Cathie Wood's Ark Innovation ETF typically outpaces the overall market to the upside and downside. Last week, the S&P 500, Dow Jones and Nasdaq had their best gains of 2023. But the Ark Innovation ETF had its best week ever, up 18.6%.
Credit massive moves among key components. Verve Therapeutics, exploded for a 76% weekly gain on an expanded Eli Lilly partnership. VERV stock is a relatively small ARKK hold. Roku stock, now the No. 1 holding in ARKK, vaulted 50.4% last week, thanks to robust Roku earnings results.
Coinbase, Square-parent Block, DraftKings, Crispr Therapeutics, Shopify, Intellia Therapeutics, Beam Therapeutics, Gingko Bioworks and Palantir Technologies all surged more than 20%.
Like Roku, these names rallied on strong earnings, positive news such as FDA progress or new partnerships, or bullish events from rivals.
Several of these stocks, including Roku, DraftKings, Shopify and PLTR stock flashed aggressive buy signals in the past week, with COIN stock near an entry.
Tesla, closely tied to Cathie Wood and ARKK, had a solid week, up 6.1%.
DKNG stock is on IBD Leaderboard, with SHOP stock on the Leaderboard watchlist. DraftKings is on the IBD 50 and was Friday's IBD Stock Of The Day.
ARKK Innovation Big Stock Winners
| Company | Ticker | Gain in week ended Nov. 3 | ARKK weighting |
|---|---|---|---|
| Roku | ROKU | 50.40% | 9.38% |
| Coinbase | COIN | 21.22% | 9.13% |
| Block | SQ | 21.64% | 5.04% |
| DraftKings | DKNG | 26.69% | 3.99% |
| Crispr Therapeutics | CRSP | 31.62% | 3.76% |
| Shopify | SHOP | 32.48% | 3.49% |
| Intellia Therapeutics | NTLA | 24.18% | 3.11% |
| Gingko Bioworks | DNA | 21.48% | 2.84% |
| Beam Therapeutics | BEAM | 31.53% | 2.03% |
| Palantir Technologies | PLTR | 25.35% | 1.80% |
| Verve Therapeutics | VERV | 76.24% | 0.56% |
| ARK Innovation ETF | ARKK | 18.59% |
Roku Stock
Roku reported a wider-than-expected third-quarter loss after the close on Nov. 1. But other metrics were upbeat for the streaming platform. Roku's EBITDA, revenue and new users all exceeded targets.
Roku stock rocketed 30.7% on Thursday, vaulting above the 50-day moving average and clearing an aggressive trendline. Shares leapt 8.6% on Friday, capping a 50.4% weekly gain in huge volume.
As a result, Roku is now the No. 1 holding in Ark Innovation, vaulting above Coinbase and Tesla stock.
Investors could have bought Roku stock on Thursday, but it's now nearly 19% above the 50-day line. While it's working toward a 98.44 consolidation buy point, ideally it would forge a handle.
Coinbase Stock
Late Wednesday, Coinbase started offering crypto futures to eligible U.S. retail customers.
Late Thursday, the cryptocurrency exchange reported third-quarter results. Coinbase nearly broke even in the third quarter, easily beating views. Revenue rose 14%, ending a six-quarter string of double-digit declines. Trading volume continued to plunge.
COIN stock rose every day last week. Shares gapped up 8.7% on Thursday, following the crypto futures news, then climbed slightly on Friday.
More broadly, Coinbase stock has perked up recently along with Bitcoin and various crypto plays on growing expectations that the SEC will approve a spot Bitcoin ETF.
COIN stock ended the week at its best close in nearly three months. Shares tested a downward-sloping trendline, with the Oct. 21 high of 89.40 just above that. Those areas could serve as early entries in a deep consolidation with an official 114.43 buy point.
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Cathie Wood Stock: Square Parent Block
Square-parent Block beat third-quarter views Thursday night, while providing bullish EBITDA guidance for 2024.
