This Top Cathie Wood Stock Just Got a Big Upgrade. Is It Time to Buy?

Ark Invest's Cathie Wood has established herself as one of the foremost growth-stock investors. Wood famously predicted Tesla would hit $3,000 per share (split-adjusted) back in 2018, which it did, and shares of her flagship Ark Innovation ETF (NYSEMKT: ARKK) doubled in 2020 as growth stocks and tech stocks rallied during the early stages of the pandemic.

While her funds have fallen over the last two years in the broader stock market sell-off, Wood's moves are still closely watched by many investors. Right now, one of her favorite stocks is Roku (NASDAQ: ROKU), the leading streaming-distribution platform. Roku is the second-largest holding in the Ark Innovation ETF (behind Coinbase), making up 8.6% of the fund, and it's also the second-largest holding in the Ark Next Generation Internet ETF (NYSEMKT: ARKW).

According to its forecast from last year, Ark's base case estimate calls for Roku to hit $605 per share in 2026, roughly a 470% gain from its current price. That forecast assumes Roku's active accounts reach 157 million by that year, roughly double the 75.8 million accounts Roku currently has. It also expects daily hours streamed per active account to increase from 3.6 currently to 4.5, while monetization per hour improves from $0.13 to $0.21.

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Source Fool.com