Cathie Wood's ARK Invest Posts Fund Purchases For Monday, Nov. 1, 2021: NTLA, BEAM, PATH, KTOS, VLD, NIU, BLDE, MKFG, ZM, GENI, EXAS, CDNA, ALLO, VERV, ARCT, ADPT, TWLO, HOOD, TOST
We cut our target by $66 to $388 on: 1) strong 3Q 21 top-line growth of 65% Y/Y, though results were clouded by M&A, perturbations in normal growth patterns due to Covid, and higher Q-to-Q results variance due to TWLO's usage-based billing model; 2) only 38% organic growth (i.e., ex Segment and ZipWhip acquisitions) but still 2% higher than organic growth in 4Q 19 pre-Covid; 3) COO George Hu's resignation likely not due to a "deeper issue," but it's a loss - we've admired his competent leadership since his Salesforce.com days; 4) 3Q was messy but our conviction remains solid, especially with shares down 17%. Our $388 target is a product of our $4.98B revenue forecast for '22, $209M lower and rolled forward from '23, and a 14.6x P/S (two-year mean, less 8% due to GAAP losses, partially offset by $4.1B in net cash). Revenue of $740M, +65% Y/Y, beat consensus by $56M; EPS of $0.01, down $0.03 Y/Y, but beat by $0.15. Our '21 EPS forecast remains -$0.12, but we cut '22 by $0.26 to $0.11 and '23 by $1.09 to $0.86.
- Intellia Therapeutics (NTLA) - 10,000
- Beam Therapeutics (BEAM) - 10,000
- UiPath (PATH) - 231,979
- Kratos Defense & Security Solutions (KTOS) - 124,745
- Velo3D (VLD) - 167909
- Niu Technologies (NIU) - 6,131
- Blade Air Mobility (BLDE) - 5,810
- MarkForged Holding Corp (MKFG) - 3,999
- Zoom Video Communications (ZM) - 30,000
- Genius Sports (GENI) - 21,705
- Exact Sciences (EXAS) - 261,557
- CareDx (CDNA) - 281,366
- Allogene Therapeutics (ALLO) - 203,297
- Verve Therapeutics (VERV) - 44,298
- Arcturus Therapeutics (ARCT) - 24,824
- Adaptive Biotechnologies (ADPT) - 6,878
- Twilio (TWLO) - 29,718
- Robinhood Markets (HOOD) - 123,393
- Toast (TOST) - 31,300
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