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5 Investors Betting Big on Zoom (ZM) Stock Right Now


  • Zoom (ZM) is still struggling even after raising guidance.
  • However, institutional investment in ZM stock remains mostly strong.
  • The company’s CEO remains its top shareholder as of Q1.
"ZM stock" - 5 Investors Betting Big on Zoom (ZM) Stock Right Now

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No stock is more closely associated with the Covid-19 pandemic than Zoom (NASDAQ:ZM). The popular video conferencing platform shot to the top of Wall Street’s radar as the world sheltered in place. Three years later, the world is finally shifting back towards normalcy, and some pandemic-winner stocks are struggling to adapt. Since peaking in October 2020 at more than $560 per share, ZM stock has come down significantly. Wall Street is highly bearish on the company. This is evidenced by the fact that 14 out of 20 analysts rate it as a “hold.” As InvestorPlace contributor Muslim Farooque recently reported:

“Recent operating results for Zoom have shown only single-digit revenue growth in the past three quarters. Additionally, the number of customers with more than 10 employees using the platform is also down by 6%. These metrics were on fire for the business during the pandemic years, and the precipitous drop spells more trouble for the company ahead. Its stock shed more than 30% of its value last year and will likely tank further.”

Things haven’t been looking up since he issued that take. While the company recently raised its annual forecast, it hasn’t done much to boost shares, which remain in the red today. However, through it all, institutional sentiment toward Zoom remains mixed but is not overwhelmingly negative. Cathie Wood has been notoriously bullish on ZM stock, but she isn’t the only one still betting on it. Let’s take a look at the other names.

Top 5 Investors Betting Big on ZM Stock

According to data from Whale Wisdom, the number of funds holding ZM stock fell by 3% during the previous quarter. Additionally, the number of 13F shares dipped slightly. The number of new positions did not change, remaining at 85. The number of increased positions shot up 19%, and the number of closed positions decreased by almost the same amount. However, ZM stock still boasts a high put/call ratio of 1.37, indicating that bearish sentiment toward it is increasing.

Even so, the company’s top 5 investors don’t seem overly concerned.

  1. Eric S. Yuan: 22,640,402 shares. The company’s CEO remains its top investor, although he recently decreased his holdings by 534,016 shares.
  2. Vanguard Group: 20,338,953 shares. The mutual fund giant recently added 131,663 shares of ZM stock in Q1.
  3. Li Ka-shing: 13,588,649 shares. This billionaire from Hong Kong just doubled down on ZM, adding 3,729,497 shares.
  4. BlackRock (NYSE:BLK): 12,837,056 shares. The financial services behemoth recently added 104,955 shares to its Zoom holdings.
  5. ARK Investment Management: 10,867,033 shares. Cathie Wood’s fund remains one of Zoom’s top investors. It recently added 251,142 shares.

On the date of publication, Samuel O’Brient did not have (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 InvestorPlace.com Publishing Guidelines.

Samuel O’Brient has been covering financial markets and analyzing economic policy for three-plus years. His areas of expertise involve electric vehicle (EV) stocks, green energy and NFTs. O’Brient loves helping everyone understand the complexities of economics. He is ranked in the top 15% of stock pickers on TipRanks.

Article printed from InvestorPlace Media, https://investorplace.com/2023/05/5-investors-betting-big-on-zoom-zm-stock-right-now/.

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