Cathie Wood’s ARK Buys Zoom After the Stock Plunges, Sells Nvidia Ahead of Earnings
C athie Wood’s ARK exchange-traded funds purchased more than 839,000 shares of Zoom Video Communications after the stock plunged following the videoconferencing company’s cut to its fiscal-year guidance.
Wood’s ARK Innovation ETF (ticker: ARKK) purchased 713,062 shares of Zoom (ZM), while the ARK Next Generation Internet ETF (ARKW) bought 126,239 shares, according to the daily trades posted by the ARK funds. Zoom shares fell Tuesday by 16.5% to $81.32. At that price, the ARK funds purchased about $68.25 million of Zoom.
Shares of Zoom, which saw soaring demand for its services in the early months of the pandemic, have tumbled 56% this year as growth has slowed as people return to work, the economy weakens, and the company faces heightened competition. The stock was up 0.4% in premarket trading Wednesday.
According to Bloomberg, ARK’s purchases of Zoom stock were its first in three months.
Meanwhile, Wood’s ARK funds sold more than 293,000 shares of Nvidia (NVDA) on Tuesday. The chip maker is scheduled to report fiscal second-quarter earnings after the closing bell Tuesday. Earlier this month, Nvidia pre-announced disappointing results for the period, saying it expects quarterly revenue of $6.7 billion, significantly below its $8.1 billion prior guidance.
Nvidia shares closed Tuesday at $171.81.