🚁 THESE STOCKS WILL FLY! | ARK Invest's NEW Drone Stocks (Q3 Review)
. Since this channel focuses a lot on their research, the goal is to see how ARK Invest is putting their money. Where their mouth is. And since theres just too much to cover in a single episode, Ive split the State of the ARK into a few episodes which Im releasing around the end of Quarter 3.. Im calling the whole series of episodes, ARK Week. So welcome to uh. The second week of ARK Week. Part one covered. The biggest changes to ARK Invests combined positions. Part two highlighted some of the biggest buys inside ARKW and ARKF. Ark: Invests funds themed around next generation, internet applications and Fintech innovations, as well as a pretty interesting inconsistency between them.. This is part three which covers ARKQ Cathie Woods, fund, themed around the autonomous revolution and ARKX the 6 month old space exploration. Fund.. You can watch these episodes in any order and timestamps are always enabled for your convenience.. In the previous episode, I mentioned a trend that Im finding very interesting. At the end of the quarter. Arkf had 38 stocks in it, a whopping 18 of which can also be found in ARKW. Thats 47 of ARKFs positions that can be found in ARKW as well.. If you compare by weight instead of just by stocks, that overlap is about 35, which is still nothing to sneeze at., For example, if Square stock, ticker symbol S, Q is 10 of ARKF and 4 of ARKW thats, a 4 overlap between the funds, because both funds Are at least 4 Square stock.
. We dont want the funds to overlap too much because well then theres less of a meaningful difference between them. What stocks and risks they expose you to and how their prices move over time right? Well, ARKQ and ARKX have an even bigger amount of overlap. ARKQ had 38 stocks in it at the end of the quarter and ARKX had just 35, 18 of which are the same stocks.. If you go by weight, these funds overlap by a whopping 47 still because of a few big positions that sit inside. Both funds like Trimble, Kratos, Defense and Security, UiPath Unity, Software, Iridium Lockheed Martin and several others. So Ill show you. The trades in each fund individually highlight the ones they have in common and then Ill wrap up with my commentary, which I always try to keep separate from my overviews of the data. So you can make your own unbiased data driven decisions.. One final note: before diving into the data I was on vacation for the last 5 days.. It was actually the first vacation Ive taken since becoming a full time, investor and YouTuber.. So some of the numbers Im showing may be slightly different from the previous ARK Week. Episodes because Ive updated them to include the last two trading days of the quarter.. As always, you can find a link to download the full State of the ARK presentation for free at ticker symbol. You dot com using the URL on your screen right now and Ill leave a copy in the description below as well.
Theres. No catch here, Im just building a website with the community, so that no one has to hunt through youtube video descriptions to find what theyre. Looking for. Great. Now that all of quarter 3s trading days are accounted for heres how the assets under management of each fund have changed.. On July, 1st 2021 ARK Invests funds totaled just over 49 billion dollars. Combined.. On October, 1st, before market open, Cathie Woods, combined funds had under 38 billion dollars in them, marking a whopping 23 decrease in total assets under management.. This should give you a good sense of how rocky and volatile these funds are, as well as how fickle some people who claim to be long term. Investors can be. Thats, not a dig on anyone. Im saying that, because for every person who sells low theres someone buying low on the other side right When you pick and choose companies to invest in, you need to be ready for the volatility that comes with that choice. Unless you want to be on the wrong side of those trades. Weve all been there., The point is to do better next time. Anyway, here are the updated numbers for each fund at the end of the quarter. ARKKs assets under management dropped by almost 24 and are Now, back under 20 billion dollars in A U M., ARKG dropped a whopping 27 from almost 10 billion dollars at the start of the quarter, down to 7 billion dollars by the end.
ARKW and ARKF each dropped by about 20. And as for ARKQ and ARKX, which Are the focus of this episode, their assets under management dropped by about 20 and 14 respectively.? The reason I always cover assets under management first is because thats the baseline for looking at the changes in ARK Invests positions inside each fund. Heres the table of Cathie Woods positions inside ARKQ.. Each row is one stock. The rows are ordered by the size of that stocks position in ARKQ and the rows are colored by the change in position over the quarter RELATIVE TO the change in ARKQs assets under management., Since the total amount of money inside ARKQ shrank by about 20. Since the start of the quarter, positions that are in white shrank by around 20 right in line with the fund. Green rows show positions that shrank by less than 20 meaning they grew relative to the fund and red rows shrank by more than 20 meaning they shrank Relative to the fund., Since Cathie Wood, cant control the prices of the stocks she buys the first column shows the percent change in her share count and the second column shows the percent change in share price, which are the two things that affect the total position size Of each stock., The numbers on the right show you each stocks rank in this ETF and how thats changed over the quarter, as well as its rank. When you combine all six ARK, Invest, ETFs.
