Ark Invest — which some, together with “Big Short” investor Michael Burry, have referred to as too dangerous — has all the time targeted its consideration on “disruptive innovation,” betting large on (largely) tech leaders in an try and ship enormous returns to its buyers.
Its newest guess entails Zoom (ZM) – Get Free Report, a video conferencing software program firm that skyrocketed in reputation throughout the distant atmosphere of covid-19.
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The buy, made on May 23 and totaling round $17 million, was unfold throughout two of Wood’s ETFs. Ark’s flagship Innovation ETF picked up 230,964 shares, whereas Ark’s Next Generation Internet ETF acquired 36,168 shares.
The transfer got here a day after Zoom beat analyst estimates in its fiscal first-quarter earnings report. The software program firm reported a 3% improve in gross sales to $1.1 billion, incomes $1.16 per share in revenue.
Zoom additionally raised its gross sales forecast.
The video-conferencing firm has been flagging within the post-pandemic period; its 52-week excessive, which it skilled in July of 2022, was $124.5 per share.
Zoom closed on May 23 at $65.65 per share and proceeded to fall round 2% within the morning of May 24, in a return to its pre-pandemic worth.
CEO Eric Yuan introduced layoffs in Feb. 2023 that amounted to round 1,300 individuals, or about 15% of Zoom’s workforce.
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Source: www.thestreet.com
