ZM (Zoom) reported fine earnings but the numbers now prove what has been suspected, the ZM growth trajectory has flattened and will likely stay that way until...🤷♂️ This doesn't imply a bad business or problem, simply that it's going to take more time for Zoom to grow into the company ARK thinks it will become.
Zoom is a platform that will likely remain important for years to come as the business world continues to employ a hybrid communications model. But it was that growth trajectory that lead to the big multiple Zoom enjoyed. We now have a resetting of expectations as analysts have lowered estimates which moved the stock down 20% in the days following earnings.
Zoom is a solid, profitable company...
They'll continue to grow and be a company to watch but, as stated in posts before, these valuations did get fairly stretched leaving zero room for earnings to be anything other than a blowout.
ARK owns 2.23% of the company. It's the 5th largest holding across the portfolio.