ARKW: Unoriginal Portfolio Of Pricey Tech Stocks

Joseph Parrish
2.51K Followers
(6min)

Summary

  • ARK Next Generation Internet ETF has delivered 410% returns over the past decade but is now rated 'Hold' due to high valuations.
  • ARKW focuses on next-gen internet themes like cloud services, fintech, cryptocurrency, and streaming, with a top-heavy portfolio in large tech stocks.
  • High P/E ratios and lack of GAAP earnings in top holdings raise concerns about overvaluation and management's reluctance to lock in profits.
  • Current economic uncertainties, tariffs, and the absence of strong catalysts make ARKW less appealing, warranting a 'Hold' rating until valuations improve.

stagnation

aluxum

ARK Next Generation Internet ETF (BATS:ARKW) is an opportunity to invest in an actively managed ETF that, over the last decade, produced total returns of 410%.

The real question, however, is whether or not such a return in likely again. With its

This article was written by

2.51K Followers
I analyze securities based on value investing, an owner's mindset, and a long-term horizon. I don't write sell articles as those are considered short theses, and I never recommend shorting.Former advisory representative at Fidelity. I do my own investing now and share my research here.

Analyst’s Disclosure:I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.

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