Cathie Wood Is Loading up on These 5 Stocks -- Should You?

Markets have been volatile this year due to high inflation and the Fed's tilt. The stock market is expected to remain under pressure since the central bank plans to keep hiking rates. We think it's a good idea to avoid fundamentally weak stocks like Roblox, DraftKings, Teladoc, and Verve. Continue reading, please...

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Since the beginning of the year, the stock market has become more volatile. The Federal Reserve raised benchmark interest rates by 75 basis points in order to fight inflation. The economy is expected to go into a recession due to the monetary tightening.

The ARK Invest Exchange Traded Funds have been hit hard by the market turmoil. Over the past months and the past year, the ARK InnovationETF has plummeted in value. Wood's flagship fund doesn't have a lot of diversity. This is the main factor in the fund's under performance.

Tech growth and science were the focus of the fund. Tech stocks made up 34% of the portfolio. The poor risk management and wretched performance was cited by analysts as the reason for their change of stance on Wood's flagship ARKK from neutral to negative.

Since the stock market is expected to remain under pressure in the near term, we think it could be wise to stay away from fundamentally weak stocks

Roblox is a corporation.

The online entertainment platform is operated byRBLX. The company offers a free toolset for developers and creators to build, publish, and manage 3D content, as well as Roblox Cloud, an application that allows exploring the 3D digital world, and Roblox Education for learning experiences. The stock has a large amount of ownership.

The total cost and expenses increased by 27.5% in the second quarter. The company's loss from operations increased by 19.1%. The company reported an adjusted earnings before interest, taxes, depreciation and amortization of 54.64 million.

Net loss and loss per share attributable to common stockholders came in at $176.44 million and $0.30, worsening 25.9% and 20% year over year, respectively. In the year-ago quarter it had an inflow of $168.02 million.

There is a widening of the consensus loss per share estimate for the third quarter of the fiscal year. The company's loss per share is expected to increase by 24.1% and 11.2% over the next two years.

The stock has lost over 50% of its value over the past year to close at $35.55.

This outlook is reflected in the POWR ratings. A Strong Sell is what the stock has in our rating system. Each stock is assessed by 118 different factors, each with its own weight.

There is an F grade for stability and a D grade for growth and value. It is the last stock within the entertainment - toys and video games industry. Click here if you want to see more POWR Ratings forRBLX.

The company is called Draft Kings Inc.

The company operates in the US and internationally. Business-to-Consumer and Business-to- Business are segments of the company. Fantasy sports, sports betting, and i gaming are offered by the company. ARK has about 4.9% of the shares.

The adjusted operating expenses for the second quarter increased to $584 million. The company had a loss from operations of $308 million. Its adjusted earnings before interest, taxes, depreciation and amortization was negative $1118.13 million. It had a net loss of $217.10 million and an adjusted loss per share of $0.29.

The loss per share is expected to come in at $1.05 for the third quarter. The current and next year's losses are expected to come in at $3.19 and $2.16 respectively. The company missed the estimates in three of the last four quarters.

Over the past six months and the past year, the stock has fallen by 21.8% and 71.6%, respectively.

DKNG has an overall rating of F, which means it has a Strong Sell rating. A grade of F is given for stability and quality. There is a D grade for value.

The Entertainment-Casinos/Gambling industry has a D rated 27 stock industry. Click here if you want to see the additional POWR ratings.

Teladoc Health is a health care company.

Virtual healthcare is offered by T DOC. A portfolio of services and solutions is provided by the company Specialty care solutions, chronic condition management, mental health solutions, and platform and program services are offered by T DOC. T DOC's ownership is over 11 percent.

In the second quarter of the current fiscal year, TDOC's total expenses increased by over half a billion dollars. The company's loss from operations was more than three times larger than a year ago. The adjusted earnings declined from the prior year.

The company's net loss widened by 2,217.7% from the prior-year period to $3.10 billion, while its net loss per share worsened by 2,134.9%.

T DOC's fourth quarter loss per share is expected to widen to $0.15 from the previous year's nil. The company is expected to lose money in the next two years. In each of the last four quarters, the company missed the estimates.

TDOC's shares have plummeted over the past six months and year-to-date, closing at $26.42.

Poor prospects are reflected in T DOC's POWR ratings. The company has a rating of D and a rating of Sell.

A grade of F and a grade of D is given to the stock. It is a stock in the medical services industry. Click here to see additional POWR ratings for T DOC.

There is a company called IntelliaTherapeutics Inc.

NTLA is a genome editing company that uses nine technologies to develop drugs. Transthyretin amyloidosis and hereditary angioedema are both treated by NTLA. NTLA-5001 is used to treat Acute Myeloid Leukemia. NTLA has a large amount of ownership.

NTLA's operating expenses increased by 48.7% in the second quarter. An operating loss of $98.30 million was reported by the company. The company's net loss and net loss per share worsened year-over-year.

NTLA's revenue for the fourth quarter is expected to come in at $10.39 million, a decline of 17.4% from a year ago. The company is expected to lose more money in the same quarter than it did a year ago. The company is expected to lose money in the next two years.

Over the past year, the stock has declined by 63.3%.

The NTLA has poor prospects. The stock has a D rating, which is equivalent to a sell in our rating system.

There is a D grade for stability, sentiment, and value. It is a stock within the F-rated Biotech industry. The POWR ratings for growth and quality are available here.

VerveTherapeutics, Inc.

A software-as-a-service platform is developed by VERB. The products on the platform are marketed on a subscription basis. Sales-based organizations can use VERB's video marketing software applications to market their products. The ownership of the stock is over 5 percent.

The loss from operations for the second quarter was $42.19 million, a 148.7% increase over the same period a year ago. The company's net loss per common share attributable to common stockholders was $0.84 for the quarter.

The company had cash, cash equivalents, and marketable securities of $293.56 million as of June 30, 2022.

The current quarter is expected to see a loss per share of $0.07, according to analysts. The company is expected to lose money for the rest of the year. In each of the last four quarters, VERB missed revenue estimates.

Over the past six months and year to date, shares of VERB have slumped 54.8% and 64.1%, respectively.

The VERB POWR Ratings are not good. The stock has a D rating which equates to a sell in our rating system. It received a D grade for quality, growth, momentum, sentiment, and stability.

VerB is a stock in the F-rated Biotech industry. Click here to view the POWR ratings for value.

The shares rose in pre market trading. The benchmark S&P 500 index has risen over the course of the year, butRBLX has declined.

Her interest in the stock market led to her becoming a financial journalist. She looks to help retail investors understand the underlying factors before they make investment decisions.

There is more.

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