Star stock picker Cathie Wood buys Zoom dive, invests over $ 56 million
Sept. 1 (Reuters) – The funds of star investor Cathie Wood recovered $ 56.5 million in shares of Zoom Video Communications Inc (ZM.O), benefiting from a 17% drop in the price of the The company shares Tuesday after warning of slowing demand.
Wood’s bet on Zoom and other pandemic winners such as online health service provider Teladoc Health Inc (TDOC.N) had helped his ARK Innovation portfolio outperform all other equity funds. in 2020, although the fund has fallen behind this year.
Asset manager Ark Invest said it added around $ 45.5 million of Zoom shares to flagship ARK Innovation ETF (ARKK.P) and around $ 11 million to ARK Next Generation Internet ETF.
The video conferencing company released a grim forecast of a 31% increase in third-quarter revenue from the multiple growth rates seen last year in remote work and schooling.
Its shares almost halved from their peak in October last year as the pandemic boom began to fade. Meanwhile, the $ 25.5 billion ARKK is down about 2% for the year, recouping losses of about 22%.
Separately, ARK Fintech Innovation ETF (ARKF.P) added approximately $ 11.5 million in shares of Robinhood Markets Inc (HOOD.O). Wood’s interest in the popular trading app after his weak market debut in late July partly led to a rally in the stock.
Zoom shares rose 0.9% to $ 292.16 in pre-market trading.
Report by Medha Singh in Bengaluru; Editing by Arun Koyyur
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