Why This Top Stock Of Cathie Wood's Portfolio Is Sinking Today

Shares of Zoom Video Communications Inc. ZM were sliding in premarket trading on Tuesday.

What Happened: The San Jose, California-based provider of unified communications platform reported late on Monday third-quarter non-GAAP earnings per share of $1.07, ahead of the 84-cent per share consensus estimate. Revenue climbed 5% year-over-year to $1.101 billion compared to the average analysts’ estimate of $1.1 billion.

See Also: Tesla On Track To Snap 4-Session Slide But Nasdaq, S&P 500 Futures Edgy As Rate Worries Weigh — These Tech, Oil Stocks In Focus Today

Among the customer metrics, enterprise customers rose 14% to 209,300, and online average monthly churn dipped 60 basis points to 3.1%, while the trailing 12-month net dollar expansion rate for enterprise customers stood at 117%.

The company, however, issued mixed guidance for the fourth quarter and the full year, triggering concerns regarding a growth slowdown.

Zoom Video is the top holding of Cathie Wood-owned Ark Invest’s flagship Ark Innovation ETF ARKK and Ark Next Generation Internet ETF ARKW. The firm expects Zoom Video shares to skyrocket to $1,500 in 2026.

Price Action: In premarket trading on Tuesday, Zoom Video shares were sliding 9.28% to $72.81, according to Benzinga Pro data.

 

Date
ticker
name
Actual EPS
EPS Surprise
Actual Rev
Rev Surprise
Posted In: EarningsNewsTechTrading IdeasARK InvestCathie Woodwhy it's moving
We simplify the market for smarter investing

Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.

Join Now: Free!

Loading...