Cathie Wood Is Almost Certainly Wrong About Zoom Stock
Cathie Wood is head of Ark Invest, an investment firm that manages various exchange-traded funds (ETFs). Its flagship ETF is the Ark Innovation ETF (NYSEMKT: ARKK), in which Zoom Video Communications (NASDAQ: ZM) stock is the top holding and makes up nearly 11% of the fund.
On June 8, Ark Invest made headlines by predicting that Zoom stock would reach $1,500 per share by 2026 -- more than a 13-bagger from where the stock trades right now. I think Wood is almost certainly wrong on this price. But allow me to explain why I still believe it's directionally correct and why you should care.
Ark Invest actually has three price targets for Zoom: a bear case of $700 per share, a medium case of $1,500, and a bull case of $2,000. These numbers aren't pulled from thin air, but rather are based on a series of clearly articulated assumptions about Zoom's business.
Source Fool.com
