Cathie Wood's ARK Investment buys 12.2K shares of Iridium today
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4 hours ago
- Yahoo
Why Cathie Wood Is Loading Up on This Hot Growth Stock (And Should You?)
In a market dominated by headlines about artificial intelligence (AI), cloud computing, and digital platforms, it is easy to overlook some of the most transformative developments in the life sciences. Cathie Wood, CEO of ARK Invest and known for her bold bets on disruptive innovation, has her sights set on Illumina (ILMN), a company that connects science and technology. On July 22, Wood's ARK's Genomic Revolution ETF (ARKG) bought 31,265 shares of Illumina, amounting to nearly $2.98 million, bringing the total investment in the company to $32 million. It is the ETF's 15th largest holding, comprising 2.8% of the overall portfolio. More News from Barchart UnitedHealth Stock Spirals Lower Again. Don't Buy the Dip. This Self-Driving Car Stock Is Surging on a Major Nvidia Boost Auto Revenue Keeps Plunging at Tesla. Should You Buy the TSLA Stock Dip or Run Far Away? Get exclusive insights with the FREE Barchart Brief newsletter. Subscribe now for quick, incisive midday market analysis you won't find anywhere else. Let's find out if investors should follow Wood's lead and buy Illumina stock here. A High-Conviction Bet on the Future of Medicine Valued at $16.6 billion, Illumina is a biotechnology company that specializes in genome sequencing, or the process of reading and analyzing DNA. It manufactures machines (sequencers), software, and chemical kits that are used to decode the genetic material (DNA) of humans, animals, plants, and bacteria. Illumina's technology is used in hospitals and clinics, by cancer researchers, pharmaceutical companies, agricultural scientists, academics, and research institutions, among others. Some of its products include the NovaSeq X Series, iScan System, iSeq 100 System, Illumina DNA Prep, Illumina Stranded mRNA Prep, and many others. Illumina's stock price has dropped significantly since its 2021 highs, falling from above $500 to around the $100-$120 range by mid-2025. Much of this decline can be attributed to a series of self-inflicted wounds, most notably its controversial acquisition of cancer detection company Grail. However, with the Grail divestment in 2024 and a new CEO, Jacob Thaysen, in charge, Illumina appears to be refocusing on its core business of making genome sequencing cheaper, faster, and more accessible. Why the Timing Matters Now Wood is known for buying when volatility is high, particularly when she believes the market has overcorrected due to near-term concerns. Following the Grail divestment, leadership change, and a multi-quarter slump in revenue growth, investor sentiment is bearish on Illumina stock, explaining the nearly 20% drop year-to-date. However, Wood saw this as an opportunity to stock up on this rising genomic star. Illumina's financial performance appears to be stabilizing. For a growth investor like Wood, who prefers to overlook short-term earnings volatility in favor of long-term potential, these improvements are a welcome sign that the company is on the right track. In the first quarter, while revenue growth dipped slightly by 1.4%, the company improved its margins and reduced unnecessary expenses. Illumina exceeded revenue expectations and reaffirmed full-year guidance. Adjusted gross margins increased to 67.4% as a result of improved manufacturing efficiency and lower R&D costs. Adjusted earnings per share fell to $0.97 from $0.98 in the prior year's quarter. Remaining performance obligations (RPO) totaled $891 million, of which Illumina expects to generate 83% in revenue over the next year. With a reasonable debt-equity ratio of 0.63x, Illumina's balance sheet is stable. The company also generated a positive free cash flow of $208 million during the quarter. Illumina will report its second-quarter earnings on July 31. Analysts expect revenue of $1.05 billion on earnings per share of $1.01. Analysts predict a 3% drop in revenue for the full year but earnings growth of 72.9% to $4.24 per share, with an additional 9.5% increase expected in 2026. Another factor that may have influenced ARK's decision to increase its stake in Illumina is valuation. The stock is currently trading at 22 times forward earnings for 2026 and three times forward sales. Illumina has the world's largest genomics dataset, giving the company a competitive advantage. Many of Illumina's future revenue streams, including large-scale population sequencing contracts and new clinical applications in oncology and rare diseases, are not fully priced into current projections. This reasonable valuation represents a buying opportunity for a growth stock with excellent long-term prospects. What Is Wall Street Saying About Illumina Stock? Overall, the consensus on Illumina stock is a 'Moderate Buy.' Of the 22 analysts covering the stock, nine recommend a 'Strong Buy,' one suggests a 'Moderate Buy,' nine rate it a 'Hold,' one says it is a 'Moderate Sell,' and two have given it a 'Strong Sell' rating. The stock is trading close to its average target price of $106.83. However, the high price estimate of $185 suggests a rally of over 76.8% from current levels. The Key Takeaway Wood's stake in Illumina is a calculated investment based on extensive research, long-term vision, and a firm belief in the power of genomics to transform healthcare. Now, with a lower cost structure, a clear path back to profit growth, and exciting new products on the market, Illumina is poised for a turnaround. For investors with patience and a long horizon, Illumina stock represents a one-of-a-kind opportunity to invest in genomic infrastructure. On the date of publication, Sushree Mohanty did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. This article was originally published on
