Why This Top Stock Of Cathie Wood's Portfolio Is Sinking Today

Shares of Zoom Video Communications Inc. ZM were sliding in premarket trading on Tuesday.

What Happened: The San Jose, California-based provider of unified communications platform reported late on Monday third-quarter non-GAAP earnings per share of $1.07, ahead of the 84-cent per share consensus estimate. Revenue climbed 5% year-over-year to $1.101 billion compared to the average analysts’ estimate of $1.1 billion.

See Also: Tesla On Track To Snap 4-Session Slide But Nasdaq, S&P 500 Futures Edgy As Rate Worries Weigh — These Tech, Oil Stocks In Focus Today

Among the customer metrics, enterprise customers rose 14% to 209,300, and online average monthly churn dipped 60 basis points to 3.1%, while the trailing 12-month net dollar expansion rate for enterprise customers stood at 117%.

The company, however, issued mixed guidance for the fourth quarter and the full year, triggering concerns regarding a growth slowdown.

Zoom Video is the top holding of Cathie Wood-owned Ark Invest’s flagship Ark Innovation ETF ARKK and Ark Next Generation Internet ETF ARKW. The firm expects Zoom Video shares to skyrocket to $1,500 in 2026.

Price Action: In premarket trading on Tuesday, Zoom Video shares were sliding 9.28% to $72.81, according to Benzinga Pro data.