Kathy Wood makes a bold prediction about Tesla's stock price here's everything you need to know in today's video welcome to trade daily where we break down all the best stock market news like And subscribe to keep up to date with the stock market and I really hope you enjoy this video Arc invest CEO Kathy Wood has earned a reputation for bold predictions her asset management firm became a Wall Street sensation during the early days of the pandemic as the arc Innovation ETF delivered triple digit returns in


2020. unfortunately those gains have since evaporated but wood hasn't budged from her medium term price Targets on Tesla and Roku both of which rank among the top three Holdings in the arc Innovation ETF specifically Arc estimates Tesla will trade a split adjusted 1 533 dollars per share by 2026 which implies a 688 upside from its current share price and it estimates Roku will trade at 605 dollars per share by 2026 which implies a 924 upside from its current share price are those forecasts realistic


Tesla has been in disruptive force in the Auto industry from day one in addition to popularizing electric vehicles the company uses a novel direct to Consumer sales strategy to drive efficiency by eliminating dealerships from the equation it has also cultivated a premium brand image and inspired incredible demand without traditional advertising in fact Tesla topped the industry in battery electric car sales in the first half of the Year capturing a 19 market share the company has also become a case study


in operating efficiency thanks to Innovative battery cell technology Tesla pays less for battery packs than any other automaker according to Karen Energy Research advisors and Leadership is expected to last through the decades end itionally it's single piece casting technique meaning the front and rear body of the model Y is cast as a single piece of metal has greatly reduced the welding robot count at the new gator factories in Texas and Berlin that Relentless pursuit of manufacturing efficiency continued to pay off in the


third quarter as Tesla once again achieved the highest operating margin in the Auto industry despite missing delivery estimates the company still Brew Revenue by 56 to 21.5 billion dollars and it generated a record free cash flow of 3.3 billion dollars looking ahead management says full self-driving technology will eventually be the greatest source of profitability that is the Cornerstone of ark's investment thesis wood expects robotaxic Revenue to approach 290 billion dollars by 2026 while lower margin EV sales will


contribute about 480 billion dollars to total revenue that prediction is very ambitious at best and wildly unrealistic at worst Tesla won't have a robo taxi in production until 2024 and scaling autonomous ride-hailing service to 290 billion dollars by 2026 sounds a bit far-fetched that said Tesla does have more miles worth of autonomous driving data than its Rivals and data is the Cornerstone of the artificial intelligence that will one day drive these vehicles Tesla has also demonstrated its capacity for


Innovation on countless occasions so it's reasonable to assume robitaxis will be a key part of its business at some Future Point while 688 returns by 2026 are probably unrealistic this gross stock is still worth buying for patient investors Roku is the most popular streaming platform in the world both in terms of devices and viewing time in fact Roku holds nearly twice as much Market shared both categories as the next closest competitor that makes Roku a valuable advertising partner and it monetizes


brand relationships with one View and AD Tech platform that allows marketers to run targeted cross-channel campaigns on connected televisions CTV desktops and mobile devices unfortunately many brands have cut their ad budgets due to softening demand as people continue to battle High inflation and that Trend hit Roku hard in the third quarter Revenue Rose just 12 percent year over year to 761 million dollars and the company posted a got loss of 0.88 dollars per share down from a profit of 0.48 dollars per share the


same period last year but investors shouldn't read too much into those results roku's still growing faster than several other AD tech companies in fact alphabet reported three percent growth in ad Revenue in the third quarter while meta platforms actually saw sales decline four percent moreover Roku is the most popular streaming platform by a wide margin and that positions it for strong growth as the economic climate stabilizes Ambia estimates online video advertising will surpass traditional television


advertising this year growing into a 259 billion dollar market by 2026 that's the Cornerstone of ark's investment thesis what assumes Roku will see approximately 10 billion dollars in online video advertising Revenue in 2026 meaning it would have about four percent market share that estimate isn't unreasonable but art also expects Roku to reach 157 million active accounts by 2026 up from 65.4 million in the most recent quarter that implies annualized growth of 23 percent for the end of 2026 a meaningful


acceleration from the 16 growth reported last quarter Roku will benefit as more ad dollars shift to online video but economic uncertainty will probably slow active account growth in the near term as high inflation continues to suppress demand for streaming players and smart TV it seems unlikely shareholders will see 924 gains by 2026 but this growth stock is worth buying and holding EV stocks have plummeted lately but giving up on this Market is a mistake electric vehicle stocks have taken it on


