These are the 10 most beaten-down stocks in Ark Invest’s flagship fund as momentum fades for innovative tech bets

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Traders work on the floor of the New York Stock Exchange shortly before the closing bell as the market takes a significant dip in New York, U.S., February 25, 2020.

  • Ark Invest’s flagship ETF has suffered a year-to-date decline of 24% as investors shy away from unprofitable tech companies.
  • Despite the decline, Cathie Wood has reiterated her view that innovation stocks are in value territory.
  • These are the 10 most beaten-down stocks in Ark Invest’s flagship Disruptive Innovation ETF.
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Investors in Ark Invest’s flagship portfolio have endured a tough 2021, with Cathie Wood’s ETF down 24% year to date while the S&P 500 is up about 23%.

The reversal in the once-hot ETF has occurred amid a rotation out of high-growth tech stocks that are often unprofitable, in favor of more stable companies that have a proven history of delivering profits despite economic uncertainty.

Now, what was once incredibly strong positive momentum for the tech trade has reversed to consistent negative momentum, leading to a nosedive of more than 80% from record highs. The sell-off has been compounded by the Federal Reserve’s recent decision to speed up the tapering of its monthly bond purchases, as well as its guidance for multiple interest rate hikes in 2022.

But Wood is staying bullish on her investment strategy of buying innovative companies with little to no profits. In a blog post on Friday, Wood said the stocks ARK Invest owns are now in “deep value territory” and predicted monster annualized returns of 40% over the next five years.

These are the 10 most beaten-down stocks in Ark Invest’s flagship Disruptive Innovation ETF as of December 20. All data was sourced from Koyfin

10. 2U, Inc

Ticker: TWOU
% Below 52-Week High: -66%
Market Capitalization: $1.6 billion

2U stock chart




9. Signify Health

Ticker: SGFY
% Below 52-Week High: -66%
Market Capitalization: $3.2 billion

SGFY chart

8. Teladoc Health

Ticker: TDOC
% Below 52-Week High: -69%
Market Capitalization: $15.3 billion

Teladoc chart

7. Editas Medicine

Ticker: EDIT
% Below 52-Week High: -70%
Market Capitalization: $2.0 billion

EDIT chart

6. Compugen

Ticker: CGEN
% Below 52-Week High: -71%
Market Capitalization: $380.0 million

CGEN chart

5. Materialise

Ticker: MTLS
% Below 52-Week High: -72%
Market Capitalization: $1.4 billion

MTLS chart




4. Invitae

Ticker: NVTA
% Below 52-Week High: $3.8 billion
Market Capitalization: -72%

NVTA chart

3. Robinhood Markets

Ticker: HOOD
% Below 52-Week High: -79%
Market Capitalization: $15.2 billion

Robinhood chart

2. Skillz Inc.

Ticker: SKLZ
% Below 52-Week High: -83%
Market Capitalization: $3.2 billion

Skillz chart

1. Berkeley Lights

Ticker: BLI
% Below 52-Week High: -83%
Market Capitalization: $1.3 billion

BLI chart



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