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Cathie Wood’s Ark Buys More Zoom as It Slumps on Growth Concerns

Stock MarketsNov 24, 2021 02:09AM ET
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© Reuters Cathie Wood’s Ark Buys More Zoom as It Slumps on Growth Concerns

(Bloomberg) -- Cathie Wood stepped up buying of Zoom Video Communications (NASDAQ:ZM) Inc. after the stock slumped as earnings failed to address concerns over growth amid economic reopening. 

ARK Investment Management, which is already one of the largest shareholder of the video conferencing company, bought about $133 million worth of shares on Tuesday as they closed 15% down to their lowest since June 2020. 

The flagship ARK Innovation ETF (NYSE:ARKK) bought 538,573 shares of Zoom while ARK Next Generation Internet ETF (NYSE:ARKW) bought 106,537 shares, according to the asset manager’s daily trading updates. Ark has been accumulating Zoom’s shares this month.

Wood’s buying on dips in Zoom comes at a time when shares of pandemic winners from the U.S. to Malaysia are struggling amid economic reopening. Zoom saw about $100 billion wiped out from its market value since its October 2020 peak, which is a decline of 64% for the stock. Despite the pullback, the stock is still up nearly 500% since its 2019 debut.

Zoom on Tuesday reported a smaller-than-projected number of large customers for a second straight quarter, stoking concerns about growth as more workplaces and schools open back up. Bank of America Corp. downgraded the stock to neutral from buy, saying the results and outlook “suggest that reopening headwinds continue to weigh on growth.”

Wood and her firm frequently say that they have at least a five-year investment horizon, and acknowledge that the disruptive companies they target are often volatile. 

The daily trading updates from Ark show only active decisions by the management team and do not include creation or redemption activity caused by investor flows. For that reason, the firm’s exact trading activity may vary.

©2021 Bloomberg L.P.

 

Cathie Wood’s Ark Buys More Zoom as It Slumps on Growth Concerns
 

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Comments (5)
Todd Gray
Todd Gray Nov 26, 2021 6:21PM ET
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Bet she heard of the new variant, before we did.
Sudeysi sufiyaan
Sudeysi sufiyaan Nov 26, 2021 3:08AM ET
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👍
Meself Meself
Meself Meself Nov 25, 2021 11:12PM ET
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cathiloves wood buy zoom and sibian
Jokers R Us
Jokers R Us Nov 25, 2021 8:17PM ET
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A fool and their money shall soon depart
MK MK
MK MK Nov 24, 2021 12:08PM ET
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Sell every spike in the trash
 
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