ARK Invest CEO Cathie Wood has never shied away from bold predictions. In February 2018, she put a $4,000 per-share price target on Tesla stock. That was before the split, but that price target implied a market cap of $720 billion. That prediction turned heads on Wall Street because Tesla was worth just $60 billion at the time. Not many analysts swing for the fences like that.

In hindsight, it appears Wood made the right call. Tesla is currently valued at $810 billion, and its market cap actually surpassed $1.2 trillion last year. The relative accuracy of the call has some investors wondering about another bold valuation model that ARK Invest recently published. This new report puts Roku (NASDAQ: ROKU) stock at $605 per share by 2026, implying an 850% upside.

Does Cathie Wood's prediction make Roku stock a buy?

Continue reading

Source Fool.com