Cathie Wood and her flagship ARKK ETF are struggling in 2024, even as the Dow Jones and S&P 500 hit record highs and the Nasdaq composite set a two-year best.
It's not hard to see why. The 10 biggest holdings of the Ark Innovation ETF are all down so far this year.
Many are off by double digits, including the ARKK ETF's top two holdings, Coinbase and Tesla. ARKK's other big holdings are Roku, Zoom Video Communications, UiPath, Square-parent Block, Crispr Therapeutics, Twilio, Roblox and Unity Software.
Several of these stocks, including COIN stock and Tesla, had big gains in 2023. All rallied strongly with the broader market to end the year.
A few big Cathie Wood holdings, notably PATH stock and Twilio, are not far from buy signals.
ARKK ETF Top Holdings
| Company | Ticker | 2024 YTD chg |
|---|---|---|
| Coinbase | COIN | -28.27% |
| Tesla | TSLA | -14.60% |
| Roku | ROKU | -5.01% |
| Zoom Video Communications | ZM | -3.99% |
| UiPath | PATH | -10.51% |
| Block | SQ | -14.87% |
| Crispr Therapeutics | CRSP | -0.97% |
| Twilio | TWLO | -3.31% |
| Roblox | RBLX | -15.38% |
| Unity Software | U | -18.95% |
| Ark Innovation ETF | ARKK | -11.63% |
Coinbase Stock Top Cathie Wood ETF Holding
Coinbase stock is the top holding at Ark Innovation and across Cathie Wood's ETFs at Ark Invest. It's also by far the biggest loser among the major ARKK components in 2024.
COIN stock has retreated 28.3% so far in January, though that's after skyrocketing 391% last year.
Coinbase and other bitcoin stocks have moved with the digital currency, which rebounded powerfully last year in anticipation that the SEC would approve spot bitcoin ETFs. The SEC finally did so on Jan. 10. Several bitcoin ETFs began trading on Jan. 11, including the Ark 21Shares Bitcoin ETF.
But that spurred sell-the-news selling in bitcoin. Coinbase stock, which had already retreated from its 52-week high of 187.39 on Dec. 28, tumbled below the 50-day line.
Tesla Stock
Tesla stock has slumped 14.6% in 2024, skidding below all of its moving averages. Last year, shares more than doubled despite tumbling earnings and profit margins amid sharp price cuts. Still, TSLA stock has been trending lower since July.
Continued Tesla price cuts in 2024 and weakening EV demand generally have hit shares.
Tesla earnings for Q4 2023 are due on Wednesday night, but investors will be looking for guidance about 2024, especially margins.
Roku Stock
Roku stock ran 125% higher last year, including a 75% spike in November thanks to Q3 earnings results. Shares are down 5% in 2024, falling below their 50-day line. However, volume generally has been light.
Cathie Wood ETF Zoom Video Stock
Zoom Video stock is down 4% through Jan. 19.
Shares rose just 6.2% last year, but hit a record-low 58.87 in late October.
ZM stock once again hit resistance around 75 in late December and stumbled to start 2024. The video conferencing giant reclaimed the 50-day and 200-day lines on Friday.
Zoom stock has a cup-with-handle base, though there's no prior uptrend. Still, topping the 74.77 buy point would clear resistance going back 10 months.
However, it's a far cry from the October 2020 Covid peak of 588.84, with Cathie Wood riding Zoom on the way down.
Zoom earnings growth has returned in the past few quarters, but revenue growth is in the single digits.
UiPath Stock
UiPath stock has retreated 10.5% this year, but reclaimed its 50-day line on Friday. If the automation software maker can rebound from here, it should have a new base in a few days, perhaps with some early entries.
PATH stock broke out of a base on Nov. 29, then vaulted nearly 27% on Dec. 1 following earnings, clearing resistance going back more than a year.
ARKK Stock: Square-Parent Block
SQ stock has skidded 14.9% in 2024.
In late October as the market bottomed, Square stock hit its worst levels since the Covid crash in March 2020. But shares then doubled to 80.29 on Dec. 28 before retreating for several weeks.
The digital payments giant closed Friday just below its 50-day line.
SQ stock could be working on a handle to a consolidation going back to the end of July. Investors could also view this handle as an emerging base after the late 2023 rally. But Square has to build the right side of its handle/consolidation.
Crispr Stock
Crispr stock is off 1% so far this month.
Shares jumped in 2023, thanks to a 71% surge in November in anticipation of FDA approval for its gene therapy to cure sickle cell anemia. CRSP stock reversed sharply lower Dec. 8 on the FDA approval of the Crispr therapy, codeveloped with Vertex Pharmaceuticals. Shares have largely moved sideways since then, falling below a rising 50-day line last week.
A decisive move back above the 50-day line, perhaps crossing the Jan. 12 high of 67.08, would offer an early entry in a new consolidation.
Twilio Stock
Twilio stock has slipped 3.3% this year, but all the downside came in the first three trading days. TWLO stock found support at a prior buy point and the 10-week line, moving back above the 21-day line.
The real-time communications software maker is close to a new flat base, base-on-base structure. Investors could use a downward-sloping trendline or the Jan. 12 high of 75.37 as an early entry.
ARKK ETF Holding: Roblox Stock
Roblox stock has fallen back 15.4% in 2024 so far.
The gaming development software maker jumped in 2023, thanks to a near-doubling from late September to late December. RBLX stock has fallen back below the 50-day line but is still above the 200-day. Volume has been light in the retreat.
Unity Software Stock
Unity Software stock has tumbled nearly 19% this year.
Last year, shares gained 43%, but it was a choppy affair. Unity stock hit a 2023 low on Nov. 1.
In January, Unity Software has fallen to just below its 50-day and 200-day lines. Investors could view the past few weeks as the start of a deep handle to a six-month consolidation or the start of a new base following the late 2023 rally. But the gaming software firm has to start rebounding.
Unity Software is growing fast and expected to turn a profit in 2024.
Please follow Ed Carson on Threads at @edcarson1971, X/Twitter at @IBD_ECarson and Bluesky at @edcarson.bsky.social for stock market updates and more.
