Cathie Wood, the mastermind behind ARK Investment Management, has emerged as a titan in the realm of capital management. Her investment focus hones in on revolutionary sectors like genomics, artificial intelligence (AI), robotics, clean energy, and blockchain technology. Wood’s recent decision to bolster her flagship fund’s position in Tesla (TSLA) amid the stock’s downturn has sparked considerable interest, with the Ark Innovation Fund (ARKK) now boasting a stake valued at $628 billion. At 9.75%, TSLA reigns as the largest ARKK holding by a considerable margin.
While Cathie Wood remains steadfast in her belief in Tesla, other analysts have pivoted away from the stock due to signs of growth deceleration within the EV company. Currently, TSLA carries a “Hold” consensus rating from the 30 analysts covering it, a downgrade from its previous status as a “Moderate Buy.”
Among Wood’s other prominent ARKK holdings, CRISPR Therapeutics AG (CRSP), Roblox Corporation (RBLX), and UiPath Inc. (PATH) stand out with more favorable ratings on Wall Street.
Let’s delve deeper into these standout stocks.
The Breakthrough of CRISPR Therapeutics
Hailing from Switzerland, CRISPR Therapeutics AG (CRSP), boasting a market cap of $4.7 billion, operates as a gene editing powerhouse focused on developing gene-based medications to address an array of genetic disorders, cancer, and other ailments. Their CRISPR-based therapies aim to rectify the root mutations causing these genetic disorders, promising potential cures rather than mere symptom management.
At the close of last week, the ARK Innovation ETF owned 5.65 million shares of this cutting-edge biotech company, placing CRSP as the 6th largest ARKK holding by weight at 4.92%.
Over the past six months, Crispr has seen a substantial rise of 38.3% in its share value.
Crispr achieved a significant milestone with the approval by the U.S. Food and Drug Administration (FDA) of its groundbreaking product, Casgevy, utilizing CRISPR/Cas9 gene editing, for treating sickle cell disease (SCD) in the fourth fiscal quarter and transfusion-dependent beta-thalassemia (TDT) on January 16.
CRISPR’s Q4 earnings report, which surpassed expectations, was largely driven by the approval of Casgevy. Revenue surged to $201.2 million, with earnings reaching $1.10 per share, exceeding Wall Street’s estimates for a quarterly loss. Bolstered by around $1.7 billion in cash and $200 million in milestone payments from Casgevy’s approval, CRISPR remains debt-free courtesy of its partnership with Vertex Pharmaceuticals (VRTX), setting the stage for further pipeline advancements.
CRISPR stock holds a consensus “Moderate Buy” rating. Among the 27 analysts providing recommendations for the stock, 13 advocate a “Strong Buy,” one leans towards a “Moderate Buy,” 10 suggest a “Hold,” one proposes a “Moderate Sell,” and two advocate a “Strong Sell.”
The average analyst price target for CRISPR stands at $88, indicating a potential upside of 59.8% from its current levels.
Roblox Corporation’s Interactive Landscape
Valued at $21 billion, Roblox Corporation (RBLX) operates as a developer and operator of an online entertainment platform in both the U.S. and international markets. Headquartered in San Mateo, California, Roblox provides a free toolkit called Roblox Studio for developers to craft 3D experiences, Roblox Client for users to explore them, and Roblox Cloud for platform infrastructure.
The ARK Innovation ETF holds 8.18 million shares of Roblox, making it the 7th most significant holding in ARKK by weight at 4.51%.
Roblox shares have surged by 11.6% over the past six months.
Trading at 7.74 times sales, Roblox’s valuation stands higher than peers like Electronic Arts (EA) and Take-Two Interactive (TTWO), which trade at around 4 times sales.
In its fiscal Q4 earnings release on February 7, Roblox reported revenue of $749.9 million, a 30% increase year-over-year. Bookings of $1.13 billion rose by 25%, with a net loss of $323.7 million, or $0.52 per share, narrower than anticipated. The platform witnessed an 18% growth in average monthly unique payers following successful launches on Sony’s PlayStation and Meta Platforms’ (META) Meta Quest virtual reality headset.
Roblox anticipates fiscal Q1 bookings in the $910 million to $940 million range, with revenue predicted to fall between $755 million and $780 million. The management aims for over 20% annual growth in revenue until at least 2027.
Maintaining a consensus “Moderate Buy” rating, Roblox Corp stock garnered favor among analysts. Out of 23 analysts offering recommendations for the stock, 14 categorize it as a “Strong Buy,” one as a “Moderate Buy,” six as a “Hold,” and two as a “Strong Sell.”
The average analyst price target for Roblox Corp stands at $48.55, indicating a potential upside of 37.4% from its current trading levels.
UiPath Inc.’s Automation Frontier
Based in New York, UiPath Inc. (PATH) provides an enterprise-centric platform for streamlining business processes, catering to firms across various sectors such as healthcare, telecom, finance, and banking. With a market cap of $10.8 billion, UiPath offers solutions that automate tasks.
The ARK Innovation ETF owns 19.27 million shares of UiPath, ranking it as the 5th highest ARKK holding by weight at 5.69%.
UiPath’s stock has seen a healthy rise of 16.9% over the past six months.
Currently trading at 8.32 times sales, UiPath’s valuation remains below its five-year average of 11.69 times sales.
In the fiscal Q4 report, UiPath disclosed adjusted earnings of $0.22 on March 13, surpassing consensus estimates of $0.16. Revenue witnessed a 31.3% annual upsurge to $405.3 million, exceeding Wall Street forecasts. As of January 31, the firm’s cash, cash equivalents, and marketable securities stood at $1.9 billion.
For fiscal 2025, UiPath anticipates revenue between $1.55 billion and $1.56 billion. Analysis on UiPath foresees reaching GAAP profitability by fiscal 2026.
UiPath’s stock holds a consensus “Moderate Buy” rating. Of the 19 analysts providing recommendations for the stock, eight advocate a “Strong Buy,” one favors a “Moderate Buy,” and 10 suggest a “Hold.” Recently, KeyBanc assumed an “Overweight” rating on PATH, highlighting the firm’s formidable presence in the robotic process automation (RPA) and automation sectors.
The average analyst price target for UiPath stands at $27.29, indicating a potential upside of 45.5% from its current trading levels.