Cathie Wood Snaps Up Shares Of Zoom Video Communications Inc., Others

In a show of confidence for video-conferencing giant Zoom Video Communications Inc., prominent investor Cathie Wood expanded her stake in the company. The move came as a response to Zoom’s stock decline following the release of its latest earnings.

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Wood Remains Bullish On Zoom

On Tuesday, two of Wood’s Ark Investment Management LLC funds acquired an additional 122,831 shares of Zoom. This marks the firm’s first Zoom purchase in nearly two months while displaying Wood’s confidence in the company that gained notoriety during the COVID-19 pandemic. 

Zoom’s recent quarterly results surpassed market expectations, with the company also upgrading its projections for the full year. Despite this, Zoom’s shares dipped by 2.1% the following day. 

The decline can be attributed to market analysts expressing concerns about the company’s long-term growth, given the global momentum toward returning to physical workplaces and burgeoning competition, notably from tech behemoth Microsoft Corp.

Ark Investment’s significant investment, which now equates to over 4% of Zoom’s total shares, indicates Wood’s unwavering belief in the platform. Zoom emerged as a standout performer during the pandemic, facilitating remote work globally. Wood’s investment decision seems to defy prevalent market skepticism and a global trend of transitioning back to in-person work.

In a broader market perspective, Zoom’s stock has decreased by 2.1% this year. This is in stark contrast to its previous high-flying status, and it’s on track to lag behind the Nasdaq 100 Index for the third consecutive year. 

Conversely, Wood’s primary Ark Innovation exchange-traded fund (ETF) has experienced an impressive 31% growth in 2023, overshadowing the S&P 500 Index’s 14% rise but falling slightly short of the 36% surge of the Nasdaq 100.

Platforms like Public.com allow investors to see ARKF ETF price, Buy/Sell ARK Fintech Innovation ETF and discuss news and analysts' price predictions with the investor community.

Zoom Isn’t Alone

While Woods is all-in on Zoom, it’s not the only company she’s watching closely and investing in. 

Archer Aviation Inc. ACHR — an air taxi service — has received a lot of her attention lately. On Aug. 15, ARK acquired 646,849 Archer shares, quickly followed by a significant buy of 2.694 million shares the next day. 

As of now, Archer holds the 28th spot in Wood’s ARK Innovation ETF, accounting for 0.38% of the fund’s composition and commanding a market valuation of $1.56 billion.

Wood’s decision to bolster her stake in Archer seems to be paying off. Archer stock began this week with a robust 16% surge in its share price. Although the stock experienced fluctuations in the preceding days, the beginning of a fresh week indicates a stabilization in its performance. 

A noteworthy observation is Archer’s strong market standing, especially when compared to its primary competitor Joby Aviation. Over the past month, while Joby’s shares experienced a downward trend, Archer’s stock showcased an upward trajectory. This contrasting performance further highlights Archer’s strengthening position in the market.

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