Why Is Cathie Wood in Deep Trouble? Teladoc, Zoom, Roku, Coinbase, and Square Explained

TL;DR

Cathie Wood is described as being in deep trouble because major portfolio holdings, including Teladoc, Zoom, Roku, Coinbase, and Square, have suffered substantial losses. Teladoc, her third-largest position, was already down more than 80% from February 2021 before falling another 37% after earnings and weak guidance. Zoom was down 78% over the same period. Read on for the figures and expectations behind these declines.

Transcript

kathy wood kathy wood is in deep trouble folks and i mean deep trouble so uh essentially i was watching some cnbc this afternoon and uh the reason being is two of my companies were reporting earnings facebook was reporting earnings paypal was reporting earnings and usually cnbc kind of has it the fastest as far as the numbers and i like to kind of ... Read More

Key Insights

• 🤨 Teledoc's significant drop in stock price raises concerns about the company's potential recovery and its ability to meet market expectations.
• 😀 Kathy Wood's portfolio, including stocks like Zoom, Roku, Coinbase, and Square, has suffered substantial losses, contributing to the challenging situation she currently faces.
• 🖤 The overall market conditions, lack of optimism, and potential impact of upcoming earnings reports are adding to the volatility and uncertainty surrounding Kathy Wood's stocks.

Questions & Answers

Q: Why is Cathie Wood in deep trouble?

Several major positions in Cathie Wood’s portfolio have suffered substantial losses, including Teladoc, Zoom, Roku, Coinbase, and Square. Teladoc alone was down more than 80% from February 2021 and then fell another 37% after its earnings report.

Q: How important is Teladoc to Cathie Wood’s portfolio?

Teladoc was the third-largest position in the main ARK fund tracked by the speaker’s website. The speaker says it would have been the second-largest position if its stock had not already fallen so much.

Q: Why did Teladoc stock fall 37% after earnings?

The central problem was Teladoc’s guidance falling below analysts’ expectations. Its next-quarter midpoint was about $590 million versus an expected $615 million, while its full-year midpoint was about $2.45 billion versus an expected $2.58 billion.

Q: How far had Teladoc stock fallen before its post-earnings drop?

Teladoc was already down more than 80% from February 2021 before the additional 37% after-hours decline. The speaker says the stock had not traded this low since 2017.

Q: Was Teladoc still growing when its stock plunged?

Yes, the company reported revenue growth of 25%. However, adjusted EBITDA was down, and Teladoc recorded a massive loss mainly attributed to goodwill impairment.

Q: Did the speaker consider Teladoc a buy after the decline?

The speaker considered Teladoc attractive at roughly $30-something per share and believed buyers could be happy within five years, possibly two. However, he said he would not buy it the next day because he preferred other opportunities across small-, mid-, and large-cap stocks.

Q: What opportunity did the speaker see for Teladoc’s business?

The speaker viewed Teladoc as a real revenue company with a large opportunity in virtual healthcare. He expected virtual healthcare to grow over the next decade or two, particularly alongside an aging population in the United States.

Q: How badly had Zoom stock performed alongside Teladoc?

Zoom was down 78% from February 2021, nearly matching Teladoc’s decline over that period. Its weakness added to the losses affecting Cathie Wood’s major portfolio holdings.

Summary & Key Takeaways

• Teledoc, the third-largest position in Kathy Wood's portfolio, has plummeted over 80% since February 2021, with a 37% drop following its recent earnings report.

• Zoom stock has also experienced a significant decline of 78% since February 2021, and its upcoming earnings may impact its performance further.

• Other stocks in Kathy Wood's portfolio, such as Roku, Coinbase, and Square, have also suffered substantial losses, raising concerns about the overall performance and success of her investments.