Cathie Wood snapped up $57 million worth of Zoom stock after the company tumbled 17% on disappointing outlook

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Cathie Wood snapped up $57 million worth of Zoom stock after the company tumbled 17% on disappointing outlook
Ark Invest and Omar Marques/SOPA Images/LightRocket via Getty Images
  • Cathie Wood snapped up 200,000 shares of Zoom on Tuesday as the company tumbled 17% on disappointing outlook.
  • This amounted to $57 million, with roughly $45.5 million bought by ARKK and around $11 million by ARKW.
  • Zoom's Tuesday sell-off came even as the company beat quarterly earnings forecasts.

Famed stock picker Cathie Wood snapped up 200,000 shares of Zoom Video Communications on Tuesday, amounting to $57 million, as the video-conferencing company tumbled 17% on a disappointing outlook.

Wood's ARK Innovation ETF bought 157,233 shares worth roughly $45.5 million while her ARK Next Generation Internet ETF purchased 36,847 shares at a roughly $11 million valuation, according to a daily trading update distributed via email.

Zoom shares rallied as much as 3.4% on Wednesday.

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The video-conferencing firm's stock fell on Tuesday after the company predicted that its revenue will roughly flatline for the rest of the year, with the lifting of coronavirus restrictions set to weigh on the customer demand. The stock slide, its biggest since November 2020, came despite the company's second-quarter earnings beating expectations.

Zoom was one of the most popular companies that benefitted from the pandemic when large swathes of the world were shut down to curb the spread of the virus. Its revenue for the quarter rose 355% year-on-year.

Still, company CFO Kelly Steckelberg said this pace of growth will be challenging to maintain after pandemic restrictions ease.

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Zoom isn't Wood's first bet on COVID-friendly companies. She also doubled down on virtual healthcare firm Teladoc Health earlier this year, which she bought following a sharp fall in the company's share price.

Teladoc, at one point in March 2021, was the largest holding in the ARK Genomic Revolution ETF and was tied for the third-largest holding in the ARK Innovation ETF with Roku.

The ARK Invest CEO in July also scooped up shares of Robinhood Markets right after the brokerage app's debut, purchasing nearly 1.3 million shares worth over $45 million.

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