There aren't many fund managers as widely followed as Cathie Wood. The Ark Invest co-founder and CEO became a rock star in 2020 when her aggressive investing style yielded explosive returns. She has only gone on to trounce the market one more year since 2023, but when she's on, she's a force.
Wood also happens to publish the daily transactions made for Ark's exchange-traded funds, giving investors a glimpse into her investing strategy. What's she buying these days? She kicked off the new trading week by adding to her stakes in Roku (ROKU 3.89%), Teladoc (TDOC 1.72%), and Blade Air Mobility (BLDE +5.97%) on Monday. Let's take a closer look at these three purchases.
NASDAQ: ROKU
Key Data Points
1. Roku
"The thrill of victory, and the agony of defeat" was part of the popular opening for ABC's Wide World of Sports. Roku investors have lived it since last year. It was the thrill of victory in 2023 as Roku stock more than doubled when revenue growth accelerated sequentially through the first three quarters of the year.
The agony of defeat component has kicked in this year. Shares of the streaming video hub have plummeted 36% in 2024. The biggest culprit for Roku came in February when it offered up problematic financial results. Revenue growth decelerated, average revenue per user declined, and a new competitor emerged on the scene after agreeing to acquire a fringe player in Roku's space.
Image source: Getty Images.
Roku shareholders won't have to wait long for a shot at redemption. It will announce its first-quarter results next week. Expectations are surprisingly robust. Analysts see revenue growth accelerating again, up 20% for the first three months of this year. They also see Roku's quarterly loss being cut by more than half.
The platform is still growing its audience, and engagement remains strong. A healthy report and subsequent earnings call next week -- Thursday afternoon for those drawing circles on calendars -- could get Roku moving higher again. Ark Invest's Wood is buying ahead of the report.
NYSE: TDOC
Key Data Points
2. Teladoc
Teladoc isn't exactly the picture of health these days, and not even a change at the top has been able to generate a bullish pulse out of the telehealth services pioneer. The shares are now down a blistering 96% from the all-time high hit in early 2021. Teladoc stock hit a fresh seven-year low on Tuesday morning.
You don't have to look far to diagnose what's ailing Teladoc. It saw its business surge early in the pandemic when scoring a remote medical consultation was a big deal, but it didn't catch on once doctor and therapist offices reopened. Revenue has slowed for 11 consecutive quarters, and the number of telehealth visits clocked in at an 8% year-over-year decline in its latest quarter.
Teladoc announced on April 5 that CEO Jason Gorevic is stepping down. The board appointed an acting CEO while it searches for a permanent successor. A languishing stock often bounces back with a leadership change, but that wasn't the case here. Teladoc reports its first-quarter results on April 25. The numbers aren't likely to be pretty. You wouldn't cut your CEO loose if that were the case. However, the stock could bounce back later this month if it does offer encouraging news on new leadership.
NASDAQ: BLDE
Key Data Points
3. Blade Air Mobility
Another stock hoping to bounce back this year is Blade Air Mobility. The provider of high-end on-demand helicopter transport services saw its shares take a hit last month after posting disappointing fourth-quarter results and even less inspiring near-term guidance.
Specializing in helping affluent customers on short-distance treks to skirt traffic and the needy with essential human organ transportation, Blade turned heads when revenue more than doubled in fiscal 2021 and 2022. Business started to slow last year, including a weaker-than-expected 25% top-line gain in the fourth quarter it announced last month.
The $240 million to $250 million in revenue it's targeting this year is just a 7% to 11% increase, also shy of what the market was modeling. Blade sees a return to double-digit revenue growth in 2025. Losses also continue, but it has a cash-rich balance sheet that finds its enterprise value now lower than its trailing revenue.
Blade sees value in its stock, announcing a $20 million share buyback a week after its poorly received financial update. Wood apparently agrees, judging by her decision to add to her position.
