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


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

(Bloomberg). — Cathie Wood increased her buying Zoom Video Communications (NASDAQ:) Inc. following the stock’s slump as earnings failed address concerns about growth during economic reopening. 

ARK Investment Management is already the biggest shareholder in the video conferencing firm. On Tuesday, they bought $133 million of shares and closed at 15% below their highest level since June 2020. 

The flagship ARK Innovation ETF (NYSE:) bought 538,573 shares of Zoom while ARK Next Generation Internet ETF (NYSE:) 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’s market value dropped by 64% since October 2020, when it reached its peak. This is an amount of $100 billion. However, Zoom is up almost 500% over its debut in 2019.

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 team often say they have at most a five year investment horizon and admit that many of the companies that Wood targets are highly volatile. 

Ark’s daily updates on trading show only management decisions and don’t include redemption activity or creation caused by investor flows. For that reason, the firm’s exact trading activity may vary.

©2021 Bloomberg L.P.


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