4 Cathie Wood Stocks That Remain Sells Even After Falling by More Than 50%

NYSE: NVTA | Invitae Corporation  News, Ratings, and Charts

NVTA – Institutional investor Cathie Wood’s funds have been declining sharply over the past year amid a broad selloff in stocks due to macro headwinds, including skyrocketing inflation, the Fed’s hawkish monetary stance, climbing U.S. Treasury yields, and the consequences of intense economic sanctions imposed on Russia. Owing to their poor earnings outlook and bleak growth prospects, we think it could be wise to avoid the fundamentally weak Cathie Wood stocks Invitae (NVTA), Teladoc (TDOC), Zoom (ZM), and Roku (ROKU). Read on.

This past year has been extremely challenging for Cathie Wood’s equity funds. The tech-heavy ARK Innovation ETF (ARKK) has been foundering after hitting its peak in February 2021, owing to concerns surrounding the Fed’s hawkish stance, which negatively impacts growth stocks. Furthermore, the escalating Russia-Ukraine war has led to a sharp spike in commodity prices and U.S. Treasury yields, adding to inflationary pressures. These macroeconomic factors have weighed more broadly on ARK’s equity fund.

During the first quarter of 2022, ARKK was the worst-performing U.S. equity fund, and incurring severe losses in the quarter. A sharp selloff in tech stocks has dragged down the leading ARKK fund. Cathie Wood’s top holdings have been retreating sharply due to the selloff. Yesterday, the fund’s third-biggest holding, Teladoc, tumbled more than 46% in price following a poor earnings report. Investors’ bearish sentiment is evident in ARKK’s 61% decline over the past year.

Given their history of losses, deteriorating fundamentals, and bleak growth prospects, we think it could be wise to avoid Cathie Wood’s stocks Invitae Corporation (NVTA), Teladoc Health, Inc. (TDOC), Zoom Video Communications, Inc. (ZM), and Roku, Inc. (ROKU).

Invitae Corporation (NVTA)

NVTA is a medical genetics company that improves healthcare in the U.S., Canada, and internationally by integrating genetic information into mainstream medicine. The San Francisco company provides digital health solutions and genetic tests in different clinical areas, including hereditary cancer, neurology, cardiology, metabolic conditions, oncology, and rare diseases. It serves patients, healthcare providers, and biopharma companies. The stock has 10.27% weighing in ARK’.

In its fiscal 2021 fourth quarter, ended Dec. 31, 2021, NVTA’s research and development expenses increased 82.6% year-over-year to $131.76 million, while its selling and marketing expenses grew 27.3% year-over-year to $62.21 million. Its loss from operations for the fourth quarter was valued at $214.57 million. The company’s net loss and net loss per share amounted to $205.12 million and $0.90, respectively.

The negative $0.83 consensus EPS estimate  for its  fiscal year 2022 first quarter, ended March 31, 2022, represents a 47.8% year-over-year decline from the same period in 2021. The stock has declined 66.5% in price year-to-date and 85.8% over the past year. It closed yesterday’s trading session at $5.22.

NVTA’s POWR Ratings are consistent with this bleak outlook. The stock has an overall F rating, which equates to a Strong Sell in our proprietary rating system. The POWR Ratings assess stocks by 118 distinct factors, each with its own weighting.

NVTA has an F grade for Sentiment. It has a D grade for Quality, Stability, and Momentum. Within the D-rated Medical – Diagnostics/Research industry, it is ranked #47 of 49 stocks.

To see NVTA’s POWR Ratings for Growth and Value, click here.

Click here to checkout our Healthcare Sector Report for 2022

Teladoc Health, Inc. (TDOC)

TDOC offers virtual healthcare services in the U.S. and internationally. The Dallas, Tex., company provides a portfolio of services and solutions covering episodic, chronic, and medical conditions. TDOC also offers programs and services, including specialty care telehealth solutions, chronic condition management, mental health solutions, and platform and program services. It offers its products and services under the Teledoc, Livongo, and BetterHelp brands. TDOC has an 11.42% weighting in ARK.

TDOC’s total expenses increased 1,243.9% year-over-year to $7.23 billion in its fiscal 2022 first quarter ended March 31, 2022. The company’s loss from operations grew 7,776.2% year-over-year to $6.67 billion. Its net loss before taxes rose 5,826.8% year-over-year to $6.67 billion. Its  net loss and net loss per share came in at $6.67 billion and $41.58, respectively, registering an increase of 3,243.1% and 3,074% from the prior-year period.

