In a major portfolio shift, Cathie Wood’s ARK Investment Management has sold a significant portion of its Zoom Video Communications (ZM) stock holdings.
From July 9-12, the ARK Innovation ETF unloaded 438,037 shares of the videoconferencing company, valued at $25.2 million. Zoom’s stock has struggled, dropping 19% year-to-date and 90% from its 2021 peak, currently trading at $58.50.
The company’s pandemic-fueled growth has waned as some workers return to the office. Despite the sell-off, ARK still maintains a sizable position in Zoom, with the stock ranking as the 23rd largest holding in the ARK Innovation ETF, valued at $102.5 million.
Morningstar analyst Dan Romanoff believes Zoom has a “narrow moat” and assigns a fair value of $89 per share, 52% above the current trading price. Concurrently, ARK has made a major purchase of 440,689 shares of 10X Genomics, a biotechnology company focused on single-cell and spatial analysis tools.
This strategic shift reflects ARK’s continued focus on innovative technology companies that align with Wood’s long-term investment thesis.