Cathie Wood Scooped Up $17M Worth Of Zoom Shares On A Day They Fell 8%

Cathie Wood-led ARK Investment Management bought over 267,000 shares of communications technology company Zoom Video Communications Inc ZM at an estimated valuation of over $17.5 million based on Tuesday's closing price.

The stake hike was done via the ARK Innovation ETF ARKK and the ARK Next Generation Internet ETF ARKW. Zoom is the second largest holding of the ARK Innovation ETF with a weight of 7.76%, according to the latest data available on the global asset manager’s website.

Also Read: How to Buy ARK Innovation (ARKK) ETF

Wood's purchase of Zoom shares comes on a day when the stock closed over 8% lower following the company's earnings announcement and a broader Nasdaq sell-off over the debt ceiling impasse. Zoom's first-quarter revenue increased 3% year-over-year to $1.11 billion, which beat an average estimate of $1.08 billion, according to Benzinga Pro.

GAAP net income attributable to common stockholders for the first quarter stood at $15.4 million compared to $113.6 million in the first quarter of fiscal year 2023.

The company said it expects second-quarter revenue between $1.11 billion and $1.115 billion versus an estimate of $1.11 billion. Full-year revenue is expected to come in between $4.465 billion and $4.485 billion versus an estimate of $4.45 billion.

Zoom’s guidance, however, shows that growth is expected to continue to slow from its pandemic peak, which could have weighed on the stock. On a year-to-date basis, Zoom shares are down by over 1.5%.

Major Sale: ARK also sold over 36,000 shares of sports betting company DraftKings Inc DKNG at an estimated valuation of over $878,000 based on Tuesday's closing price.

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