(Reuters) – Star investor Cathie Wood’s funds scooped up $56.5 million worth of shares in Zoom Video Communications Inc, taking advantage of a 17% drop in the company’s stock price on Tuesday after warning on slowing demand.
Wood’s bet on Zoom and other pandemic winners such as online healthcare service provider Teladoc Health Inc had helped her ARK Innovation’s portfolio outperform all other U.S. equity funds in 2020, although the fund has lagged this year.
Asset manager Ark Invest said it added about $45.5 million shares of Zoom to the flagship ARK Innovation ETF and about $11 million in the ARK Next Generation Internet ETF.
The video conferencing company issued a dour forecast of 31% rise in third-quarter revenue compared with the multiple-fold growth rates seen last year amid remote work and schooling.
Its shares have nearly halved in value compared to their peak in October last year as the pandemic-boom started to fade. Meanwhile, the $25.5 billion ARKK is down about 2% for the year, clawing back from losses of about 22%.
Separately, ARK Fintech Innovation ETF added about $11.5 million shares of Robinhood Markets Inc. Wood’s interest in the popular trading app after its weak market debut in late-July partly drove a rally in the stock.
Zoom shares were up 0.9% to $292.16 in premarket trading.
(Reporting by Medha Singh in Bengaluru; Editing by Arun Koyyur)
