ARKK ETF Performance - ARK Innovation ETF (ARKK) has dropped 9.58% year-to-date as of early February 2026, following a strong 35.49% return in 2025 that outperformed the S&P 500 [1] - The decline is attributed to weaknesses in the fund's largest holdings and a broader market repricing of growth stocks [1] Tesla's Impact - Tesla remains the largest position in ARKK at 11.12%, with the stock down 7.18% year-to-date, closing at $417.44 [1] - Tesla reported Q4 2025 earnings of $0.50, beating estimates but showing a 60.6% year-over-year decline in earnings growth, with revenue falling 3.1% year-over-year to $94.83 billion [1] - Tesla dropped out of China's top 10 NEV makers in January 2026, marking its lowest monthly sales since November 2022 [1] Coinbase's Performance - Coinbase, representing 3.55% of ARKK, has seen a significant decline of 27.34% year-to-date, with shares trading at $164.32, down from $226.14 at year-end [1] - The decline is attributed to both the overall weakness in the crypto market and a Q4 earnings miss [1] - Cathie Wood has been actively buying Coinbase shares, adding $26.1 million in December 2025 [1] Other Holdings - Palantir, a 3.19% position in ARKK, reported Q4 2025 earnings of $0.25, beating estimates, but the stock is down 26.07% year-to-date [1] - Shopify, representing 4.31% of ARKK, is down 29.99% year-to-date but reported strong Q4 results with revenue of $11.56 billion, up 30.6% year-over-year [1] Strategic Changes - Cathie Wood is reshaping ARKK's portfolio, with healthcare now the largest sector allocation at 22.8%, surpassing Information Technology at 20.0% [2] - The fund's top 10 holdings account for 52.4% of assets, indicating a high concentration that amplifies both gains and losses [2] - ARKK's expense ratio is 0.75%, which is high compared to passive alternatives, but Wood's active management has historically delivered differentiated returns [2]

INVESTOR PRESENTATION This presentation contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 that reflect the Company's current views with respect to, among other things, future events and its future business, financial condition, results of operations and prospects. These statements are often, but not always, made through the use of words or phrases such as "may," "should," "could," "predict," "potential," "believe," "will likely result," "expect," ...

Welcome to FYI, the 4-year innovation podcast. This show offers an intellectual discussion on technologically enabled disruption because investing in innovation starts with understanding it. To learn more, visit ark-invest.com. Ark Invest is a registered investment adviser focused on investing in disruptive innovation. This podcast is forformational purposes only and should not be relied upon as a basis for investment decisions.It does not constitute either explicitly or implicitly any provision of services ...

BIG IDEAS 2026 RESEARCH REPORT FOR INFORMATIONAL PURPOSES ONLY ARK Investment Management LLC This is not a recommendation in relation to any named particular securities/cryptocurrencies and no warranty or guarantee is provided. Any references to particular securities/cryptocurrencies are for illustrative purposes only. There is no assurance that the Adviser will make any investments with the same or similar characteristics as any investment presented. The reader should not assume that an investment identifi ...

Group 1 - Cathie Wood predicts a significant shift in Tesla's trajectory by 2026, indicating a bullish outlook for the company [1] - Tesla's performance in 2025 was characterized by resilience amid challenges, with ARK Invest focusing on high-conviction stocks to capitalize on opportunities [2] - The growing excitement around the Robotaxi opportunity is expected to enhance Tesla's margins through a recurring revenue model [3] Group 2 - Wood expresses optimism about SpaceX potentially becoming the first trillion-dollar company, driven by new opportunities such as datacenters in space [4] - The outlook on inflation is positive, with Wood citing factors like oil and housing prices, alongside technology's deflationary effects [5] - Recent trades by ARK Invest included selling 86,139 shares of Tesla for approximately $37.8 million, while maintaining a positive long-term view on the company's future in autonomous driving and robotics [6] Group 3 - Wood previously forecasted Tesla's stock could reach $2,600 by 2030, suggesting an $8.19 trillion market capitalization if shares outstanding remain unchanged [7] - Current market indicators show TSLA stock is experiencing short-term consolidation but has medium and long-term upward momentum [7]

