Zoom's management often underpromises and overdelivers, but the current guidance nevertheless indicates growth will dip below 50% later this year. However, full-year growth of 50% implies a massive slowdown from the 191% year-over-year rate just posted in Q1. At any other time this would be great news. The outlook for full-year fiscal 2022 was also upgraded, now implying full-year revenue growth of about 50% to a range of $3.975 billion to $3.990 billion (a more than $200 million increase over prior expectations for fiscal 2022 provided three months ago). Year-to-date price action: ZM -37.3%, ARKK -52.6%, and ARKW -51.1%.Data source: Zoom Video Communications.

See the complete price target note by Ark Invest.

In generating the price target on Zoom, ARK analyzed the adoption of hybrid/remote working models, ZM’s monetization of its user base, evaluation of gross margins, projections of the company’s EV/EBITDA, as well as other factors. This equates to a $856.57M market value and places ZM as ARKK’s number one holding.įollowing ARKK is the ARK Next Generation Internet ETF ( NYSEARCA: ARKW) which lists ZM as the fund's second largest holding at 8.14% with a market value of $130.73M. The innovation-focused investment group’s flagship ARK Innovation ETF ( NYSEARCA: ARKK) holds the most significant weighting in ZM at 9.49%. Since ZM’s peak, the video communication firm has crashed 80%.Īt the moment, the two exchange traded funds that have the largest portfolio weightings in ZM are two of Wood’s actively managed funds. Even her bear case points to a stock price of $700 - more than 6x current levels.įor more reference, Zoom traded at $112.15 in Thursday's early action and reached as high as $588.84 during the peak of COVID lockdowns back in Oct.

Wood, who has long been a bull on ZM, noted that ARK’s bull case scenario suggests that the stock could rise as high as $2,000.

That would equate to more than 13 times its current stock price of around $112 and would represent compounding annual growth of 76%. Cathie Wood and ARK Invest made an aggressive call that Zoom Video Communications ( NASDAQ: ZM) could reach a stock price of $1,500 by 2026.

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