Analysts expect TDOC’s revenue to amount to $598.58 million for its fiscal year 2022 second quarter, ending June 30, 2022, representing a 19% decline from the prior-year period. The Street expects the company’s loss per share for the fourth quarter, ending Dec. 31, 2022, to come in at $0.46, representing a 619.2% increase year-over-year. It is no surprise that the company has missed the consensus EPS estimates in three of the trailing four quarters.

Shares of TDOC have plunged 77.5% in price over the past six months and 82% over the past year and closed yesterday’s trading session at $33.51.

TDOC’s POWR Ratings reflect its poor prospects. The company has an overall D rating, which translates to Sell in our proprietary rating system.

The stock has an F grade for Sentiment and a D grade for Value, Stability, and Momentum. It is ranked #75 of 83 stocks in the Medical – Services industry.

To see additional POWR Ratings (Growth and Quality) for TDOC, click here.

Click here to checkout our Healthcare Sector Report for 2022

Zoom Video Communications, Inc. (ZM)

ZM in San Diego, Calif., offers a unified communications platform in the Americas, the Asia-Pacific, Europe, the Middle East, and Africa. The company offers a wide range of platforms, including Zoom Meetings, Zoom Chat, Zoom Rooms, Zoom Hardware-as-a-Service, OnZoom, and Zoom webinars. In addition, it provides Zoom Developer Platform and Zoom App Marketplace. It serves individuals and industries such as healthcare, government, manufacturing, entertainment, education, and software. The stock has a 3.25% weighting in ARK’s portfolio.

Last November, Brundidge & Stanger P.C., a leading recognized Intellectual Property law firm, announced multi-patent infringement litigation against ZM for alleged infringement of its client Cyph, Inc.’s patents and inventions. Cyph filed a lawsuit valued at hundreds of millions of dollars on Nov. 9, 2021, against ZM for intellectual property (IP) infringement and using Cyph’s proprietary technology without paying for it.

In its fiscal year 2022 fourth quarter, ended Jan. 31, 2022, ZM’s total operating expenses increased 56.6% year-over-year to $562.21 million. Its income from operations declined marginally from the prior-year period to $251.82 million. The company’s cash and cash equivalents decreased 52.6% year-over-year to $1.06 billion for its fiscal 2022 (ended January 31). In addition, its cash outflow from investing activities amounted to $491.99 million for fiscal 2022.

The $0.88 consensus EPS estimate for its fiscal 2023 first quarter, ending April 30, 2023, represents a 33.7% year-over-year decline from its  year-ago value. The stock has decreased 44.3% in price year-to-date and 69.1% over the past year. It closed yesterday’s trading session at $102.56.

ZM’s POWR Ratings reflect this bleak outlook. It has a grade of D for Stability and Growth. It is ranked #35 of 81 stocks in the D-rated Technology – Services industry.

Click here to see ZM’s POWR Rating for Value, Sentiment, Quality, and Momentum.

Roku, Inc. (ROKU)

San Jose, Calif.-based ROKU operates a TV streaming platform. The company operates through two segments: Platform; and Player. ROKU’s platform offers access to various movies and TV shows. It has more than 61 million active accounts. It offers digital and video advertising, content distribution, subscription, and billing services. In addition, ROKU provides streaming players and audio products under the Roku brand name. It has 6.83% weighting in ARK’s portfolio.

The slowdown in the fourth quarter was largely attributed to global supply chain disruptions that impacted the U.S. TV market and further reduced Roku’s TV sales. Its  overall U.S. TV unit sales declined below pre-COVID-19 levels. Some of ROKU’s TV OEM partners were hit hard due to inventory challenges negatively impacting sales figures and market share in the fourth quarter.

ROKU’s player revenue decreased 9.5% year-over-year to $161.70 million in its fiscal 2021 fourth quarter, ended Dec. 31, 2021. The company’s total operating expenses rose 49.1% year-over-year to $358.30 million. Its income from operations decreased 67.2% year-over-year to $21.4 million, and its adjusted EBITDA declined 23.6% from a year-ago value to $86.70 million. Its net income and net income per share came in at $23.69 million and $0.17, respectively, registering a decline of 64.8% and 65.3% from the prior-year period.