Lower ranks are always better.. For example, Tesla is always Rank 1 in ARKQ, since its the biggest position. Teslas rank in ARKQ hasnt changed at all.. Its also ARK Invests biggest overall position, so rank 1 and that hasnt changed at all over the quarter. Either. Using this framework for analyzing ARK Invests data. All we have to do is look for is the darkest green rows. Simple right. For example, Cathie Wood, increased UiPath, ticker symbol, P, A T H inside ARKQ by over 75.. As a result, its now the 4th biggest position in the fund increasing 6 ranks from where it was at the start of the quarter., The amount of UiPath shares held in ARKQ actually more than doubled, while its price dropped by almost 25.. Now that Ive gone through how to read the data, let me highlight the other biggest changes. Unity, Software, ticker symbol. U Komatsu, K M T? U Y Aerovironment A V, A V and Blade Air Mobility B. L D E all saw substantial increases in position size over the quarter.. If we look toward the bottom half of the fund by weight, we can also add Markforged, M K, F G Archer Aviation, A C H, R and Palantir ticker symbol, P, L T R to the list because they got added after the start of the quarter, making Them huge position increases. Just for clarity, Cathie Wood added 26 million dollars worth of Palantir to ARKQ this past quarter, while only adding about 10 million dollars worth of Proto Labs, ticker symbol, P, R, L B, which is the position immediately above it.
. The reason Palantirs row isnt darker green is because there was no data to compare it to at the start of the quarter.. Interestingly, every company I just mentioned except Unity. Software is trading at a lower price today than they were 90 days. Ago. Im, not a financial advisor and this isnt an endorsement to buy or sell any security or fund.. The fact that Cathie Wood is loading up on these companies AND theyre cheaper now than 90 days ago tells me that I should throw them on my watch list and do some extra research, not that I should make any impulsive decisions. Heres the table of Cathie Woods. Current positions inside ARKX. ARKX only dropped by about 14 for the quarter instead of 20, like ARKQ, but otherwise. Im looking at the changes, the exact same way.. Remember that overlap thing I was talking about earlier. Let me uh just highlight the biggest changes for you.. We have Unity, Software, ticker symbol; U Aerovironment A V; A V; UiPath P; A T, H, Blade Air Mobility B, L D E Markforged M K, F G, Archer Aviation, A C H, R and Palantir ticker symbol; P, L, T R.; No, you didnt accidentally hit the Rewind button those were the biggest purchases in both funds over the quarter., Now Im being a little cheeky here, because Joby Aviation, ticker symbol, J, O B Y got added to ARKX and not ARKQ, but hopefully youre. Seeing my point about these funds overlapping by more and more.
, So lets talk about these positions.. Whether youve been following this channel for a while or youre just joining for ARK Week, youll be familiar with Unity. Software, UiPath and Palantir. Unity. Software sits inside every ARK, Invest fund except ARKG and ARKF.. On the other hand, UiPath and Palantir are the only two stocks to be in literally all six of ARK Invests funds. Because of that I heavily featured them in the first episode of ARK Week and Ive. Put out dedicated deep dive videos on each of them., I put together one convenient playlist of all my stock market, deep dives for you. Ill leave that, in the right hand, corner of your screen right now and in the description below as well.. So let me highlight the four other stocks that Cathie Wood has loaded up on in both ARKQ and ARKX over the last quarter. Aerovironment ticker symbol. A V. A V is a drone manufacturer that focuses on building small and medium unmanned aircraft systems, as well as technical missile systems such as GPS, guided artillery shells. Their non missile systems. Do things like relay communications surveil, a given area, track things on the ground map out a region and more.? In my opinion, the biggest risk to Aerovironment is the fierce competition in the drone space, especially in the defense industry, where there are massive companies providing drone solutions of all kinds. Right now. Aerovironment is focused primarily on government contracts, but they also put out media about entering the agriculture market, which certainly is a beneficiary of drone technologies.
