Why Zoom Stock Zoomed Past the Market Today
Zoom Video Communications (NASDAQ: ZM) was a popular Hump Day stock, rising by nearly 3% and well eclipsing the gain of the S&P 500 index. News of a closely followed investor's big buy was the catalyst for the mini-spike in price.
That investor was none other than ARK Invest founder Cathie Wood. Despite some recent missteps, she remains doggedly bullish on the tech sector. Two of ARK Invest's exchange-traded funds (ETFs), ARK Innovation ETF and ARK Next Generation Internet ETF combined bought a total of 839,301 Zoom shares throughout Tuesday.
Wood and ARK Invest don't typically offer running commentary for their purchases. It's likely that this one is a "buy an incumbent stock on weakness" situation as Zoom really got dinged on Tuesday.
Source Fool.com