The Street expects ROKU’s loss per share to amount to $0.37 for its fiscal year 2022 second quarter, ending June 30, 2022, representing a 171.2% rise from the prior-year period. The stock has declined 71.4% in price over the past six months and 74.4% over the past year. It closed yesterday’s trading session at $91.63. ROKU’s year-to-date decline translates to 60.7%.

ROKU’s POWR Ratings reflect its weak prospects. The company has an overall D rating, which translates to Sell in our proprietary rating system.

ROKU has an F grade for Stability and a D grade for Growth and Value. It is ranked #54 of 61 stocks in the D-rated Consumer Goods industry.

To see additional POWR Ratings (Sentiment, Momentum, and Quality) for ROKU, click here.


NVTA shares were trading at $5.43 per share on Friday morning, up $0.21 (+4.02%). Year-to-date, NVTA has declined -64.44%, versus a -10.94% rise in the benchmark S&P 500 index during the same period.


About the Author: Mangeet Kaur Bouns


Mangeet’s keen interest in the stock market led her to become an investment researcher and financial journalist. Using her fundamental approach to analyzing stocks, Mangeet’s looks to help retail investors understand the underlying factors before making investment decisions. More...


More Resources for the Stocks in this Article

TickerPOWR RatingIndustry RankRank in Industry
NVTAGet RatingGet RatingGet Rating
TDOCGet RatingGet RatingGet Rating
ZMGet RatingGet RatingGet Rating
ROKUGet RatingGet RatingGet Rating

Most Popular Stories on StockNews.com


:  |  News, Ratings, and Charts

Recession is Here...Watch Out Below!

More and more it looks like recession is here. This includes a dramatic decline for ISM Manufacturing discovered this morning. As you likely know, most economist call manufacturing the "canary in the coal mine" for the US economy as it often shows weakness before other areas. In fact, GDP Now from the Atlanta Fed reads it loud and clear with a negative revision for the US economy down to -2.1% for Q2. Ouch! We are going to discuss these new economic facts...what it means for the stock market outlook...and an interesting view on why the S&P 500 (SPY) does not decline in orderly fashion. All that and more is coming your way in this week's commentary…

:  |  News, Ratings, and Charts

4 Ideal Stocks to Add to Your Portfolio in July

While sluggish consumer spending data led to the stock market ending the last trading session of June in the red, a moderate inflation forecast is nurturing hopes over the economy to avoid a recession. Therefore, investors might consider buying quality stocks ARC Document Solutions (ARC), Core Molding Technologies (CMT), DLH Holdings (DLHC), and Friedman Industries (FRD) at their current low price levels to benefit from their big rebounds. Read more…

:  |  News, Ratings, and Charts

Stocks to Fall MUCH FURTHER this Bear Market Cycle

Spoiler alert...the bear market is not over. Unfortunately history shows that the S&P 500 (SPY) has much further to fall to squeeze out excess valuation. That is just a natural part of the bear market process that is properly explained in this timely market commentary. More importantly, this commentary provides a strategy on how to profit in the days and weeks ahead as the market finds its way to bottom. Read on below for more...

:  |  News, Ratings, and Charts

Wall Street Analysts Predict More Than 160% Upside in These Stocks

The high global inflation and hawkish federal reserve are leading to heightened volatility in the market. However, despite the market uncertainties, Wall Street analysts see a more than 160% upside potential in IonQ (IONQ) and Rigetti Computing (RGTI). Thus, these stocks could be ideal additions to your watchlist. Keep reading…

:  |  News, Ratings, and Charts

Stocks to Fall MUCH FURTHER this Bear Market Cycle

Spoiler alert...the bear market is not over. Unfortunately history shows that the S&P 500 (SPY) has much further to fall to squeeze out excess valuation. That is just a natural part of the bear market process that is properly explained in this timely market commentary. More importantly, this commentary provides a strategy on how to profit in the days and weeks ahead as the market finds its way to bottom. Read on below for more...

Read More Stories

More Invitae Corporation (NVTA) News View All

Event/Date Symbol News Detail Start Price End Price Change POWR Rating
Loading, please wait...
View All NVTA News