Shopify (SHOP)

Laptop computer displaying logo of Shopify Inc., a Canadian multinational e-commerce company headquartered in Ottawa, Ontario
monticello/Shutterstock

Wood believes Canadian e-commerce giant Shopify is in a position to challenge the space’s biggest player, Amazon, in the coming years. Thanks to its differentiated service and first-mover advantage, Shopify’s upside remains attractive according to Wood.

“We're trying to figure out how Amazon is going to deal with this notion of individuals seeing something on Instagram or elsewhere on Facebook or on Twitter, or on Snap and just buying there," Wood recently told BNN Bloomberg. "That's a Shopify-enabled commerce opportunity and we think it's going to be big."

Shopify is already pretty big. In Q3, the company raked in over US$1.1 billion in revenue and currently boasts a market cap greater than US$180 billion.

The company’s stock is up about 22% this year, which is good news for ARKK investors. The fund holds more than 425,000 shares in Shopify.

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Block (SQ)

Square Point of Sale and Square for Retail apps are seen on an iPhone.
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If there’s one thing Cathie Wood’s a fan of, it’s disruption. And Block (formerly known as Square) is positioned to be one of the fintech industry’s biggest disruptors.

Block started out as a digital payment platform, and is still among the space’s leaders, but its expanded slate of products — the ever-evolving Cash App, recent offerings for making crypto investing easier, the recently acquired Afterpay — should allow the company to occupy a growing role in an increasingly cashless global economy.

Block’s Q3 gross profits came in at US$1.13 billion, a year over year increase of 43%. But the company’s share price has been all over the place this year. It’s currently down about 25% year to date.

Block still takes up a fair amount of space in ARKK — about 3.3 million shares’ worth, which accounts for 3.3% of the portfolio.

DraftKings (DKNG)

View of DraftKings app on a smartphone.
Lori Butcher/Shutterstock

If you’re willing to bet on the stock market, it makes a certain kind of sense to target a company that has gambling at the heart of its business.

Sports betting is booming — particularly online. The industry generated about US$131 billion in revenue in 2020, according to Zion Market Research, and is projected to grow to almost US$180 billion by 2028.

As one of the leading fantasy sports and online bookies in the space, DraftKings stands to be at the forefront of that growth.

In Q3, it expanded its operations into three additional states and brought in revenue of US$213 million, a 60% increase compared to the same period last year.

Wood continues to like what she sees. In addition to ARKK holding more than 12.1 million DraftKings shares, she recently added another 55,400 shares in the company to the Ark Fintech Innovation ETF.

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A finer alternative

To be sure, growth stocks can be extremely volatile. And not everyone feels comfortable holding assets that make wild swings every week.

If you want to invest in something that has little correlation with the ups and downs of the stock market and the crypto market, you might want to consider an overlooked asset: fine art.

Contemporary artwork has already outperformed the S&P 500 by a commanding 174% over the past 25 years, according to the Citi Global Art Market chart.

Investing in art by the likes of Banksy and Andy Warhol used to be an option only for the ultra-rich, like Wood. But with a new investing platform, you can invest in iconic artworks, too, just like Jeff Bezos and Bill Gates do.

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About the Author

Clayton Jarvis

Clayton Jarvis

Reporter

Clayton Jarvis is a mortgage reporter at MoneyWise. Prior to joining the MoneyWise team, Clay wrote for and edited a variety of real estate publications, including Canadian Real Estate Wealth, Real Estate Professional, Mortgage Broker News, Canadian Mortgage Professional, and Mortgage Professional America.

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