrics, particularly its average price-to-sales ratio of 5.3x, which starkly contrasts with the S&P 500's ratio of just under 3x. Additionally, it's worth noting that ARKK does not hold shares in NVIDIA (NVDA), a key player in the tech sector that might influence performance. Experts highlight that many of the ETF's holdings are considered expensive, prompting a reassessment of its investment appeal in the current market environment. Overall, while ARKK embodies innovation, its valuation may not align comfortably with traditional investment standards.
ARKK went all-in into high-growth, high-risk tech stocks, but these trade as a group. So, in 2020 ARKK was the number-one fund, but struggled in 2021 and was far from the best in 2022. A fund or collection of stocks that is not diversified will eventually stumble.
She was the world's greatest stockpicker in 2020 when tech ruled. Not so these days. Why? Her portfolio lacks diversification, concentrated in only a few names.
The ARK funds have likely bottomed, on the basis that interest rates and inflation have peaked. Although, even if the fund has truly bottomed, it may trade sideways for longer than an investor can wait, and we would not expect the parabolic action that it saw in 2020 to occur anytime soon. The underlying companies in the fund are growing fast, but valuations are still on the high end, and we feel it will take a substantial shift in market sentiment to a 'risk-on' environment to see material gains in the name. With that said, we think the name can do well over a long timeframe, and we think investors will need to be patient here.
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ARKK vs. FNND Such growth stocks are vulnerable to inflation and the discount rate. They will struggle and have already declined a lot, and shares are still not cheap. There's not much difference between these ETFs. ARKK has performed better this year, so he skews towards that.
Down 77% since highs. Disruptive names that were the flavour of the day, but now affected by rising rates. Names with high multiples, high growth. Can only perform well in a falling interest rate environment. Possible tax-loss sale.
Sell ARKK to add to ZQQ? Good idea. ZQQ is a broader universe. ARKK is more of an innovator-type fund, lots more risk. Whole semi side is very difficult. Oversupply and under-demand, and so the price of memory chips is coming down. He'd recommend trading the ZQQ.
Tesla is ARK's largest holding at 8.69% which has bounced from its 52-week low of $700 on February 24 to the current $864 (March 1). Its PE has always been astronomical (176x), but buyers of this stock suspend ordinary stock metrics in favour of faith in CEO Elon Musk and his vision of the automobile future. That faith remains. Expect Tesla to keep climbing. You can't say that about ARK's second-biggest holding, Teladoc, which is tanking as the pandemic fades and consumers rely on telephone medical services less. Streamer Roku was also considered a pandemic play and has oversold, but that too is recovering since bottoming on February 24. Other big holdings in ARK include Block (Square) whose recent numbers have launched a renaissance in a stock once left for dead.
Run by Cathie Wood, the mnost successful money manager on 2020 who invests in high-growth tech stocks. Their glaring flaw was a lack of diversification, which is why her ETF hot hammered this year when tech fell out of fashion. In May, Ark saw negative fund flows for the first time in over a year. ARKK is one Wood's largest ETFs. ARKK is down 5% YTD while the indexes are up. Her holdings like Zoom Video are considered Covid stocks. Wood, though, remains a wizard. Her small funds have performed better than the benchmarks and remains a fantastic long-term performer. But the era of Wood propping up these hyper-growth stocks with her massive inflows is over.
ARK Innovation ETF(ARKK-N) Rating
Ranking : 3 out of 5
Bullish - Buy Signals / Votes : 0
Neutral - Hold Signals / Votes : 0
Bearish - Sell Signals / Votes : 1
Total Signals / Votes : 1
ARK Innovation ETF(ARKK-N) Frequently Asked Questions
What is ARK Innovation ETF stock symbol?
ARK Innovation ETF is a American stock, trading under the symbol ARKK-N on the NYSE Arca (ARKK). It is usually referred to as AMEX:ARKK or ARKK-N
Is ARK Innovation ETF a buy or a sell?
In the last year, 1 stock analyst published opinions about ARKK-N. 0 analysts recommended to BUY the stock. 1 analyst recommended to SELL the stock. The latest stock analyst recommendation is . Read the latest stock experts' ratings for ARK Innovation ETF.
Is ARK Innovation ETF a good investment or a top pick?
ARK Innovation ETF was recommended as a Top Pick by on . Read the latest stock experts ratings for ARK Innovation ETF.
Why is ARK Innovation ETF stock dropping?
Earnings reports or recent company news can cause the stock price to drop. Read stock experts’ recommendations for help on deciding if you should buy, sell or hold the stock.
Is ARK Innovation ETF worth watching?
1 stock analyst on Stockchase covered ARK Innovation ETF In the last year. It is a trending stock that is worth watching.
What is ARK Innovation ETF stock price?
On 2025-03-21, ARK Innovation ETF (ARKK-N) stock closed at a price of $51.5.
Had its day in the sun a few years back. A disruptive ETF, not like your typical large-cap ETF. A lot of the names are expensive; average price to sales is 5.3x, pricey. Compare that to the S&P trading at just under 3x price to sales.