3 Reasons You Shouldn’t Listen To Cathie Wood

Investment guru and founder of Ark Invest Cathie Wood rose to fame with her bold stock market picks. She’s heavily focused on market disruptors, and many of her choices have proven correct, even in the face of strong opposition from Wall Street. But some of Wood’s more recent picks have been head-scratchers. Here are just three examples of why it’s important to be wary about your investments, even when the predictions come from someone known for success.

Roku (NASDAQ: ROKU)

Roku has been struggling recently. It’s share prices are down a shocking 40% this year, largely on the back of Walmart’s announced plan to acquire Vizio. Investors are concerned that the sheer heft of Walmart brand recognition could give Vizio’s SmartCast the boost it needs to overtake Roku. Meanwhile, the company is already facing stiff competition from brands such as Amazon’s Fire, not to mention all the other streamers on the market. Roku isn’t dead in the water, but right now its challenges are too formidable to overlook.

Roblox (NYSE: RBLX)

Roblox is a gaming platform that’s incredibly popular with kids. Users create virtual worlds, carefully placing everything from cars to restaurants, in which their avatars “live”. They can then interact within these virtual worlds via gaming or social media networks. The problem is that Roblox is currently struggling to expand its target market, which needs to grow significantly for the company to become profitable. There’s a long road ahead, though patient investors with a high risk tolerance may want to take the ride.

UiPath (NYSE: PATH)

UiPath has had a confounding year. The company offers an AI-driven platform that helps businesses boost efficiency and cut costs through automation. Yet despite the AI frenzy that’s gripping Wall Street, UiPath stock is down more 50% this year. This is partly due to its CEO’s sudden departure in May, but it’s still surprising for an AI company in today’s climate. UiPath still has room for a turnaround, but it will need to come up with a way to prove that it offers unique value over its many competitors.

Neither Lisa Fritscher nor Stocks.News have positions in any of the companies mentioned in this article.