Ark Invest -- which some, including "Big Short" investor Michael Burry, have called too risky -- has always focused its attention on "disruptive innovation," betting big on (largely) tech leaders in an attempt to deliver huge returns to its investors.
Its latest bet involves Zoom (ZM), a video conferencing software company that skyrocketed in popularity during the remote environment of covid-19.
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The purchase, made on May 23 and totaling around $17 million, was spread across two of Wood's ETFs. Ark's flagship Innovation ETF picked up 230,964 shares, while Ark's Next Generation Internet ETF acquired 36,168 shares.
The move came a day after Zoom beat analyst estimates in its fiscal first-quarter earnings report. The software company reported a 3% increase in sales to $1.1 billion, earning $1.16 per share in profit.
Zoom also raised its sales forecast.
The video-conferencing company has been flagging in the post-pandemic era; its 52-week high, which it experienced in July of 2022, was $124.5 per share.
Zoom closed on May 23 at $65.65 per share and proceeded to fall around 2% in the morning of May 24, in a return to its pre-pandemic value.
CEO Eric Yuan announced layoffs in Feb. 2023 that amounted to around 1,300 people, or about 15% of Zoom's workforce.
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