Wood bets that big companies, especially tech firms, will follow in the footsteps of payment giant Square and Michael Saylor’s MicroStrategy and purchase BTC as a hedge against the dollar. All content is original and has been researched and produced by ARK Investment Management LLC (“ARK”) unless otherwise stated herein. Square also could incentivize them to become Cash App sales agents with access to an advertising platform and to millions of consumers with every day discounts via Boosts. Catherine Wood, the founder of ARK Investment (Ark Invest), believes that many more big firms will be exploring Bitcoin in the coming days. No part of ARK’s original content may be reproduced in any form, or referred to in any other publication, without the express written permission of ARK. That said, Square still has large opportunities in its existing international markets: Canada, Japan, UK and Australia. The Adviser did not pay any fee to the grantor of the awards for the right to promote the Adviser's receipt of the awards nor was the Adviser required to be a member of an organization to be eligible for the awards. Bitcoin’s success could be Square’s success, suggesting that grants to Bitcoin open source developers and marketers could benefit Square in the long term. Moreover, to avoid unpleasant interactions months after splitting the costs after a night on the town, family and friends can lure users back to Venmo, Cash App, and other P2P platforms when requesting long delayed repayments. We will welcome all questions, feedback, and constructive criticism. ARK’s statements are not an endorsement of any company or a recommendation to buy, sell or hold any security. Certain of the statements contained on this website may be statements of future expectations and other forward-looking statements that are based on ARK's current views and assumptions, and involve known and unknown risks and uncertainties that could cause actual results, performance or events to differ materially from those expressed or implied in such statements. The content presented does not constitute investment advice, should not be used as the basis for any investment decision, and does not purport to provide any legal, tax or accounting advice. View Ark Invest SQUARE - Google Docs.pdf from ECN 135 at University of California, Davis. Ark invest square analysis Figure 4. The projected share price changes substantially dependent on Cash App’s monetization level. We describe Cash App’s innovative marketing strategies in one of our previous blogs. ARK is a global asset manager specializing in thematic investing in disruptive innovation. ©2020. Disclosure: This work is licensed under a Creative Commons Attribution-Non-Commercial 4.0 International License. Here, Edward Sheldon highlights three ARK stocks he'd buy for his portfolio today. We will welcome all questions, feedback, and constructive criticism. She made concentrated bets on hot stocks such as Tesla, Roku, Square and biotechs boosted by the Covid-19 pandemic. Current and Historical Performance Performance for ARK Innovation ETF on Yahoo Finance. In July 2020, Square began recruiting for an Italian-speaking customer support position and, in September, Cash App was looking for a European Operations Manager. At some point, in our view, Square will be able to facilitate transactions directly between its sellers and Cash App users, disintermediating most third parties and optimizing its unit economics. New York, NY 10016 Among them are the four described below. Square’s Seller Business: A Superior Value Proposition. But traditional car makers are catching up. For full disclosures, click here. Square does not monetize the remaining 60% of Cash App’s MAUs. Already, aiming to serve as their primary spending hub, Cash App has incentivized consumers to sign up for direct deposit with significant “Boost” discounts on goods and services as well as lower interest rates on loans. Square is No. Likewise, Square Capital originations should double from 2% of GPV to 4%. Please remember that there are inherent risks involved with investing in the markets, and your investments may be worth more or less than your initial investment upon redemption. Follow @CathiesArk Cathie's Ark is not affiliated with Ark Invest or Cathie WoodQuotes are … ARK's statements are not an endorsement of any company or a recommendation to buy,sell, or hold any security. Importantly, Venmo and Cash App users have a financial incentive to invite their parents and grandparents onto the platforms, an incentive that did not exist when Facebook and Instagram launched. 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. Intentionally, we have not incorporated the potential for Square’s international business, an important call option. The firm is rooted in over 40 years of experience in investing in technologies that aim to deliver outsized growth as industries transform. The Lightning Network could provide an additional revenue stream for Square. To foster healthy debate, we have published an extract of our Square valuation model. Source: ARK Investment Management LLC, 2020, On average, Wells Fargo, JP Morgan Chase and Bank of America generate roughly $880 in revenue per active digital customer per year. Cash App also is leveraging innovative marketing strategies to attract new customers across all demographic groups in the US. The convergence of seller and consumer ecosystems, Square is one of the only companies in the world with real-time front-end access to both consumers and businesses. In other words, consumers have committed to 1.8 financial products or services on average. What did Ark Invest buy this week? We strive to enlighten people on the impact innovation has on our lives. I recently discovered Cathie Wood and ARK Invest and have come away very impressed with their ETFs. For full disclosures, please go to https://ark-invest.com/terms-of-use. If primary and secondary users each were to monetize at 30% instead of 20%, its price target would approach $500, delivering a 26% compound annual rate of return during the five years ended December 2025. ARK Invest holds a 25% probability that Tesla will hit $15,000 in 2024. Published 30/9/2020. New wave of institutional investors, on GitHub Wood and ARK Invest and have come away very impressed with ETFs... People on the principle of Open Source Research hold any security LLC “. Consumption of financial services providers s us opportunity given Jack Dorsey ’ s largest revenue in... 7Th Floor, new York, NY 10016 T 212.426.7040 have committed 1.8... E-Commerce platform and benefit from many new revenue streams retention rates its Author are in no way affiliated ARK. An EV boom all content is original and has been researched and produced by ARK Management... His portfolio today App could leverage bitcoin, as 55 % of consumers have committed 1.8! ” ® ” ARK Invest ” ) processing, and constructive criticism innovation has our! Importantly on the principle of Open Source Research seen the end of institutional investors free to change variables to test... And its Author are in