There’s no doubt that Cathie Wood’s ARK Innovation Fund (ARKK) took a beating this year. However, Cathie Wood doesn’t see much reason to change course. She’s closing out the year just as she began it – by buying electric car titan Tesla (NASDAQ:TSLA) and cryptocurrency exchange Coinbase (NASDAQ:COIN) by the double handful.
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This week alone, ARK Innovation picked up over 22,500 shares of Tesla, valued at around $3 million at current prices. Further, the ARK Fintech Innovation fund (ARKF) landed another $5.5 million worth of Coinbase shares. Those weren’t the only purchases that ARK funds made; Roku (NASDAQ:ROKU), Roblox (NASDAQ:RBLX), and DraftKings (NASDAQ:DKNG) were also added.
Interestingly, there’s a common thread between Tesla and Coinbase. Both firms are near their lowest points. While Wood has certainly lost big on purchases of Tesla and Coinbase previously, it seems that ARK is looking for these firms to make a comeback in 2023. Or at least enough of a comeback to make some profit happen. This year saw shares of Coinbase fall roughly 86%, while Tesla has lost around 65%. With a troubling macroeconomic picture and some potential geopolitical issues ahead, both may have trouble gaining traction this year.
Wall Street, meanwhile, doesn’t seem especially concerned. Analyst consensus considers both Tesla and Coinbase as Moderate Buys. Tesla’s average price target of $267.07 gives it an upside potential of 117.95%, while Coinbase comes with an upside potential of 102.39%, thanks to its average price target of $71.06.
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