Latest news with #InnovationETF
Mint
4 days ago
- Business
- Mint
Five signs of a market bubble investors are tracking
Stocks are doing crazy things again. The share price of online house flipper Opendoor Technologies has catapulted some 377% in the past month, despite a stagnant U.S. housing market. One of the biggest stock gainers Tuesday was Kohl's, a department store that has been losing ground to competitors for some time and has replaced its chief executive more than once in recent years. On Wednesday, the crowd favorites were unusual names such as GoPro and Krispy Kreme, with both the camera company and doughnut maker notching eye-popping gains over the week. Some investors say the action is the latest phase in what has turned into a near-euphoric rebound from April's tariff turmoil. Since the market tumbled and then turned higher, there has been a stampede into risky assets such as meme stocks, cryptocurrencies and shares of smaller companies that have yet to turn a profit. To some, this resembles a bubble—a period of frenzied market activity and speculation that artificially inflates asset values, driving prices to an eventual breaking point. 'A lot of us thought that the [spring] correction had to do with the fact that valuations were rather stretched back in January and February, yet here we are," said Ed Yardeni, president of Yardeni Research. 'It's almost like a slow-motion melt-up." Here's what investors are tracking for signs of froth: The return of YOLO bets recalls the heady days of 2021, when online traders briefly drove the fading mall retailer GameStop to a $24 billion valuation, before rising interest rates brought the bull market to an end. The housing market is stalled, and Opendoor shares traded under $1 earlier this month. They closed Friday at $2.54. The bets on Kohl's center on the potential sale of the company's real-estate holdings, which Wall Street has eyed for years. The stock has still slid more than 70% since the start of 2022. Unprofitability isn't much of an obstacle. Avis and Aeva Technologies, both of which reported net losses in the first quarter, are flying high. Of the 33 stocks in the Russell 3000 that have tripled in price since the market bottom in April, only six have generated profits over the past year, according to a Bespoke Investment Group analysis. Shares of the ARK Innovation ETF, a fund that includes a number of speculative companies operating at a net loss, have climbed more than 36% year to date. 'That in itself is not unhealthy," Callie Cox, chief market strategist at Ritholtz Wealth Management, said of the rise in speculative trades. 'When you get worried is when cracks start forming in the economy, yet you still have a huge appetite for speculation." Prices of Ethereum and bitcoin have soared in recent weeks, lifted by the Trump administration's pro-cryptocurrency policies and growing acceptance by mainstream financial institutions. But a new group of buyers has also pushed up prices: publicly traded companies that stockpile bitcoin, effectively transforming their own shares into a leveraged bet on the cryptocurrency. Those include Trump Media & Technology Group, which announced on Monday it had accumulated about $2 billion in bitcoin and bitcoin-related securities as part of a previously announced 'bitcoin treasury strategy." Critics caution that practice could amplify risks in the crypto market, deepening selloffs. Those warnings haven't deterred an estimated five dozen companies from pursuing similar strategies. Since stocks returned to their pre-April levels, the daily moves have been small. And the rally has expanded beyond the Magnificent Seven and other tech giants to include financial companies, industrial firms and communication services. The KBW Nasdaq Bank Index has climbed more than 7% over the past month, while shares of GE energy spinoff GE Vernova and advertising tech firm Trade Desk rose more than 20% in the same period. The number of stocks in the benchmark S&P 500 closing above their 50-day moving average is hovering at levels last seen in the fall, before the postelection 'Trump bump" in share prices. Analysts typically consider that kind of improving breadth a sign of a sustainable bull market. Yet stock valuations are stretched. The equity risk premium, defined as the gap between the S&P 500's projected earnings yield and the yield on 10-year Treasurys, is close to zero. That means that the extra return for owning stocks over lower-risk bonds has nearly vanished, which investors consider an unhealthy sign. Despite initial concerns that tariffs could kick-start inflation and drag on growth, the U.S. economy has kept chugging along. There are some signs of weakness: The annual inflation rate ticked up in June, as tariffs started to affect consumer prices. One basket of leading economic indicators recently pointed to slower growth in the second half of the year. But the increase in consumer prices has so far been modest, and economists' biggest worry—a sharp slowdown in the labor market—has yet to materialize. Such a shift could turn off the tap on U.S. consumer spending, effectively halting economic growth. Private-sector job growth has fallen to the lowest level in eight months. Hiring has slowed to a trickle, and college graduates are struggling to land roles. 'At a point where the job market is clearly weakening, it's interesting that we're seeing such optimism in markets," Cox said. 'When the job market starts slowing, it doesn't turn around easily." Write to Hannah Erin Lang at
Yahoo
22-07-2025
- Business
- Yahoo
Cathie Wood's ARK Loads Up on Ether Treasury Bet Bitmine Immersion
As ether (ETH) continues its record-setting rally, Cathie Wood's ARK Invest is making a bold bet on an ETH treasury play. The asset manager purchased 4.4 million shares of Bitmine Immersion Technologies (BMNR) across its ETFs on Monday, according to trade disclosures, marking a $116 million investment into the Peter Thiel-backed Ethereum treasury firm. ARK's flagship Innovation ETF (ARKK) received the bulk of the allocation with nearly 2.9 million shares. The move comes as Bitmine, helmed by Fundstrat's Tom Lee, cements its position as one of the largest corporate holders of ETH. The company has amassed over 300,000 ETH, worth more than $1 billion, and plans to stake up to 5% of Ethereum's total supply. It's a pivot that's drawn comparisons to MicroStrategy's bitcoin strategy and ignited investor interest in ether as a balance-sheet asset. Aside from the move into BMNR, ARK sold 218,986 shares of Coinbase (COIN) across its ETFs, a sale valued at $90.6 million. The crypto exchange had just posted an all-time high above $437 after the U.S. House passed sweeping legislation establishing a federal framework for stablecoins and digital assets. ETH is currently trading above $3600, according to CoinDesk markets data. Ether is up nearly 44% in the last two weeks.
