Cathie Wood On Why Zoom Will Overtake Old Telecom Infrastructure

Benzinga2021-03-09

Ark Investment Management Founder and CEO Cathie Wood joined Benzinga’s “Raz Report” last week for an lexclusive interview and  shared her takeson several stocks, including Zoom Video Communications (NASDAQ: ZM).

Wood On Zoom: Wood said she was impressed with Zoom’s fourth-quarter earnings report. While many stay-at-home stocks peaked in the summer, Zoom is still seeing strong, triple-digit revenue growth.

“Zoom is playing in the largest part of the technology stack out there,” Wood said.

People don’t understand that Zoom is changing the telecommunications industry, the fund manager said.

“I think it’s going to usurp a lot of the old telco infrastructure.”

The estimates for Zoom are conservative, she said.

“It’s going to go much higher than that.”

There is negative sentiment around Zoom right now and questions on the price multiple. Wood views the stock as undervalued and said the multiple will look cheap if the company hits the targets Ark has laid out.

“Stay tuned,” Wood said.

Related Link: Roku Will Take Lion’s Share Of Streaming TV Market According To Cathie Wood

Ark Funds and Zoom: Zoom is a key holding in two of the Ark Funds ETFs.

The Ark Innovation ETF (NYSE: ARKK) owns 1.9 million shares of Zoom worth $652.9 million. Zoom is the ninth-largest holding in the ETF, representing 3.1% of assets.

The Ark Next Generation Internet ETF (NYSE: ARKW) owns 486 million shares of Zoom worth $164.2 million. Zoom is the tenth largest holding in the ETF, representing 2.4% of assets.

ZM Price Action: Shares of Zoom were down 3.99% at $323.96 at last check Monday. Shares of Zoom are up over 165% in the last year.

免责声明:本文观点仅代表作者个人观点,不构成本平台的投资建议,本平台不对文章信息准确性、完整性和及时性做出任何保证,亦不对因使用或信赖文章信息引发的任何损失承担责任。

精彩评论

发表看法
7