From Nasdaq, Inc.:

Ark Invest, the investment firm managed by Cathie Wood, is making major changes with its largest holdings. Coinbase Global (COIN) has been on a remarkable run, increasing 391% last year and becoming Ark’s biggest holding in its flagship Ark Innovation ETF, and its entire portfolio of active ETFs. However, Ark has been systematically selling off shares of Coinbase since last summer and reducing its weight in its ETFs.

The team bought shares of Roku, which was recently on the outs but is now a top holding. Roku, the third-largest holding in the Ark Innovation ETF, is considered by Ark’s analysts to have potential for significant growth, which is why the shift was initiated in their holdings.

Despite Ark Invest’s aggressive sales of Coinbase shares, they remain highly bullish on the company’s future. In fact, Coinbase’s weight in Ark’s ETFs has increased substantially despite the sales. Ahead of Coinbase’s IPO in 2021, Wood forecast a five-year price target and believes that Coinbase will exceed that target.

Ark Invest is also optimistic about the long-term potential of Roku, setting a $605 price target with the potential for significant growth and success based on its revenue and EBITDA figures.

Roku has experienced growth challenges in the past, but in recent quarters, revenue has shown significant improvement year over year. The company’s future also looks promising due to factors such as lower inflation and rising interest rates.

Wood does have positions in Bitcoin and Roku, while Ark has positions in and recommends Bitcoin, Coinbase Global, and Roku.



Read more: Cathie Wood Is Selling Coinbase and Buying More of This Top Holding Instead