, Because Aerovironment focuses on smaller form factors, though their drones could be suited to lots of other industries even beyond agriculture.. Im excited to see what they come out with over the next few years. As we see the adoption of drone technologies continue to uh, take off. Get it Take off. You know like cut screen Blade Air Mobility, ticker, symbol B, L D E is currently a helicopter seat, booking company that carries passengers in crowded urban areas via helicopters, jets and seaplanes.. The big idea is skipping dense city traffic to get where you need to go in a fraction of the time for a competitive price.. Their future is all about progressing into the urban air mobility space via electric vertical take off and landing vehicles or E VTOLs.. The reason for that is because a major limiting factor for the growth of urban air mobility is the amount of noise helicopters generate along their flight paths, and EVTOLs are much quieter.. Just like Uber has on the ground. Blade is developing the infrastructure and routes and brand recognition with customers, while keeping their own company asset light. And just like Uber pays drivers for their time and vehicle costs Blade has to pay aircraft operators. The same way. Blade is a former SPAC that has shown consistent growth, but is currently still trading at around its 10 dollar SPAC price, after landing back on earth from a sky high 18 dollars per share earlier this year, which was something like a 1 and a Quarter billion dollar market cap.
, Markforged, ticker, symbol, M K, F G is a 3D printer manufacturer and the creator of the Digital Forge an integrated metal and carbon fiber. 3D printing platform.. The Digital Forge uses machine learning, algorithms to learn from each print from any of their printers to fine tune. The next one. Their platforms are used by Google Tesla Amazon, the US Airforce and even NASA. Markforged greatly reduces the friction associated with learning to 3D print parts. From scratch, by using AI, to streamline every step of the process., They recently announced a piece of software called the Eiger Fleet, which gives organizations a secure and centralized control point for all of their Markforged 3D printers users and libraries of parts. Eiger Fleet is designed to Help manufacturers integrate additive manufacturing technologies into their existing workflows. Thats, a smart move, because a lot of legacy companies still see 3D printing as a huge investment to replace something that isnt really broken. But Markforged can start by securely augmenting existing capabilities and scaling. As customer adoption continues to increase over time. Archer Aviation ticker symbol, A C H R is designing and developing electric vertical takeoff and landing aircraft or EVTOLs for use in urban air mobility.. So its a flying taxi maker making a flying taxi called the Maker.. The Maker is a two person: 12 rotor aircraft, with a range of 60 miles, a top speed of 150 miles per hour and a cruising altitude of about 2000 feet., Like I pointed out with Blade Air Mobility.
Noise is a very important factor.. The Maker will only generate about 45 decibels of noise, which is about 100 times quieter than a helicopter. Theyre, also working on a five seater aircraft for groups.. Importantly, Archer just completed a reverse merger with the SPAC Atlas, Crest, Investment, Corp, ticker symbol, A C. I C in mid September and is now trading for well below the 10 dollar SPAC price after Archer Aviation and Atlas Crest agreed to cut the deal value by about 37 from 2.7 billion dollars to 1.7 billion.. This isnt really a big deal in the long term, since Urban Air Mobility and vertical take off and landing vehicle companies are probably at least 5 years away from generating real revenues. Anyway. Theyre currently still sitting under a 2 billion dollar market cap. So, basically, right at the value of their reverse merger, making it a good company to research further, while the price is still at ground, level.. So comment below or tweet me at ticker symbol you with your thoughts on these different aerospace and supporting technology stocks.. Are you interested in autonomous mobility in general or urban air mobility specifically, Do you want exposure to drones in your portfolio or do companies like Markforged appeal to you more because they can support a wide variety of industries and market sectors? Should I try to buy a consumer grade drone from a publicly traded company and test it out for the channel Im excited to hear your thoughts.
? As for me, after the previous episode of ARK Week, I was a little worried that Id be questioning. Why more and more stocks were included in ARK, Invests funds. Im happy to say. I think these stocks make a lot of sense for ARKQ because of the focus on robotics and autonomous mobility, and they definitely make sense in ARKX because of the clear ties to Sub orbital Aerospace.. I believe that drone and 3D printing technologies are definitely core technology platforms to these funds and would love to see them lean even harder into that theme.. The two reminders Ill throw out there are that urban air mobility companies are still several years away from being serious revenue generators AND that both ARKQ and ARKX are pretty niche funds, so make sure youre not overweighting your holdings in these types of companies just because they Make super cool physical products. Ive been guilty of that myself.. If we add Unity, Software, UiPath and Palantir back into the mix, we actually cover almost the entire value chain here, including making interactive visualizations automating a lot of the day to day processes and analyzing. All of the data associated with the whole enterprise of moving people and stuff through the sky. AND All of these stocks are trading for lower prices today than they were at the start of the quarter. Well, except for Unity Software. But we all know that. Ticker Symbol! U is only going to get more and more valuable as time goes.
On. Speaking of Ticker Symbol, You becoming more and more valuable dont forget that the full State of the ARK presentation is available for download for free at ticker symbol. You dot com using the URL on your screen right now and Ill leave a copy in the description below as well. Thanks for watching. Until next time. This is Ticker Symbol YOU, my name is Alex reminding you that the best investment you can make …