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Unfortunately for kathy wood and arkan fest things are actually about to get far far worse okay what i’m going to take you through here today is i’m going to show you exactly what’s going on after hours and what’s going on with these companies earnings and a bunch of ark stocks just reported and they’re all down massively okay and i’m going to share some thoughts on
This and in kind of my opinion on all this do i think it’s justified do i not think it’s justified but before we get into that i want to get into just showing you the stock so somebody actually pointed this out in the comments section because the last video i did uh somebody pointed you know basically i pointed out that upstart upst this company that does uh like
Loans and uses artificial intelligence and whatnot that stock was down 55 somebody in the comment section is like you got to see desktop metal dm okay and so i looked at this stock down 61 today 60 one flip and flap jack in percent that’s insane okay you know when i got in the stock market in o809 um you know and i told people that i was investing in the marketing
And getting in those sorts of things a lot of people told me not to do it a lot of people told me it was a scam that’s i heard that from several different people all stock markets a scam okay and um for a long time i had a chip on my shoulder about you know people trying to like steer me away from the stock market and hearing all the stock markets the scam and
Things like that and as i had more and more success over the coming years um you know that that chip kind of went away a little bit because i had a lot of success right but looking back i can understand why those folks felt like the stock market’s a scam 100 because here you are right let’s say you you research this desktop metal company right you’re like i like
It it’s the stock’s already down massively i like the valuation where it’s at i’m a believer in a long term blah blah blah you put ten thousand dollars into it yesterday your ten thousand dollars is now worth thirty nine hundred dollars in a day in a day you buy upstart you put ten thousand dollars in upstart right your ten thousand dollars is now worth forty five
Hundred dollars in a day and with the upstart company that wasn’t even a money losing company that’s a they like they make money on the bottom line they got a positive a pe uh they have real revenues right billion dollars plus are expected to and so it’s not like these are super risky stocks there’s not like some insane strategy with some crazy call options like i’m
Doing a yolo bet for the end of the next week and if it doesn’t hit here i’m down 99 that’s not at all the situation there’s just folks buying stocks and getting absolutely obliterated 40 50 60 70 80 90 and people start to think the stock market’s the scam because it doesn’t add up it doesn’t make sense why does that desktop metal stock deserve to go down 61 when
It was already down i don’t know 70 or 80 percent going in that earnings why did upstart deserve to go down 55 when it was already down 70 80 into those earnings right and so that’s what people start asking questions that’s why people start to some folks say stock market’s a scam because and i understand it because with these sorts of moves right getting devastated
Like that like at the end of the day you’re like this is a real company with real revenues how does a stock get cut in half in a day right so i get it i understand like that that whole thought process right you know i saw this on fast money just a few minutes ago nasdaq stocks only 23 stocks have reached new highs 1 1 453 nasdaq stocks just hitting basically lows
Okay nasdaq lows i mean that’s just extraordinary i like the number i’m more curious about is what are the 23 stocks that just hit highs what in the world how did any stock hit high fantastically were they doing reverse stock splits or something like that’s insane um but this number is startling startling 1453 stocks just hit new lows today insane man but that’s a
Sort of market rant okay no let’s get to kathy wood and um bad news bad bad bad news for kathy wood and ark invest okay so first off their 10th their 10th uh biggest investment so if we go to kathywoodstocks.com this is updated on a daily basis of kathy wood’s top 25 stocks in the main ark fund okay and the 10th biggest position is unity software ticker symbol u
They have 314 million dollars invested in this company it makes up about four percent of the weight of arc invest okay and this stock after hours is down 30 oh like 34 35 after hours 34 35 for their 10th biggest holding in the ark fund and this is a stock that’s already been obliterated the stock was 210 dollars you know not that long ago maybe seven eight months
Ago or so and after hours is trading at 31 31 that’s awful okay when it comes to unity software by the way in regards to the way i’ve heard unity software’s business model be described and i got to do more digging on this company but the way i’ve heard it described to me is kind of like an aws for folks that that run gaming companies essentially and so it seems
Like an intriguing business model but in regards to their earnings they report a net loss of 177 million dollars you know in this market you know any loss is bad right heck you can even make profit then you’re bad never mind a loss of 177 million it’s a 60 cent a share loss as compared to 107 million dollars of loss so the loss got obviously massively bigger or
39 cents a share in the year earlier quarter adjusted earnings came in at a loss of 8 cents revenue increased 36 percent but the guidance was noble okay the q2 revenue guidance came in at 290 to 295 analysts were expecting 360. for the full year unity’s projecting 1.35 to 1.43 billion dollars and als we’re expecting around 1.5 billion okay so like like why does
This matter so much just this one stock okay it’s not just because this is the 10th biggest holding for arc and this is going to pull their whole fun down tomorrow never mind what the stocks are about to get into here okay the reason this is so dramatic is right now kathy wood in the markets at least she’s seen as kind of having a credibility problem now at this
