It’s still not looking bright for Cathie Wood‘s flagship fund, ARK Innovation (NYSEARCA:ARKK), as it brought in some disastrous news. Moreover, several of the key holdings that make up ARK Innovation also suffered in Wednesday afternoon trading. Roku (NASDAQ:ROKU) dropped over 2%, while UIPath (NYSE:PATH) dropped slightly less at just over 1.5%. Zoom Video Conferencing (NASDAQ:ZOOM) lost fractionally, while Coinbase (NASDAQ:COIN) and Tesla (NASDAQ:TSLA) were both up fractionally.
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While the individual components of ARK Innovation have had some mixed luck of late, the fund itself is hurting. Investors have been pulling cash from ARK at staggering rates, and October represents the third straight month that investors pulled out their cash. Just since August 1, investors have pulled out a combined total of just over half a billion dollars, at $537 million. ARK Innovation investors took back $52.23 million in October alone. That was actually in keeping with previous months, at least, percentage-wise. Investors took back 11.6% in October, and took back 9.1% in September, and before that, 12.2% in August.
However, there’s not much to suggest that ARK Innovation lost ground because of something it did in isolation. Reports suggest that October in general was considered a terrible month for most funds, with the exception being gold funds. The primary culprit was the Israel-Hamas War, which introduced a whole lot of uncertainty into a space that was already fairly uncertain, and impacted everything from consumer sentiment to energy prices. Going into winter, that’s a double shock.
What is the Forecast for Ark Innovation ETF?
Turning to Wall Street, ARK Innovation shares have a wide range of value propositions. ROKU stock is the leader right now, as its average price target of $82.76 gives this Moderate Buy stock a 42.3% upside potential. Meanwhile, COIN stock is the laggard, with a 9.92% upside potential on this Hold-rated stock with an average price target of $84.79.