Yahoo
4 hours ago
- Yahoo
2 Fintech ETFs to Buy With $2,000 and Hold Forever
Key Points Financial technology, or fintech, is making a comeback after a few tough years. From payment processing to cryptocurrency trading, there are plenty of opportunities in the space. Instead of picking individual fintech stocks, there are some excellent ETFs to consider. 10 stocks we like better than Global X Funds - Global X FinTech ETF › Financial technology, or fintech, was one of the worst performing parts of the stock market in the 2022 bear market and for the roughly two-year period that followed. During the COVID-19 pandemic, the economy turned to online payments, cashless money transfers, and cryptocurrency interest surged. When the pandemic-era restrictions ended, interest rates rose, and inflation hit the U.S. hard, many fintech companies struggled. However, we're slowly but surely starting to see a resurgence of fintech stocks in 2025. Just to name a couple of examples, banking disruptor SoFi (NASDAQ: SOFI) has seen member growth accelerate recently, and PayPal (NASDAQ: PYPL) has returned to user growth after a multiyear lull. There are some massive opportunities in fintech, to put it mildly. But this can also be a volatile industry to invest in. If you want fintech exposure in your portfolio but also aren't sur what individual stocks to buy, there are some excellent ETFs you might want to consider. Global X Fintech ETF The Global X Fintech ETF (NASDAQ: FINX) is one of the oldest fintech ETFs, and it tracks an index of companies that aim to transform the financial sector. Since its inception in 2016, the ETF has delivered 10.6% annualized returns, and that's after its 0.68% expense ratio is reflected. This is a weighted index fund, so generally speaking, larger fintech companies make up a larger percentage of the portfolio. Here's a look at some of the top holdings as of this writing: Company (Symbol) % of ETF Coinbase (NASDAQ: COIN) 9.76% Intuit (NASDAQ: INTU) 6.36% Fidelity National Info (NYSE: FIS) 5.75% PayPal 5.55% Adyen (OTC: ADYE.Y) 5.13% Data source: Global X. In short, this is a great way to get passive exposure to the Who's Who of fintech, and for a reasonable fee structure. Ark Fintech Innovation ETF The Global X ETF is a passive one, which means that it simply tracks an index of fintech companies and aims to match its performance over time, net of fees. On the other hand, the Ark Fintech Innovation ETF (NYSEMKT: ARKF), which has more than $1.2 billion in assets, is an actively managed fund. This means that portfolio managers (in this case notable tech investor Cathie Wood) select stocks with the goal of beating a benchmark. Because of the actively managed nature, there are two big portfolio differences. First, the definition of a "fintech stock" is a little broader. For example, the fund invests about 5% of its assets in Bitcoin (CRYPTO: BTC). Second, it's not just large fintech stocks that make up the top holdings. As you can see from the list of the top five holdings, there are some that are not large caps, and that are not traditionally considered to be fintech stocks: Company (Symbol) % of ETF Shopify (NASDAQ: SHOP) 9.30% Robinhood (NASDAQ: HOOD) 8.64% Coinbase (NASDAQ: COIN) 8.10% Circle Internet Group (NYSE: CRCL) 6.06% Roblox (NYSE: RBLX) 4.99% Data source: Ark Invest. The Ark Fintech Innovation ETF has a slightly higher 0.75% expense ratio, which is still quite reasonable for a highly specialized, actively managed fund. And it's worth noting that since the ETF's inception in early 2019, it has delivered annualized returns of nearly 16%. The bottom line is that these are both solid ways to invest in fintech stocks without trying to pick individual winners, but there are some big differences. If you want a broad fintech investment that should do very well no matter what companies win, the Global X fund could be the way to go, but if you're looking to have more exposure to smaller, high-potential companies and also can tolerate more volatility, the Ark ETF could be a better fit for you. Should you buy stock in Global X Funds - Global X FinTech ETF right now? Before you buy stock in Global X Funds - Global X FinTech ETF, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and Global X Funds - Global X FinTech ETF wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $634,627!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $1,046,799!* Now, it's worth noting Stock Advisor's total average return is 1,037% — a market-crushing outperformance compared to 182% for the S&P 500. Don't miss out on the latest top 10 list, available when you join Stock Advisor. See the 10 stocks » *Stock Advisor returns as of July 21, 2025 Matt Frankel has positions in PayPal, Roblox, Shopify, and SoFi Technologies and has the following options: short January 2026 $135 calls on Shopify. The Motley Fool has positions in and recommends Adyen, Bitcoin, Intuit, PayPal, Roblox, and Shopify. The Motley Fool recommends Coinbase Global and recommends the following options: long January 2027 $42.50 calls on PayPal and short September 2025 $77.50 calls on PayPal. The Motley Fool has a disclosure policy. 2 Fintech ETFs to Buy With $2,000 and Hold Forever was originally published by The Motley Fool Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
a day ago
- Yahoo
Could Roku Stock 10x by 2030?
