Zoom stock has corrected sharply in the past few trading days. However, the tide can turn in the middle of the week. The reason for this is the fact that American star investor Cathy Wood has increased its stake in the video conferencing provider. Wood has a surprising rationale for their investment.
Zoom shares were recently under pressure after the quarterly figures were presented due to mounting growth concerns: trading closed on Tuesday about 15% lower. Star investor Wood took advantage of this setback to expand the magnification of her investment company: according to the news agency Bloomberg ARK Investment Zoom bought shares for about $133 million.
The founder of Ark Investment said in an interview with CNBC Wednesday. Wood also said, “Many people see Zoom as a simple video chat service. However, this is not the case, Zoom is evolving into a unified communication system.”
In US premarket trading, Zoom shares were trading half an hour before the start of trading, down about 0.8 percent at $205.05. This appears to at least weaken the downside: the paper fell as low as $195.80 on Tuesday.