Core Insights - The article emphasizes the importance of recognizing the underlying "water" or environment in which companies operate, which often goes unnoticed by investors, leading to misjudgments in company valuations and business durability [6][5][4] - It highlights the concept of "economic castles," where certain companies create powerful competitive advantages and ecosystems that redefine consumer interactions, often resulting in undervaluation by the market [7][14][15] Company Analysis - Amazon (AMZN) is noted for its dual dominance in e-commerce and cloud computing, with Amazon Web Services (AWS) contributing over 50% of its operating profits. The company is expected to grow revenues at a compound annual growth rate of approximately 10% over the next five years, with earnings per share projected to more than double during that period [47][49][50] - Apple (AAPL) has a robust ecosystem with about 2.4 billion active devices and a growing subscription services segment, which accounted for roughly 42% of total gross profits in fiscal 2025. The company anticipates approximately 10% annual growth in earnings per share over the coming years [51][52][54] - Brookfield Corporation (BN) is recognized as a leading global alternative asset manager with over $180 billion in permanent capital. The company aims for 15%+ annualized total returns for shareholders, driven by strong investment performance and a favorable macro backdrop for real assets [55][57][58] - QXO is in the early stages of consolidating the $800 billion building products distribution industry, having made a significant acquisition of Beacon Roofing Supply for approximately $11 billion. The company expects to double cash flow within four years and achieve over $50 billion in revenue [59][61][63] - Tesla (TSLA) is positioned as a leading AI company with competitive advantages across electric vehicles and energy storage. The company is expected to significantly increase vehicle production and deliveries, with its AI capabilities remaining underestimated [65][68][69] Industry Trends - The article discusses the transformative impact of robotics and autonomous vehicles on labor, urban design, and economies, emphasizing that these technologies are not just tools but extensions of the internet's architecture [23][24][30] - It highlights the importance of understanding network effects, where a product's value increases with each new user, creating self-reinforcing cycles that enhance scalability and competitive dominance [29][30] - The scalability of technology companies often follows a fractal-like pattern, where growth accelerates at higher scales, leading to stark disparities in market capitalization [33][34]

Group 1 - Cathie Wood's ARK Invest has reduced its holdings in Tesla while increasing investments in smaller, speculative stocks like Oklo, indicating a strategic shift in focus [1][5] - Oklo's stock has recently pulled back by 38% over the past three months but remains up 293% year-to-date, making it an attractive investment opportunity for ARK [2][3] - Bank of America predicts that nuclear energy could become a $10 trillion market, with global reactor capacity needing to triple by 2050, highlighting the long-term potential of companies like Oklo [3] Group 2 - The demand for continuous power is rising due to the scaling of AI computing, positioning next-generation nuclear energy as a viable solution to supplement intermittent renewable sources [4] - ARK Invest's recent trades include significant purchases of Oklo shares worth approximately $8.9 million, alongside other investments in companies like Archer Aviation and CRISPR Therapeutics [7] - The sales of Tesla and other stocks, such as Rocket Lab and Shopify, reflect a strategy of profit-taking after substantial gains, while reallocating capital towards emerging technologies [7]

Core Insights - The Ark Innovation ETF (ARKK) has performed well, up over 35% year to date and more than 78% over the last two years, benefiting from a favorable environment for disruptive innovators [2][4] - Despite recent weaknesses in the growth trade, particularly in the Nasdaq 100, the long-term outlook for disruptive innovation and growth themes remains positive for the next two to three years [3][4] - The Ark Innovation ETF is currently down approximately 17% from its recent highs, suggesting a potential buying opportunity [4][7] ETF Comparisons - The Ark Innovation ETF is characterized by high volatility, with a beta of 2.41, indicating a more turbulent investment compared to the S&P [6] - The Goldman Sachs Future Tech Leaders Equity ETF (GTEK) focuses on technology firms with market caps below $100 billion, with a weighted average market cap of $72.4 billion, and may be a safer alternative during market fluctuations [6][7] - Both ARKK and GTEK charge an expense ratio of 0.75% and employ active management strategies [7]

