ARK Invest Adds to Zoom Position and Reduces Nvidia Holdings

ARK Invest, headed by prominent investor Cathie Wood, has made significant moves in its portfolio recently. During a recent trading update, ARK purchased over $8 million worth of Zoom Video Communications stock while also selling shares of Nvidia.

According to the update, ARK acquired 122,831 shares of Zoom (ZM) through its flagship ARK Innovation exchange-traded fund and its ARK Next Generation Internet ETF. At the same time, the Next Generation Internet ETF sold 2,230 shares of Nvidia (NVDA), amounting to just over $1 million.

Although Nvidia experienced a 2.7% decline in stock value on Tuesday, the company has seen an overall increase of nearly 12% in the past seven trading sessions. This rise is attributed to the anticipation surrounding Nvidia's upcoming earnings report, scheduled to be released after market hours on Wednesday.

Zoom, on the other hand, saw a 2% drop in its shares on Tuesday, despite exceeding earnings and revenue expectations. Wall Street analysts, while acknowledging the positive results, expressed caution due to concerns about the company's visibility and potential negative impacts from macroeconomic pressures.

However, Cathie Wood remains confident in Zoom's prospects and believes that the company, which gained prominence during the Covid-pandemic era, can thrive even in a post-pandemic world.

In terms of Nvidia, the ARK Innovation Fund had previously sold its holdings in January, missing out on the chip maker's impressive 212% surge in 2023. Wednesday's earnings report will determine whether Wood's decision was erroneous or if she made the right call this time.