Very bad news for Cathie Wood’s ARKW, ARKF, ARKF and ARKQ ETFs — TradingView News

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Cathie Wood’s company has received a dose of bad news as earnings season draws to a close. Most of its exchange-traded funds (ETFs) have lost substantial assets after years of underperformance. For example, the ARK Innovation Fund (ARKK) lost billions of dollars and now has over $6.8 billion in assets. At its peak, it had billions of dollars in assets under management.

ARK ETFs saw significant outflows

The same goes for the ARK Autonomous Tech & Robotics (ARKQ) and ARK Fintech Innovation (ARKF) ETFs, which continued to underperform the broader S&P 500 and Nasdaq 100 indexes.

The bad news to watch for Thursday is that a company that exists in the ARKK, ARKW and ARKF ETFs reported weak financial results, pushing its stock lower in the extended hours.Invezz

ARKW vs. ARKK vs. ARKF vs. ARKQ

UiPath PATH The stock price plunged more than 34% and hit its lowest level since January 2023. It is now down more than 56% from its highest point this year and by more than 86%. compared to its all-time high. It is now approaching its all-time high while its market capitalization has fallen from more than $44 billion to less than $10 billion.

UiPath’s stock price fell even after the company reported encouraging financial results. Its revenue grew 16% in the first quarter to over $335 million, while its annual recurring revenue (ARR) climbed 21% to over $1.5 billion.

Nonetheless, the company warned that its business has seen “increased transaction scrutiny and an elongated sales cycle,” signaling a slowdown in its business. It now expects revenue to be between $300 million and $305 million in the second quarter. For the year, its revenue is expected to grow between $1.40 billion and $1.41 billion.Invezz

UiPath Stock Chart

UiPath will replace its CEO

In addition to its slow growth, the stock collapsed after the resignation of CEO Rob Enslin. He will be replaced by Daniel Dines, the company’s former founder and former CEO. In most cases, such CEO transitions indicate that a company is not doing well and needs a turnaround strategy. We’ve seen this with companies like Starbucks and Disney.

UiPath is an important company in Cathie Wood’s portfolio as it is part of most of her ETFs. It is the fifth largest company in the Ark Innovation Fund after Tesla, Coinbase, Roku and Block. The fund has more than 18.6 million shares worth more than $349 million.

UiPath is also the fifth largest company in the ARKQ ETF after Tesla, Teradyne, Kratos Defense & Security, and Iridium. It is the sixth largest constituent of the ARK Fintech Innovation ETF (arkf) after Coinbase, Shopify, Block, DraftKings and Robinhood. Additionally, the company is the eighth largest stake in the Ark Next Generation Internet ETF (ARKW).

Cathie Wood likes UiPath because of its role in corporate America. The company provides business automation and AI solutions to companies including Wells Fargo, Orange, Merck and Siemens.

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