Cathie Wood’s Ark Invest Buys Over 250,000 Shares of Zoom Video
One of Cathie Wood's Ark Invest funds bought over 250,000 shares of Zoom Video on March 2.
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One of the ARK exchange-traded funds run by ETF star Cathie Wood made a huge purchase on Tuesday. Accordingly this fund bought over 250,000 shares of Zoom Video Communications, Inc. (NASDAQ: ZM | ZM Price Prediction) shares on Tuesday, as the price of this ETF lost about 2% in Tuesday’s sell-off. Note that this ETF is up well over 100% in the last year.
ARK Innovation ETF (NYSEARCA: ARKK) bought 255,621 shares of Zoom Video. At Tuesday’s closing price this would have valued this purchase at roughly $95 million. Even though this is a small fraction of the total holdings, every little bit counts. ARKK is up 151% in the last year.
Zoom Video is not a product of the pandemic, but its success most certainly is. The video conferencing company has seen a remarkable surge in the use of its products. It remains to be seen if this success continues if and when the spread of COVID-19 slows and people begin to return to offices. Its other challenge is that it faces a number of well-regarded competitors, some of which also have large installed customer bases.
Zoom demonstrated its dominance in the industry when it reported its most recent quarterly earnings. Revenue rose 369% to $882.5 million. As Zoom tries to prove its staying power, it has over $4.2 billion in cash and securities, an impressive bankroll.
Its stock is up roughly 230% this year to a market cap of about $109 billion. If video conferencing remains a backbone of 21st century communications, Zoom should continue to prosper.
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Chris Lange is a financial and geopolitical writer with more than a decade of experience covering a myriad of topics. He has published thousands of articles for 24/7 Wall St., with past coverage focused heavily on stocks, IPOs, healthcare, defense, global affairs, and technology.
His work has been quoted, or referenced by a number of outlets including Business Insider, USA Today, Yahoo Finance, MSN, The Motley Fool, and many other publications. A graduate of Southwestern University, he studied business with a focus on investments and has previous experience in banking and startups.
When not reading or writing the news, he is following his passion for Lacrosse, playing chess, or building solar projects with his dad.
