ARKK ETF is staging a comeback. 3 constituents to buy

on Apr 5, 2022
  • The Ark Innovation Fund has risen by 35% from its YTD low.
  • This performance has mirrored that of the Nasdaq 100 index.
  • Shopify, Block, and Teladoc are two stocks in the index to buy.

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The Ark Innovation Fund (ARKK) stock price has rebounded in the past few weeks as investors price in a resurgence of technology stocks. The fund is trading at $70.50, which is about 35% above the lowest level this year. Here are some of the cheapest stocks in the ARKK ETF that are set to do well.

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Shopify (NYSE: SHOP) is a leading technology company in the e-commerce segment. The firm provides a platform where people and companies can create their e-commerce platforms without any coding. The company competes with the likes of Big Commerce, Wix, and Square Space among others. It does not compete directly with Amazon.

Shopify makes money in a number of ways. For example, it charges its users a monthly fee that starts at $29 and rises to $299. In addition to this flat fee, the firm charges variable fees for all transactions done in its platform.

Shopify also has a financial business known as Shopify Capital. It is a platform that gives small business loans to companies in its platform. Further, its fintech business helps to process payments in its ecosystem. 

The Shopify stock price has risen by over 45% from its lowest level this year. And there is a likelihood that it will keep rising in the coming months even as e-commerce growth slows.

Shopify stock price


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Block (NYSE: SQ) is a fintech company that provides services to both companies and individuals. Its flagship products help companies receive funds both in stores and online. It also owns AfterPay, one of the biggest companies in the Buy Now Pay Later (BNPL) industry. Block also owns Cash App, the popular peer-to-peer payment product, and Tidal, the music streaming service.

Block stock price has risen by more than 74% from its lowest level this year. It has also managed to rise above the 23.6% Fibonacci retracement level. Therefore, it is one of the ARKK companies that will likely keep rising. Besides, its growth is still reasonable.

Block stock


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Teladoc (NYSE: TDOC) is a technology company in the health sector. The firm enables people to access health services through the internet. It has a market cap of over $11.89 billion and annual revenue of over $2 billion. Notably, its current valuation is significantly smaller than what it acquired Livongo Health for. It spent $18 billion on this purchase. 

Still, Teladoc is a good company that is cheap in terms of its historic metrics. It also has over 53.6 million paid members and the number will likely keep rising. It is the second-biggest constituent in the Ark Innovation Fund. The stock has crossed the 50-day MA and formed an inverted head and shoulders pattern.

Teladoc stock

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