The ARKK ETF stock has done well this year, and is beating other funds like those tracking the Nasdaq 100 and S&P 500 indices. Its total return this year was ~40%, much higher than QQQ and VOO’s 20% and 17.7%.
However, the fund remains much lower than its all-time high of $157.98. Its five-year performance is minus 35%, while QQQ and VOO rose by 104% and 98%.
Top ARKK ETF gainers in 2025
The ARK Innovation Fund jumped as some notable technology companies soared, which helped to offset losses in others.
Palantir Technologies’ stock price jumped by over 142% this year, bringing its market capitalization to over $437 billion amid the ongoing AI boom.
The company is benefiting from the rising demand of its services, which the management believes will continue doing well in the coming years. Its recent results showed that its total revenue rose by 63% in the third quarter to $1.18 billion, with its US commercial revenue surging by 121%.
The main concern about Palantir is that the company has become highly overvalued in most metrics. Besides, this is a company with a $437 billion valuation and expected annual revenue of $6.19 billion next year.
Shopify, another top ARKK ETF constituent company, continued its bull run this year, rising by over 50%. The company, which is the backbone of the e-commerce industry, has continued to report strong financial results in the past few quarters, with its numbers constantly beating analyst estimates.
Shopify’s third-quarter results showed that its GMV jumped to $92 billion in the third quarter, from $69 billion in the same period last year. Its revenue jumped to $2.8 billion from the previous $2.1 billion, while its free cash flow rose by over $100 million.
Robinhood, which ARKK holds shares worth $293 million, was another top gainer as its stock soared by 210% this year. It has benefited from the S&P 500 Index inclusion and the fact that its business has grown across the board.
For example, its most recent results showed that its crypto revenue surged, even as other top companies like Coinbase and Kraken slowed. This growth was partially because of its Bitstamp acquisition.
The ARKK stock price also received a boost from AMD, a top semiconductor company in the United States. After struggling for a while, AMD’s stock price rebounded after the company inked a major deal with OpenAI, the creator of ChatGPT.
Meanwhile, Tesla’s stock price eked a gain in one of its toughest years ever. Its sales tumbled, while Donald Trump ended one of its main cash cows in the form of the EV tax credit. Instead, the company did well by promising to be a major player in the AI and robotics industry.
Still, ARKK ETF had some notable laggards, including BitMine, Archer Aviation, Block, CoreWeave, PagerDuty, and Intellia Therapeutics.
Is ARKK ETF a good investment?
Technicals suggest that the ARKK ETF stock has more upside in the coming months as it has jumped from a low of $29.97 in December 2022 to $80 today.
The current level coincides with the 38.2% Fibonacci Retracement level. Also, the stock has remained above the 50-week and 200-week Exponential Moving Averages (EMA). The two averages made a golden cross pattern in July this year.
It has jumped above the Supertrend indicator. Therefore, technicals suggest that the fund will continue doing well in the coming months, with the initial target being the year-to-date high of $91.95.
A move above that level will point to more gains, potentially to the all-time high of $157, which is ~100% above the current level.
Therefore, technicals suggest that the ARKK ETF has more upside in the coming weeks, making it a good investment. However, there is always a risk when investing in active funds, especially because of the cost. In this case, its expense ratio is a whopping 0.75%, which is much higher than QQQ’s 0.25%.
The post ARKK ETF analysis: How is Cathie Wood’s flagship fund faring? appeared first on Invezz