Billionaire David Rubenstein Is Betting Big on ZoomInfo (ZI) Stock


  • ZoomInfo Technologies (ZI) is battling a difficult year.
  • However, one Wall Street billionaire is betting big on ZI stock.
  • David Rubenstein of the The Carlyle Group (CG) believes in the potential of ZoomInfo, which is his top holding.
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As 2022 comes to a close, many people are pondering one question: Is a recession coming? One expert says yes.

David Rubenstein is the co-founder of private equity firm The Carlyle Group (NASDAQ:CG). Recently, he laid out where he believes the U.S. economy is headed next. As Rubenstein sees it, rising interest rates will push gross domestic product (GDP) downward, making recession inevitable. But even as he issues a bleak economic outlook, the Wall Street icon remains bullish on a few stocks. His top holding is ZoomInfo Technologies (NASDAQ:ZI). Although ZI stock has struggled this year, Rubenstein doesn’t seem swayed.

Let’s take a look at the company Rubenstein has staked so much on.

What’s Happening With ZI Stock?

Market conditions throughout 2022 haven’t been good for tech stocks and ZoomInfo is no exception. Shares have shed more than 50% year-to-date (YTD), although they have recently picked up some momentum. As of this writing, ZI stock is up more than 2% for the day and has spent most of the month trending upward. This growth likely isn’t due to Rubenstein’s stake, but it is worth a closer look.

ZoomInfo is Rubenstein’s largest holding, accounting for 39% of the Wall Street icon’s portfolio. His investment in the software and data provider is worth roughly $1.6 million. Despite its recent declines, ZI stock has given investors like Rubenstein plenty of reason to be optimistic. TipRanks reports:

“ZoomInfo’s latest financial statement, for Q3, was a strong one. Revenue climbed by 45.5% year-over-year to $287.6 million, beating the Street’s forecast by $9.12 million. Likewise for adj. EPS, which almost doubled from the year-ago quarter from $0.13 to $0.24 whilst also coming in ahead of the $0.20 consensus estimate.”

TipRanks also notes that Rubenstein isn’t the only one with a bullish stance on ZI stock. The site’s average rating consensus for ZoomInfo is a “strong buy,” with 18 analysts maintaining “buy” ratings on the stock. Most recently, Credit Suisse analyst Rich Hilliker issued an “outperform” rating and highly bullish $55 price target.

Other experts have issued similar takes on ZoomInfo. InvestorPlace contributor Ian Bezek recently predicted that ZI stock will soar as market conditions improve. As Bezek notes, the company is known for its vast database but also provides other important services that give it an edge over competitors. While ZoomInfo’s third-quarter earnings results did create some turbulence, Bezek views that as an overreaction from the market.

What Comes Next?

With all this in mind, it’s not hard to see why Rubenstein is so bullish on ZI stock. Shares of ZoomInfo boast more positive sentiment on TipRanks than Rubenstein’s next largest holding, QuidelOrtho (NASDAQ:QDEL), which accounts for 37% of his portfolio. That said, fewer analysts have issued ratings for QDEL stock. Further, both stocks have been trending upward lately and seem well-positioned to continue rising.

In any case, Rubenstein’s long, successful track record certainly speaks for itself. ZoomInfo seems like his next winner, even if a recession does come to pass.

On the date of publication, Samuel O’Brient did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the Publishing Guidelines.

Article printed from InvestorPlace Media,

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