Business Insider
20-07-2025
- Business
- Business Insider
TER, META: Cathie Wood Continues to Bet Big on Robotics, Trims Stake in This Tech Stock
Popular investor Cathie Wood's ARK Invest made key portfolio moves on Friday, July 18, with the spotlight on a major buy in the industrial automation space. As per ARK's daily trade disclosures, the largest transaction of the day was $3 million-plus purchase in Teradyne (TER). At the same time, Wood offloaded shares of technology stock Meta Platforms (META). Elevate Your Investing Strategy: Take advantage of TipRanks Premium at 50% off! Unlock powerful investing tools, advanced data, and expert analyst insights to help you invest with confidence. Make smarter investment decisions with TipRanks' Smart Investor Picks, delivered to your inbox every week. Wood Continues to Load Up on Teradyne Stock On Friday, ARK bought 39,792 shares of Teradyne, valued at $3.74 million. The buy was made through its flagship ARK Innovation ETF (ARKK). The transaction follows a sizable TER purchase on July 17 —84,000 shares for a total of $7.8 million. Teradyne is a major name in industrial automation and testing, a sector where Wood has been steadily building exposure amid rising interest in AI and robotics. With TER stock being down 25% year-to-date, Wood seems to be taking advantage of the pullback as a buying opportunity. What Is the Teradyne Stock Price Forecast for 2025? On TipRanks, Teradyne stock has a Moderate Buy consensus rating based on nine Buys, two Holds, and three Sell ratings. Also, the average TER price target of $97.15 implies a 3.44% upside potential from current levels. ARK Trims Stake in Meta Stock On the sell side, ARK continued to reduce its stake in Meta, offloading $1.5 million worth of shares through ARKK. This suggests ARK is reducing its stake in the social media giant. Year-to-date, META stock is up 20.5%. Additionally, ARK sold a small stake in Guardant Health (GH), trimming $141.6K worth of shares from its biotech-focused funds. Is Meta a Buy, Sell, or Hold? Turning to Wall Street, analysts have a Strong Buy consensus rating on META stock based on 41 Buys, four Holds, and zero Sells assigned in the past three months, as indicated by the graphic below. Furthermore, the average META price target of $743.69 per share implies 5.6% upside potential.
Yahoo
10-07-2025
- Business
- Yahoo
Cathie Wood's ARK Loads Up on Tempus AI, Cuts Roku and Block
July 10 - Cathie Wood's ARK Invest purchased 150,563 shares of Tempus AI (NASDAQ:TEM), worth about $8.8 million, according to a Wednesday regulatory filing with the SEC. The bulk of the buy flowed through the ARK Innovation ETF (ARKK), with the remainder acquired via the ARK Genomic Revolution ETF (ARKG). Tempus AI applies artificial intelligence to clinical decision?making, a focus area for Wood's disruptive?tech strategy. Warning! GuruFocus has detected 5 Warning Signs with TEM. At the same time, ARK trimmed its position in Roku (NASDAQ:ROKU), selling 50,823 shares, roughly $4.5 million, also via ARKK. This marks a second consecutive day of reductions in the streaming platform stock. The fund likewise pared back exposure to Block, offloading 56,503 shares worth about $6.5 million, as part of a broader pullback from fintech names. These moves illustrate ARK's ongoing pivot toward AI health plays and away from streaming and payments. This article first appeared on GuruFocus. 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
Hindustan Times
10-07-2025
- Business
- Hindustan Times
Ark Investment Management chief Cathie Wood sells $47.9 million of crypto stock
Cathie Wood, chief of Ark Investment Management, sold $47.9 million of a crypto stock over the past week after it surged 37% over the past month, as per The Street. Cathie Wood, CEO of Ark Invest, speaks during an interview.(Reuters) 2025 has been a year of highs and lows for Wood. Her investments saw good rallies when Trump was to take over as POTUS earlier this year. Given that Trump's relationship with Elon Musk was blossoming at the time, Wood's bets on Tesla, her biggest, rallied. But when the Trump-Musk relationship fell out, starting around March-April 2025, and tech stocks faced a slump, Wood's investments also suffered. As of July 3, the flagship Ark Innovation ETF (ARKK) is 23.4% year-to-date, taking over the S&P 500's 6.8% gain. Investment strategy Woods' primary strategy for buying shares has always been to target emerging tech companies in sectors like artificial intelligence, blockchain, biomedical technology and robotics. These companies, according to her, have the potential to reshape entire industries altogether. However, their volatility still poses higher risks of fluctuations in Ark's funds' values. "During the current turbulent transition in the U.S., we think consumers and businesses are likely to accelerate the shift to technologically enabled innovation platforms including artificial intelligence, robotics, energy storage, blockchain technology, and multiomics sequencing," Wood said in a letter published to her investors in late April where she tried to allay fears of the economy slipping into a recession in 2026. According to ETF research firm VettaFi, Ark Innovation ETF witnessed $2.1 billion in net outflows over the past 12 months through July 3 and $43 million has exited the fund in the past five days. Also read: Bitcoin price today: Why BTC is going up and is this an all-time high? Sale of crypto stock Wood's ARK funds sold 137,075 shares worth $47.9 million from June 30 to July 2. Despite this sale, the company still ranks second in Ark Innovation ETF's holdings. The company recently launched its new payment service called Coinbase Payments, which allows 24/7 USD Coin (USDC) transactions. The platform has garnered interest from retailers like Amazon and Walmart and is currently already in use by Shopify. By Stuti Gupta
