View as web page here.
Sunday_Newsletter_ARK.png
Hi 
 
Please enjoy ARK's weekly newsletter curated by our thematic analysts and designed to keep you engaged with disruptive innovation. Have a wonderful day!
 
Health-Care

Not All NGS Tests Are Created Equal

Follow Simon on Twitter @sbarnettARK

 

ARK believes that the cost of next generation DNA sequencing (“NGS”) is declining in line with Wright’s Law: for every cumulative doubling in units produced, costs will decline at a fairly consistent rate. Given the explosion in genetic data, the cost declines associated with DNA sequencing have been breath-taking.

 

The amount of data generated by NGS tests varies significantly, with liquid biopsies testing for cancer recurrence dwarfing ancestry tests, as shown below. Stay tuned for a blog this week with a deeper analysis of the sequencing intensity of various NGS applications.

Screen Shot 2019-03-03 at 9.50.09 AM

Internet-Innovations.png

Facebook Aims to Launch Its Own Cryptocurrency This Year

Follow James on Twitter @jwangARK

 

During the next four months, Facebook hopes to launch its own cryptocurrency.  With a team of 50 people, former PayPal executive David Marcus is designing the coin to facilitate payments in WhatsApp, Facebook’s messaging service with more than 1.5 billion users. Facebook plans to peg the coin’s value to a basket of currencies to minimize day to day volatility. Not clear, however, is whether the coin will be decentralized or controlled by Facebook.

 

At our brainstorm this week, ARK debated why Facebook believes that it needs to launch its own cryptocurrency. Based on successful precedents like Tencent’s WeChat Pay and PayPal’s Venmo, popular payments products don’t need new currencies.

 

We discussed three possible explanations. Facebook could be building a cryptocurrency for the masses that is easy to use and stable in value. It also could be targeting the $600 billion remittance market, as existing mobile payment platforms are country-specific and cannot facilitate cross border transactions. Perhaps the simplest explanation, however, is that Facebook wants to capture more data: with more transactions on its network, it will be able to identify spending habits more precisely and improve ad targeting in all of its apps.

 

Our working assumption is that Facebook is acting in a rational and clear-headed manner. Historically, however, companies have fallen victim to organizational imperatives rather than unmet market needs. Microsoft entered the search business, Google launched a social network, and Verizon got into mobile advertising, all three making big investments based on internal narratives without a corresponding market need. Facebook’s own cryptocurrency could be at risk of joining this less than illustrious list.

Industrial_-Innovation

Tesla Completes Master Plan Part One

Follow Sam on Twitter @skorusARK

 

In 2006, Tesla laid out a simple plan:

Screen Shot 2019-03-03 at 9.49.18 AM

On Thursday, Tesla completed these goals by announcing a $35,000 base priced Model 3 with a 220-mile range that can accelerate from 0 to 60 mph in 5.6 seconds. To lower costs, Tesla is shifting all sales online and closing a number of its galleries. Musk also recommitted to making service a top priority to ensure that the mass market Model 3 comes with the best user experience possible.

 

While the $35,000 Model 3 captured headlines, Tesla made several other important announcements, among them:

Now that Master Plan Part One is complete, Tesla can focus on Master Plan Part Deux, which includes self-driving and other kinds of vehicles.

 

 

Lyft’s S-1 Suggests Autonomous Driving Is Not the Priority that It Should Be

Follow Tasha on Twitter @TashaARK

 

Lyft filed its S-1 this week with plans to IPO at a $20–25 billion valuation, up 33-66% from its last round at $15 billion. As autonomous vehicles commercialize, ride hailing companies will need a strategy to stay in business.

 

We looked through Lyft’s S-1 for mentions of autonomous driving. Notably, in its list of nine reasons “Why Lyft Wins”, autonomous is its lowest priority. Perhaps it is not confident enough in its autonomous technology strategy or in the time it will take to play out. Given the stakes, ARK sees this gap as a large oversight.

 

Thus far, no ride hailing company seems to be pursuing a fully autonomous technology stack, suggesting that most will partner with other autonomous-focused firms.  Problematically, most of the autonomous platform fee – the cut of gross revenue that Uber and Lyft currently take today – should go to the autonomous technology provider, leaving players like Lyft with a fraction of the fee for lead generation. Autonomous vehicles may put ride sharing companies at risk of failure.


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.


 

 

3 East 28th Street, Floor 7
New York, NY 10016 United States

You received this email because you are subscribed to Research Newsletters from ARK Investment Management LLC.
Unsubscribe from ARK emails or choose the types of emails you want to receive. Unsubscribe from all.
 

This Newsletter is for informational purposes only and does not constitute, either explicitly or implicitly, any provision of services or products by ARK Investment Management LLC (“ARK”). Investors should determine for themselves whether a particular service or product is suitable for their investment needs or should seek such professional advice for their particular situation. All content is original and has been researched and produced by ARK unless otherwise stated therein. No part of the content may be reproduced in any form, or referred to in any other publication, without the express written permission of ARK. All statements made regarding companies, securities or other financial information contained in the content or articles relating to ARK are strictly beliefs and points of view held by ARK and are not endorsements of any company or security or recommendations to buy or sell any security. By visiting and/or otherwise using the ARK website in any way, you indicate that you understand and accept the terms of use as set forth on the website and agree to be bound by them. If you do not agree to the terms of use of the website, please do no access the website or any pages thereof. Any descriptions of, references to, or links to other products, publications or services does not constitute an endorsement, authorization, sponsorship by or affiliation with ARK with respect to any linked site or its sponsor, unless expressly stated by ARK. Any such information, products or sites have not necessarily been reviewed by ARK and are provided or maintained by third parties over whom ARK exercises no control. ARK expressly disclaims any responsibility for the content, the accuracy of the information, and/or quality of products or services provided by or advertised on these third-party sites.