5 Cloud Computing Stocks to Buy According to Cathie Wood

3. Zoom Video Communications, Inc. (NASDAQ:ZM)

Number of Hedge Fund Holders: 57

An American communications tech company, Zoom Video Communications, Inc. (NASDAQ:ZM) offers services through a cloud-based peer-to-peer software platform. In Q3, the company saw a spike in the number of hedge funds having stakes in it. 57 hedge funds tracked by Insider Monkey were bullish on Zoom Video Communications, Inc. (NASDAQ:ZM), up significantly from 35 in the previous quarter. These stakes hold a consolidated value of roughly $2 billion, up from $670.2 million in Q2.

In Q3, ARK Investment Management increased its position in Zoom Video Communications, Inc. (NASDAQ:ZM) by 21%, and now holds a $2.1 billion worth of stake. The company represents 2.77% of the hedge fund’s 13F portfolio. In Q3, Zoom Video Communications, Inc. (NASDAQ:ZM) posted an EPS of $1.11, beating the analysts’ consensus by $0.01.

Zoom Video Communications, Inc. (NASDAQ:ZM) outperformed low analysts’ expectations in Q3, asserted Meta Marshall of Morgan Stanley, who lifted her price target on the stock to $365 in November, which represents a 40% upside. She kept an Overweight rating on the shares.

Artisan Partners mentioned Zoom Video Communications, Inc. (NASDAQ:ZM) in its Q1 2021 investor letter. Here is what the firm has to say:

“We concluded our campaigns in Zoom Video Communications. We have been paring our position in Zoom for several quarters, anticipating the reduced need for video conferencing as vaccination rates climb and people return to their workplaces. That said, we believe there is a strong case to be made that the pandemic has prompted a permanent inflection in videoconferencing’s importance—sustainably higher remote work arrangements, more online learning and less business travel. Furthermore, the company’s dramatically expanded user base (up 485% YoY in Q3) positions it well to cross sell additional services, Zoom Phone in particular. The long-term future remains bright, but we decided to end our successful investment campaign in favor of opportunities in our pipeline with more attractive near-term growth prospects.”