Cathie Wood's ARK Adds to Zoom Video (ZM) Following Sell-Off

Cathie Wood's ARK Investment Management added 839,301 shares of Zoom Video (NASDAQ: ZM) on Tuesday as shares slumped 16.5% following earnings and lower guidance.

Zoom Video reported an adjusted EPS of $1.05 on revenue of $1.10 billion, which compares to estimates of an adjusted EPS of $0.92 on revenue of $1.12 billion. However, the video conference company cut its full-year outlook and now expects revenue to come between $4.39 billion to $4.40 billion, which was worse than the prior range of $4.53 billion to $4.55 billion and the consensus of $4.54 billion. BTIG analyst Matt VanVliet downgraded the stock to Neutral following the results, citing macro headwinds contributing to the "somewhat concerning" pullback in FY23 profitability and FCF,

Shares of Zoom were added via two active ARK ETFs, the main ARK Innovation ETF (NYSE: ARKK) fund and ARK Next Generation Internet ETF (NYSE: ARKW).

Among other trades, ARK sold 293,661 shares of NVIDIA (NASDAQ: NVDA) and 954,387 shares of Signify Health, Inc. (NYSE: SGFY), as the stock spiked recently on reports of a bidding war between Amazon, UnitedHealth, and CVS.

By StreetInsider.com Staff

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