SQ stock gapped up 10.7% on Friday, clearing a tumbling 50-day line and capping a 21.6% weekly advance. Shares are still far below their 200-day line. On Oct. 30, Block stock hit its worst level since the March 2020 Covid crash.
DraftKings Stock
DraftKings reported a smaller-than-expected Q3 loss Thursday night, with 57% revenue growth and user gains also beating.
DKNG stock shot up 16.5% on Friday to 33.75, its best close since December 2021 and clearing several early entries. Investors could have taken advantage DraftKings stock on Friday morning, but is now significantly extended from its 50-day line.
The online betting giant is just below a 34.49 buy point, but ideally shares would pause and forge a handle before breaking out.
The relative strength line for DraftKings stock struck a high Friday, a bullish sign.
Cathie Wood Gene-Editing Stocks: Crispr, Verve, Beam, Intellia, Gingko
Crispr Therapeutics shot up 31.6% last week, thanks to big gains over the last three days. On Tuesday, CRSP stock was halted, as an FDA advisory panel reviewed its gene-editing therapy for sickle cell disease, co-developed with Vertex Pharmaceuticals. The FDA panel didn't vote on recommending approval, but the positive discussion boded well for a possible FDA OK in December.
CRSP stock reclaimed its 50-day line and is just below its 200-day line. That could act as an entry, but that would definitely be aggressive.
Early Tuesday, Eli Lilly agreed to buy Beam Therapeutics' rights to three gene-editing drugs from Verve Therapeutics. Lilly will pay $200 million cash and take a $50 million stake in BEAM stock. The deal also expanded Lilly's partnership with Verve.
VERV stock spiked 28% on Tuesday and 76.2% for the week, surging up toward the 200-day line. But a week earlier, Verve stock hit a record low.
BEAM stock jumped nearly 11% Tuesday and cleared its 50-day line Friday. But it's still well below the 200-day line. It hit a three-year low in late October.
Amid the upbeat gene-editing news, Intellia stock surged 24.2% last week and Gingko 21.4%. NTLA stock rebounded from a three-year low and DNA stock from a five-month low.
Crisper, Beam, Intellia and Gingko Bioworks are top-10 holdings of Cathie Wood's Ark Genomics ETF, with Verve also a notable component.
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Cathie Wood Stock Shopify
Early Thursday, Shopify easily beat third-quarter views for earnings, swinging from a small loss a year earlier. Revenue modestly topped views, with gross merchandise volume also topping.
SHOP stock spiked 22.4% on Thursday, vaulting above the 200-day and 50-day lines. Shares added 3% on Friday. Shopify stock surged 32.5% for the week after touching a six-month low on Tuesday.
The e-commerce software giant has a 67.60 double-bottom buy point, but closed Friday right around a trendline entry.
Palantir Stock
Palantir Technologies earned 7 cents a share in Q3 vs. 1 cent a year earlier, the data analytics firm said Thursday. Revenue rose 17% to $558 million. Both slightly beat views, fueled by commercial market revenue.
PLTR stock soared 20.4% on Thursday, gapping above the 50-day line. On Friday, shares jumped 5.1%, clearing a short-term high of 18.44. That offered an early entry, but Palantir stock closed more than 19% over the 50-day.
PLTR stock has a 20.24 consolidation buy point. Ideally, the AI play would forge a handle.
Cathie Wood Stock Buys And Sells
Cathie Wood's ARKK sold some DraftKings stock on Nov. 1 and 2, just before its big earnings jump. But ARKK also add to its CRSP stock position on Nov. 1, as Crispr began its surge. It also added some Intellia shares. Over the prior two weeks, Ark Innovation also bought more Beam Therapeutics and VERV stock
Please follow Ed Carson on X/Twitter at @IBD_ECarson, Threads at @edcarson1971 and Bluesky at @edcarson.bsky.social for stock market updates and more.