the chin lately and many investors who were previously bullish on the EV industry are now left wondering whether there's still a good way to benefit from the massive shift to electrified vehicles I think there is but not all UV stocks are going to benefit and it's going to take some patience to see the eventual payoff here are a few things that are going wrong and a handful of things going right with the EV industry today and why there are at least two stocks worth owning the bear case for the EV


industry if you're an EV bear coming up with a list of reasons to stay away from these stocks right now is pretty easy supply chain shortages continue to Rattle EV production there's a semiconductor shortage yes still inflation is running rampant driving up the cost of materials and vehicles covid related lockdowns in China have hampered some EV companies production need I go on EV companies saw their share prices go on a near euphoric rise in most of 2020 and 2021 as stock market investors practically threw money and


anything technology related a handful high-profile electric vehicle company IPO including rivian automotive and Lucid group helped add to all the excitement but all of the aforementioned problems with the EV Market have culminated in one massive storm cloud that's rained all over the EV parade it's been bad really bad for Ev investors Tesla's share price is down four to four percent over the past 12 months rivians has plummeted 73 percent and loosens has dropped 72 percent but here's the thing about storms that's


hard to remember when you're in the middle of one they pass the rain stops the clouds part and the Sun comes back out again just like with a long list of reasons to be skeptical of EV stocks there are some very legitimate reasons to be optimistic about this Market too first 60 of all light Vehicles sold worldwide in 2030 are predicted to be EVS up from 13 right now the EV industry will be worth an estimated 1.4 trillion dollars by 2027. nearly 60 percent of Americans said they would consider


buying an electric vehicle up seven percent from 2021 according to TrueCar in addition to all of this many governments are now incentivizing consumers to buy electric vehicles to help fight climate change for example the inflation reduction Act passed by Congress earlier this year included significant incentives for Ev purchases up to seven thousand five hundred dollars toward a new EV purchase and up to four thousand dollars for used EVS Legacy automakers see the writing on the wall and are investing billions of


dollars to transition to EVS over the coming years the disruption of the automotive industry is causing fears that some automakers will be left behind but investors should focus on the new opportunities that disruption often creates so I'm going to give you two good EV stock opportunities if you're willing to take some risk I think there are at least two EV stocks worth considering right now Tesla and rivien Tesla is a leader in the EV space it got a jump on the market ahead of traditional


automakers and is currently the largest electric vehicle producer in the world there are risks with the company of course one of which is CEO Elon musk's new focus on Twitter additionally Tesla's stock isn't cheap by any stretch of the imagination the shares are trading at 60 times the company's forward earnings what I point out that this is much cheaper than the company's price to earnings ratio of about 344 just one year ago Tesla's EV success is undeniable in the most recent quarter the company


delivered 343 830 Vehicles up 42 from the year ago quarter and it's on track to reach of vehicle production run rate of 2 million this year the company's growing list of Gita factories across the globe is helping vehicle production accelerate and musk estimates that his company will reach an annual vehicle production of 20 million by 2030. profits are also moving in the right direction with earnings jumping 69 percent in the most recent quarter to 1.05 billion dollars and Tesla's net


profit margin of about 15 percent is a feat of accomplishment for an automaker investors looking for an attractive pure play in the EV space likely won't find a more successful company right now if your risk tolerance is even higher rivian might be worth considering this is another EV Pure Play focusing on electric pickup trucks and SUV one thing that sets rivian apart from its EV startup Rivals is that it already has a significant vehicle order from a large company Amazon has already nailed rivien down


for an order of 100 000 electric delivery vans rivian is also picking up important Partnerships most recently with Mercedes to share a factory in Europe to split the cost of producing electric vans while rivian's vehicle production has faced some speed bumps it continues to accelerate production was up 67 percent in the third quarter and management reiterated its guidance of delivering 25 000 vehicles for full year 2022. additionally rivian has plenty of cash on hand to continue building out the


company it ended the third quarter with 13.8 billion dollars in cash cash equivalents and restricted cash enough to keep things running until 2025 according to Management rivian's stock isn't exactly cheap with the forward price to sales ratio sitting at 58 right now but rigion is also making significant moves in the EV Market that could pay off down the road if you have a higher risk tolerance opening a small position today could allow you to tap into rivian's massive potential an even better move would be


looking into Tesla and why its stock price will bring back 100 times the investment for anyone who gets in right now we explain exactly how in this video here foreign and with that we've come to the end of the video I'd like to give a huge shout out to anyone who's made it this far I hope you enjoyed the video I'd also like to make it clear that this is a news and entertainment video not investment advice you should always do your own research and speak to a financial advisor before making any Investments


thank you all so much for your support don't forget to like And subscribe for the chance to win up to twenty thousand dollars in Amazon gift cards and we'll see you in the next video foreign if you want more crazy trade news how about this video we did