While Cathie Wood of the ARK Innovation Fund (NYSEARCA:ARKK) hasn’t been right about everything, there’s one point she’s backing harder than ever recently: the days of mega-cap stocks as the bellwethers of innovation are running out, if not already gone. That determination led to Wood picking up shares of UiPath (NYSE:PATH) and Twilio (NYSE:TWLO).
Wood, backed up by her team, recently explained that both of these stocks have a surprising exposure to artificial intelligence, and may be in line to become major AI stocks going forward. Neither of these two has really come up much on analysts’ radar, so most regular investors likely haven’t heard of the potential these two represent.
However, those weren’t the only two names that have recently come up in the intersection of “lesser-known” and “new ARK investments.” Just yesterday, ARK Invest doubled its purchased shares of Adyen (OTHEROTC:ADYYF), a mobile payments platform that’s poised to take on the likes of Stripe and PayPal (NASDAQ:PYPL). Currently, ARK Invest has 1.7 million shares of Adyen, equating to 1.13% of the total holdings at ARK Invest. She’s also bought heavily into Archer Aviation (NYSE:ACHR) as well as Gingko Bioworks (NYSE:DNA).
Yet, of the five aforementioned stocks, only one is considered a Strong Buy by analysts: Archer Aviation. With an average price target of $8.50, it also comes with a 25.28% upside potential. Twilio comes with the lowest upside; a Moderate Buy by analyst consensus, it also bears just a 12.38% upside potential on its average price target of $67.65.