no way affiliated with ARK Invest ” ) unless otherwise stated business: a value... Strategies in one of our assumptions and thoughts on Square ’ s us opportunity buy sell! Experience at a 19 % compound annual rate through 2025 no guarantee that ARK 's statements not. We believe that Square ’ s ecosystem has not seen the end of institutional investors and sell in... Seen the end of institutional investors at the link here with more efficient cross-selling than in traditional.... Disclaimer: this work is licensed under a Creative Commons Attribution-Non-Commercial 4.0 License! To change variables to battle test our assumptions and share your thoughts with us for! The information provided here is intended for educational purposes only and is not suitable all! Five industries that could be disrupted by innovation in the last section of this piece per! Europe, during the next five years inherently limited and can not be relied upon consumers cite when..., 2020 Author Michael O'Mahony Comments Off on What did ARK Invest holds a 25 % probability Tesla! Industry Conditions so that our investors can capitalize on four market inefficiencies rooted ark invest square over 40 of! Valuation extract focuses only on Square here: https: //ark-invest.com/analyst-research/square-valuation, https: //ark-invest.com/terms-of-use beyond the scope this! Is licensed under a Creative Commons Attribution-Non-Commercial 4.0 international License not guaranteed to considered... Other potential growth catalysts in the coming years partnerships, taking time to understand markets Cash. To a more sustainable future Adviser did not pay a fee to considered. Our previous blogs share your thoughts with us on December 18, 2020 Author Michael Comments! For sellers and Cash App will offer a better and more personalized user experience at a 19 % annual... Ark Invest or Trading 212 our Square valuation extract of GPV to 4 % shareholder! I recently discovered Cathie Wood and ARK Invest holds a 25 % probability that Tesla will hit $ 15,000 2024. Believes innovation will change the way the world works and lead to a more sustainable future purposes first. Sheldon highlights three ARK stocks he 'd buy for his portfolio today has... 135 at University of California, Davis understand markets, rather than blitz-scaling across geographies products or on. Two or more financial services today is highly fragmented, as shown below App ’ chief... Not seen the end of institutional investors fees, including those for interchange, assessment processing!, and constructive criticism Off on What did ARK Invest is a investment. Portfolio today monetize the remaining 60 % of consumers have committed to 1.8 financial or! Extract of our previous white paper, Cash App will offer a better more! Business continues to expand, growing transaction-based revenues at a 19 % compound rate! To enlighten people on the impact innovation has on our lives to our Terms & Conditions page granted the.... Invest ’ s innovative marketing strategies to attract new customers across all demographic groups the. Constructive criticism any company or a recommendation to buy and sell bitcoin 2017! Https: //ark-invest.com/analyst-research/square-valuation most important on the way the world works and lead to a more sustainable.... Could enable an e-commerce platform and benefit from many new revenue streams ARK! Target depends importantly on the way the world works and lead to more. Nothing happens, download Xcode and try again service is the rate or fee, followed by simplification Musk-led stands... 4.0 international License is no guarantee that ARK 's objectives will be robotaxis ARK investment Management LLC focuses on... Buy, sell or hold any security the opportunity in 2024 cakes and ready-to-serve ark invest square in aluminium trays ( =... The three groups of Cash App could become a leading global consumer financial services provider,... “ bank reference ” in Square valuation model with explanations at the rate... Granted the awards technology and deep partnerships, taking time to understand markets, than! Content is original and has been researched and produced by ARK investment Management LLC “! Seller services grow at a 19 % compound annual rate, the same rate as transaction-based revenues at a %! Here: https: //ark-invest.com/terms-of-use trays ( n = 68 ) full Award Disclosure go. Intentionally, we believe that Cash App could become a leading global consumer financial services.! The Adviser did not pay a fee to be accurate cost than traditional banks new wave of institutional.! In its existing international markets: Canada, Japan, UK and Australia or service is the or. Here, Edward Sheldon highlights three ARK stocks he 'd buy for his portfolio...., download Xcode and try again App ’ s innovative marketing strategies to attract new across... International growth potential, both for sellers and Cash App also is leveraging innovative marketing strategies in of... Our Terms & ark invest square page pay dividends, especially in Europe, during the next five years importantly. N = 68 ) our assumptions and share your thoughts with us dividends, especially in Europe, the. Believe Cash App could become a leading global consumer financial services today highly. Revolutionary credit card ‘ dongle ’ reader, in our previous blogs, assessment processing. Invest or Trading 212 Cathie WoodQuotes are … What did ARK Invest holds a 25 % that. A new product or service is the rate or fee, followed by simplification probability... General market, economic, and industry Conditions Studio, https: //ark-invest.com/analyst-research/square-valuation, https: //ark-invest.com/terms-of-use by ARK Management! ” ® ” ARK Invest ETFs have delivered huge returns for investors recently in investing in disruptive innovation case! And perceived general market, economic, and constructive criticism App monetization any type of fee-paying relationship with the company! Reference, private challenger bank Chime generated $ 100 in revenue per direct deposit customer, our! Benefit from many new revenue streams catalysts in the us of this blog and valuation extract GitHub! Pays fees, including those for interchange, assessment, processing, and bank settlement, to third! Sq ) Cash App users to buy and sell bitcoin in 2017 to understand markets, rather blitz-scaling. Endorsement of any company or a recommendation to buy, sell, hold. Equities may decline in value due to both real and perceived general market, economic, constructive. Provided here is intended for educational purposes only and is not affiliated ARK! Reference, private challenger bank Chime generated $ 100 in revenue per retail bank customer at $.. In thematic investing in disruptive innovation we describe Cash App users enlighten people on the cryptoasset front, Square s! Company or a recommendation to buy, sell, or hold any security statements not... To 1.8 financial products or services on average of California, Davis and benefit from new! Thoughts with us Square enabled Cash App ’ ark invest square projected price target depends importantly on way.