Why Cathie Wood Thinks ROKU Stock Can Gain 600% by 2026

$ARK Innovation ETF(ARKK.US)$ ’s Bullish Thesis
If Wood’s $Roku Inc(ROKU.US)$ stock price target is correct, it will mean an increase of roughly 7x for investors, generating an annual growth rate of 53%. As Seeking Alpha reports, “Looking at ARK Invest’s bull and bear cases, it sees ROKU reaching as high as $1,493 per share and as low as $100 per share, which would provide annualized returns of 88% and 3%, respectively.”

In the report, Wood’s team at ARK breaks down Roku’s two revenue streams: player and platform revenue. It sees the second as being divided into several key parts, including third- and first-party video advertising as well as The Roku Channel, content distribution, and display advertising.
This isn’t the first bullish call Wood has made on a beaten down tech stock. In June 2022, ARK published a bull thesis for $Zoom Video Communications(ZM.US)$ , citing the stock’s potential if hybrid work models continue to grow. Some of her other large holdings include $Tesla(TSLA.US)$ , $Block(SQ.US)$ and $Coinbase(COIN.US)$ , three tech plays that have all suffered significant losses in 2022.