Key Points Roku's recent advertising alliance has stoked optimism about the stock. Roku stock is down more than 80% from its all-time high. The once high-flying stock sells at a discounted valuation. 10 stocks we like better than Roku › In many respects, Roku (NASDAQ: ROKU) stock is a victim of varying expectations. Pandemic-driven optimism about its business model took shares to a high of more than $490 per share in 2021 before higher spending and falling expectations wiped out more than 90% of its value at one point. While Roku investors are somewhat more optimistic than they were at the low point, the stock still trades at more than 80% below its all-time high. However, Roku bulls such as Cathie Wood have predicted a significantly higher price for Roku stock, and with viewers continuing to turn to streaming from traditional TV, it is likely worth pondering whether Roku can rise more than tenfold by 2030. Roku's growth drivers Roku's streaming platform is drawing customers, streaming channels, and advertisers, aggregating these parties into one ecosystem. Also, it sells streaming players and TVs at a loss, drawing more viewers into its ecosystem. Its approach made it the top-selling TV platform in the U.S., Canada, and Mexico. Additionally, Roku has made significant strides in other Latin American markets and Europe, making it a formidable competitor to larger and better-funded peers such as Alphabet, Apple, and Samsung. Furthermore, despite competing with Amazon, Roku forged a partnership that gives Amazon and Roku access to each other's advertising audiences, producing the world's largest authenticated connected TV footprint. Consequently, advertisers reach 40% more viewers on the same budget while reducing repeat views of an ad, giving them more value from their ad spend. Investors should also note Roku's 2026 price target from Cathie Wood's Ark Invest: $605 per share. This forecast was driven primarily by expectations of video ad growth. Admittedly, Roku stock is unlikely to rise that much in less than a year and a half. Still, the fact that Roku is Ark Invest's fifth-largest position is a likely confirmation of its continued belief in the stock. Obstacles to tenfold growth Despite this optimism, Roku has disappointed investors since the stock plunged in the 2022 bear market. During that time, profits gave way to losses amid slumping ad spend, and the company does not expect a return to positive operating income until 2026. So while other tech growth stocks, such as Nvidia and Palantir, recovered and established far higher highs, Roku stock has not made any net gains over the last four years. Moreover, even with revenue growth remaining in the double digits, the increases have slowed since the pandemic. Roku also stopped publishing numbers for monthly active users and average revenue per user, another indicator that growth has not met expectations. Furthermore, investors should take note of valuation declines. Thanks to its ongoing losses, Roku does not have a P/E ratio. Still, the price-to-sales (P/S) ratio, which once topped 30 during the pandemic, now stands at just above 3, even with the optimism surrounding the Amazon deal. That valuation differential shows how far Roku has fallen, but it may also point to the stock's potential if it continues to recover. Could Roku 10x by 2030? Ultimately, five years is a long time, and nobody knows for sure whether Roku stock will increase tenfold over that time. Nonetheless, a turn to profitability and multiple expansion could help the stock accomplish that goal. While a simple return to a 30 P/S ratio would do it, that is unlikely in the short term. The stock also faces long odds of reaching Ark Invest's price target of $605 per share by the end of next year. However, investors should remember that Roku has remained competitive. Moreover, it has formed an alliance with one of its rivals, thus increasing its value as an advertiser. Additionally, Roku is on track to turn profitable during this five-year target. If revenue merely doubles in five years as Roku's stock price rises tenfold, its P/S ratio would be approximately 15, comparable to that of many tech growth stocks. Thus, while a tenfold gain in five years is unlikely, it can't be ruled out. Should you buy stock in Roku right now? Before you buy stock in Roku, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and Roku wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $641,800!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $1,023,813!* Now, it's worth noting Stock Advisor's total average return is 1,034% — a market-crushing outperformance compared to 180% for the S&P 500. Don't miss out on the latest top 10 list, available when you join Stock Advisor. See the 10 stocks » *Stock Advisor returns as of July 21, 2025 Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool's board of directors. John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool's board of directors. Will Healy has positions in Roku. The Motley Fool has positions in and recommends Alphabet, Amazon, Apple, Nvidia, Palantir Technologies, and Roku. The Motley Fool has a disclosure policy. Could Roku Stock 10x by 2030? was originally published by The Motley Fool