Point in time right because like everything is is it’s not like it’s going down and it’s like oh this stock’s down four percent here and this stock just fell six percent i mean these stocks are are falling off a cliff like like literally off a cliff like down 70 80 90 percent and then there’s showing no signs like a unity we just looked at that one that one was
210 it was 40 something dollars and here in the earnings the stock falls 30 something percent that leads to credibility issues for for kathy wooden for the rqtf which makes a lot more people say maybe i should just pull out money out of arc right and not believe in it anymore so that’s why this matters so much bigger than just this is our 10th biggest position
And it just absolutely tanked through the floor it’s much bigger than that okay if we look at kathy wood’s sixth biggest position in the main arc fund here okay it is coinbase ticker symbol coin in this one they have almost 400 million dollars invested in this stock as of right now at least that’s the market value um they’re probably i don’t know how much they’ve
Invested into a coin base over time but it’s probably a lot bigger number than that uh because i think they’ve been buying coinbase for a long long time okay basically pretty much since the company went public from my understanding the weight of that that position on the portfolio is about five percent okay so a fairly big weight in a very important position for
Coinbase the stocks down 15 and a half percent after hours fifteen and a half percent i mean it’s just another stock that can’t get out of its own way and it’s down another fifteen and a half percent after hours it’s like where is the bottom right and when it comes to coinbase they reported a massive loss of 1.98 when a lot of analysts were expecting a positive
Number uh revenue came in at 1.17 billion versus 1.48 billion was expected like you can’t come in with those sorts of misses in this sort of market you can’t do that man i mean that’s just uh that’s just an absolute disaster right overall usage declined from the fourth quarter retail monthly transaction users okay mtus fell to a 9.2 million that’s down 11.4 percent
From it from the fourth quarter that’s just on the sequential basis that’s awful okay uh while total trading volume dropped to uh from 547 million dollars in q4 to 309 billion excuse me billion dollars like that’s a dramatic cut look at that just a quarter over quarter from 547 billion to 309 billion i mean that’s awful the company’s revenue dropped 27 percent
From a year ago and also reported a net loss of 430 million dollars in the first quarter okay you know i don’t even know what to say about that that’s a disaster and that’s that that’s that’s across all fintechs right now you know to be fair to coinbase okay i don’t know any fintechs that are reporting boom numbers right now they’re all like you know pretty much
Reporting bad numbers look at the hood look at the numbers they reported right um all these companies that are in the fintech space it’s bad and it’s bad bad and the worst part of that is it’s getting worse like like with with a company like coin like it could easily get worse for at least the next few quarters and never mind that bitcoin you know is it in a very
Vulnerable place right now okay i mean a very vulnerable place for bitcoin right now you know this is a new data that just came out recently said 40 of bitcoin investors are now under water okay now it’s very easy to hold any asset i don’t care if it’s a stock if it’s a house if it’s a bitcoin a cryptocurrency ethereum whatever okay very easy to hold it when it’s
Going up but what do you do when it goes down right that’s when it gets tougher for folks to hold we see that in the stock market all the time what about when you go down big that’s a whole other scenario right so for bitcoin a lot of folks have just started to go underwater recently right but there may be only a little underwater what happens if bitcoin falls to
27 25 22 19 maybe that doesn’t happen okay maybe that never ever happens but for a second hypothetically what if it does okay well if that situation plays out i can tell you it’s going to lead to a lot more panic from a lot of folks that have obviously gotten into bitcoin over the past couple years because like i said when things are when things are going up in
Price it is so easy to hold it who wouldn’t hold it like it’s like oh it’s just going up but when it starts going down and when you start losing money that’s a big thing when you start losing your profits and now all sudden you’re in the red that’s when folks got to figure out okay and the thing with something like bitcoin is you have one side of bitcoin which is
Folks that are super believers of bitcoin and how it’s changing the world and how um you know it’s the future right and those folks might be right long term we’ll see they might be right okay that folks are placing their money where they believe things are going to change massively for the future but you’ve got another side of folks that own bitcoin that they’re
Only in it because they it’s been an asset that has been increasing in price and they wanted to make some money and so they got in and they’re like oh i’m gonna buy you know part of a bitcoin or one bitcoin or something like that because they were like oh it’s going up it’s going up it’s pumping and everybody’s making money from it so i want to make money and the
Problem is we don’t know how many folks are out there that fit that criteria of the folks that have really just gotten in it because it’s an asset that’s going up and they want to make money versus the folks that are the die hard believers the diamond hands that are holding bitcoin whether it goes to 10k or whether it goes to a million right and so that’s we’re
Going to find that out we’re going to find out in this time period so far based upon the crypto companies um you know and kind of these numbers coming out it’s not looking good i can tell you that it doesn’t look like there’s um much let’s call by the dip mentality when you just look at the factual numbers i mean it’s bad look at hood look at coin look at these
