What ever happened to ARKK’s top holding, Zoom Video Communications?

Cathie Wood, CIO and CEO of Ark Invest was once upon a time a big bullish advocate for Zoom Video Communications (NASDAQ:ZM) calling for a $1,500 price target by 2026, but now Wood doesn’t hold any shares of the online video platform technology company in any of her actively managed exchange traded funds.

At one point in time (June of 2022), the two exchange traded funds that had the largest portfolio allocations towards ZM on Wall Street were two of Wood’s actively managed funds, ARK Innovation ETF (NYSEARCA:ARKK) and ARK Next Generation Internet ETF (NYSEARCA:ARKW).

Back in June of 2022, ARKK had a 9.49% weighting in ZM and listed the stock as its top holding while ARKW held a 8.14% weighting and labeled the stock as its second largest holding.

What’s interesting is that Wood and her team at the time called for a price target for Zoom to hit $1,500 a share by 2026 as its expected case and added a bull scenario where the stock could tag $2,000 and a bear scenario where ZM would move to $700.

At the time of the call ZM was trading near $112 per share and the reality is that since the aggressive call a little over two years later, the stock has dropped 27% to $81.92 a share. Wood and her team have since made an about face move and have abandoned the stock altogether as it liquidated all its positions in ZM.

Moreover, this type of lofty call is not unusual for Wood and her team. Back in March of 2021 they claimed that Tesla (TSLA) can hit $7,000 per share, or $1,400 adjusted for its five for one stock split. Currently in the closing weeks of 2024 TSLA trades at $321 per share.

The ETF issuer also highlighted that shares of Roku (ROKU) can jump to $1,493 by 2026. That call was made back in July of 2022, ROKU currently trades at $73.82 a share.