Financial Data and Key Metrics Changes - Total company revenue for Q3 2025 was $1.281 billion, reflecting year-over-year growth of 6% [10] - Adjusted EBITDA for Q3 was $243 million, up 7% year-over-year, with an adjusted EBITDA margin of 19%, representing a sequential increase of 400 basis points [14][15] - Adjusted cash flow from operations was $161 million, with adjusted free cash flow at $87 million, indicating strong cash flow generation [14] Business Line Data and Key Metrics Changes - Vision Care revenue for Q3 was $736 million, increasing by 6%, driven by growth in both consumer and contact lenses [10] - Pharmaceuticals segment revenue was $330 million, representing a 7% increase, with MIEBO generating $84 million, a 71% year-over-year increase [13] - Surgical segment revenue was $215 million, a 1% increase, with premium IOLs showing 27% constant currency revenue growth [12][13] Market Data and Key Metrics Changes - The U.S. branded RX business in pharmaceuticals grew by 13%, while the international pharmaceuticals business was up 12% [13] - The contact lens market is growing at a mid-single-digit rate, with the company outpacing the market growth [41][80] - The company reported a 9% growth in the U.S. contact lens market and a 4% growth internationally [12] Company Strategy and Development Direction - The company is focused on four strategic pillars: Selling Excellence, Operational Excellence, Disruptive Innovation, and Financial Excellence [5][6] - The upcoming Investor Day will showcase a three-year plan aimed at delivering sustained, profitable growth [6][15] - The company aims to elevate the standard of care in eye health through innovative product launches and a strong pipeline [6][7] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the growth potential of the dry eye market, anticipating continued expansion due to increased awareness and education [18][100] - The company is committed to maintaining a disciplined approach to cost management while investing in R&D for future growth [15][66] - Management noted that the tariff situation remains fluid but expressed confidence in the ability to mitigate impacts [75][78] Other Important Information - Adjusted gross margin for Q3 was 61.7%, a decrease of 130 basis points year-over-year, primarily due to product mix and the Invista IOL recall [14][86] - The company is maintaining its full-year revenue guidance at $5.05 billion to $5.15 billion, representing constant currency growth of approximately 5% to 7% [15][16] Q&A Session Summary Question: Commentary on Financial Excellence pillar - Management explained that the Financial Excellence pillar focuses on ensuring every dollar spent drives growth and efficiency, emphasizing disciplined execution and resource allocation [24][26] Question: Insights on contact lens market share - Management indicated that the contact lens market is growing in the mid-single digits, with the company growing faster than the market due to new product innovations [41][42] Question: MIEBO's performance and market opportunity - Management highlighted MIEBO's strong TRx growth of 110% year-over-year, indicating a positive outlook for the dry eye treatment market [18][49] Question: Surgical business and Invista IOL recovery - Management reported impressive recovery in the Invista IOL platform, with sales reaching 82% of pre-recall levels, and expressed confidence in regaining market momentum [58][60] Question: Capital allocation strategy - Management confirmed a commitment to deleveraging while also considering reinvestment in R&D and potential M&A opportunities [108]

Core Insights - Cathie Wood's ARK Invest continues to attract investors due to its focus on disruptive innovation, particularly in AI, fintech, and biotech, despite the inherent volatility in these sectors [1][2] - ARK's flagship innovation fund has achieved a significant double-digit gain this year, outperforming the S&P 500, although it has experienced higher volatility compared to the index [2] - Recent portfolio adjustments indicate a strategic shift towards fintech and automation, with a notable reduction in exposure to Palantir Technologies [3][5] Company and Industry Summary - ARK Invest has trimmed its stake in Palantir Technologies by selling approximately 4,000 shares valued at $754,000, reflecting a cautious approach as AI valuations have surged [5] - The fund's top holdings include Tesla (9.94%), Coinbase (4.87%), Roku (4.66%), Shopify (4.62%), and Palantir (4.60%), among others, showcasing a concentrated investment strategy [4] - In addition to reducing its position in Palantir, ARK has increased its investments in fintech, acquiring 1.2 million shares of LY Corp. and expanding its stake in Klarna Group by 76,000 shares [6] - Other notable reductions include selling 9,100 shares of Roblox for nearly $1.15 million and 18,300 shares of Shopify across multiple ARK funds, totaling around $3 million [7]