Companies that are public companies it’s bad and it’s getting worse okay and so that is not a good situation for obviously kathy wood in the arc fund right now okay the 21st biggest position for kathy win the arc fund is roblox they have 120 or once again they might have invested way more money than this into this company over time but as of recently this you know
Today they had 125 million dollars in this roblox company all right and they’re down as well after hours over seven percent downward move uh for this roblox company which is obviously a game okay roblox shares fell 10 in extended trading uh earnings came in at a loss of 27 cents as versus a loss of 21 cents was expected revenue came out of 631 million versus 636
Was expected it’s a double miss dude you can’t double miss in a sort of market and even if even if your stock’s already down huge like you still can’t come in with a double miss man not in this sort of market no way no how um you know like there’s just there’s no hope for a company in the short term when you come in with double misses that’s just the bottom line
Uh you can’t you can’t do that in this sort of market um i mean yeah i mean i hold stocks that have come in and uh you know beat on one of the numbers and they still went down i’ve had companies come in and beat them both both the top and bottom line and still go down the next day and so in this sort of market if you’re going to double miss oh gosh man you’re going
To be talking about being put in the penalty box that’s this sort of uh market we’re in right now right now something very important folks don’t talk about when they talk about kathy wood and the arc invest etf okay the arc innovation etf is what is what is the one thing that kathy wood always goes back to time and time again right it’s her five-year outlook and
Over the next five years we believe we’re gonna you know massively outperform the market and those sorts of things it’s always a five-year time horizon and it’s similar to mine actually i always look at the next three to seven years when i’m looking at a stock the next three to five is really my ideal like you know i’m investing in a company because i believe now
Over the next three to five years uh more than five years it starts to get a little cloudy in my opinion because a lot can change over you know seven years 10 years 20 years i think it’s hard to buy and hold a stock forever that’s what i call kind of my strategy modern long-term investing but when it comes to kathy wood she always talks about five years okay now
The issue is with the arc etf here is the rqtf as of today is up 53 in the past five years okay um as of tomorrow morning it’s going to not be that same number it might be 47 45 like we’ll see where the ark trades at tomorrow but obviously it’s not looking good um you know for at least some morning time we’ll see if the cpi data comes in better than expected in the
Market pumps and and and we move up from there but you know no matter what arc is likely going to be at a multi-year low tomorrow right and so here we are with arc you know being up 53 and as of tomorrow probably 40 something percent but the s p 500 for instance is up 67 over the past five years now this is a massive colossal uh issue for arc and for kathy wood
Because folks it’s one thing like when kathy woodstocks were going down but she was still technically beating the markets on a five-year basis right um it was kind of like oh you know it is what it is right but now that the s p 500 is not just beating kathy wood over the last five years but it’s actually kind of beating her quite substantially this is where an
Issue emerges which is uh obviously credibility and for you know somebody that’s running an etf with billions and billions and billions of dollars and for such a big name in the stock market you know to now be getting outperformed substantially on a five-year basis by the s p 500 that’s obviously an issue and it’s a pretty big issue and the the problem with this
Is is other investors look at this right and you know a lot of investors like to look at like five-year performance three-year performance whether it be of an etf or an index fund or whatever it is right they like to look at that and so now if you have this fund manager that says hey we’re all about the five year and you say okay let me look at the five year and
You see oh you’re getting you’re getting you know pretty destroyed by the s p 500 over the past five years wait why would i just put my money in an s p 500 index fund and so that’s the issue okay for for kind of kathy wood and if they’re talking about you know if other investors don’t put in money into ark and pull out money like you can even get more downside
And that’s that’s the toughest thing with this arc situation is you look at it it’s like can this thing really go down anymore like as of this morning i think arc was down 74 or 75 from the highs it hit in um around january february of 2021 and it’s like oh my gosh like for an etf that’s ridiculous and then you’re like can this really get worse again this has to
Be the bottom right and then you see all these earnings come out in just stock after stock i heard his tank like not a lot not small like all the stock been down three percent but like look at those moves and it’s just like ah and so you know for kathy wouldn’t arc there and a real pickle in this situation and um you know i’m hoping for the best you know for for
That whole situation but it’s ugly it’s ugly times ugly right now and um you know at least as of the morning tomorrow it’s gonna be even worse will cpi save things we’ll see we’ll see um let’s hope let’s hope but uh as of right now it is it’s awful man just pure awful so anyways hope you guys enjoyed this video kind of taking a look at this from a kind of a deeper
Standpoint i appreciate you guys joining me as always make sure you check out the description area for a bunch of fun links down there much love and have a great day
Transcribed from video
Cathie Wood is in Deeper Trouble than Ever | This Just Happened By Financial Education
