Email from ARK Invest: Stock Commentary

Hello James,

Given recent market volatility, we posted a video providing a review of the dynamics at play. Please click the link to watch this week’s “In the Know with Cathie Wood”.

In addition, we share weekly commentaries with investors on stocks in our strategies that have appreciated or dropped more than 15% in a day during the course of the week. We hope you find this commentary useful.

Skillz (SKLZ)

27%

Skillz (SKLZ) traded up 27% on Wednesday after announcing an agreement to acquire Aarki, an adtech demand-side platform (DSP), for $150 million in cash and stock. Aarki engages in more than 5 trillion advertising auctions monthly with machine learning algorithms and data engines that help advertisers maximize customer reach and acquisition. Given Aarki’s exposure to the UK, India, and South Korea, this strategic acquisition should accelerate Skillz’s international expansion goals. Lessening its dependence on third-party DSPs to reach new users, we believe the acquisition also should lower Skillz’ user acquisition costs and bolster the monetization of existing monthly active users (MAUs). Skillz is a leading mobile games platform that enables competitive esports. Leveraging its patented match-making technology, Skillz hosts billions of casual esports tournaments worldwide each year.

DocuSign (DOCU)

19%

DocuSign (DOCU) traded up 19% on Friday after reporting strong earnings, surpassing expectations on both revenue and earnings and raising guidance for the second quarter and fiscal year. The company appears to be gaining traction in international markets and, although its Agreement Cloud offering still is in early stages of adoption, we remain confident that the COVID-induced transition to electronic agreements is not a temporary shift. Additions to the management team and clear strategic roadmaps have bolstered our confidence in the company. DocuSign offers cloud-based solutions for e-signature and related workflow automation, AI-enabled analytics, and lifecycle management.

ARK’s statements are not an endorsement of any company or a recommendation to buy, sell or hold any security. For a list of all purchases and sales made by ARK for client accounts during the past year that could be considered by the SEC as recommendations, click here. It should not be assumed that recommendations made in the future will be profitable or will equal the performance of the securities in this list. For full disclosures, click here.

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