ARK continues to slide following Roku losses and selling off Coinbase shares

Yahoo Finance markets reporter Alexandra Semenova details the losses Cathie Wood’s ARK ETF is seeing amid Roku’s earnings miss, Teledoc investments, and sale of Coinbase shares.

Video Transcript

DAVE BRIGGS: Ark invest left out of this market rally we just discussed. Instead, some earnings implosions from both Roku and Teladoc this week left the fund reeling. The Innovation ETF has lost more than half its value this year. Alexandra Semenova is here with that story. It’s been a rough one.

ALEXANDRA SEMENOVA: It definitely has. A lot of investors are heading into the weekend in good spirits, but Cathie Wood probably is not one of them this week.

DAVE BRIGGS: Probably not.

ALEXANDRA SEMENOVA: Of course, two of her top holdings, Roku and Teladoc, are in the spotlight after reporting disappointing earnings and seeing their share prices just plunge this week. Roku specifically lost more than 20% today after disappointing results and even more disappointing outlook, even using the R word, talking about recessionary fears being an issue that the company is dealing with right now.

And of course, that led to a flurry of analysts that have downgraded the stock as well, further weighing on the share price. And this is the third top holding in Cathie Wood’s flagship ARK Innovation Fund. So, really dragging the performance down for this week. And I just want to note that Roku– Cathie Wood has a price target of $605 per share on Roku. It closed at around $65 a share today. So, a long way to go. And mind you, that price target is for 2026. Very ambitious target by Cathie Wood.

Another one, obviously, is Teladoc. Up today, but yesterday, also, lost about a fifth of its share price. Also dealing a blow to the fund, this is the ninth top holding in ARK Innovation. And yeah, she bought the dip on Teladoc yesterday. That did pay off today. But she has a trend of making stock selections that haven’t really–

SEANA SMITH: Yeah, Alexandra, tell us about that trend because she dumped Coinbase recently here after it’s had a troubling couple of months. She changed her position a couple of times on Tesla, recently buying on the dip. You just mentioned buying Roku on the dip. What do you make of that investment strategy?

ALEXANDRA SEMENOVA: Well, she has a very concentrated portfolio. Her strategy is to double down on her existing investments, which is why we often see her buying the dip on some of her stock picks, seeing her buy up shares of companies that are badly hit. But Coinbase is a good example of how buying the dip has not paid off for her so far. She bought up Coinbase shares at an average price of about $255 a share and sold them this week at a record low price of $53 a share.

The day after, the stock went back up. And, you know, she has a history of doing this. She bought up Shopify after the 10– the 14% drop that we saw earlier this week. We’ll see how that goes for her. But dip buying so far, not so good for Cathie Wood. Obviously, dealing a tremendous blow to her fund. As you mentioned, down more than 50% year to date.