Billionaire Ken Fisher is Selling These 5 Stocks

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

Number of Hedge Fund Holders: 56

Zoom Video Communications, Inc. (NASDAQ:ZM) is an American software and communications technology company that offers its platform for teleconferencing, telecommuting, distance education, and social relations.

Ken Fisher purchased a $340,000 stake in Zoom Video Communications, Inc. (NASDAQ:ZM) in Q3 2020, and held the stake until Q2 2021, before selling his $231,000 position in the company in the third quarter of 2021. 

On December 30, Citic Securities analyst Junyun Chen initiated coverage of Zoom Video Communications, Inc. (NASDAQ:ZM) with a Buy rating and a $260 price target. Zoom Video Communications, Inc. (NASDAQ:ZM)’s stock price has fallen by two-thirds from its peak last October, mainly reflecting market concerns about the decline in revenue growth after the pandemic, the loss of small and medium-sized business customers, and competition from Microsoft Corporation (NASDAQ:MSFT) Teams, the analyst told investors in a research note. However, current market concerns “are clearly excessive” and the stock is “oversold”, says the analyst, and despite the competition, Zoom Video Communications, Inc. (NASDAQ:ZM) maintains a “solid leading position.”

Chase Coleman’s Tiger Global Management is the largest Zoom Video Communications, Inc. (NASDAQ:ZM) stakeholder as of Q3 2021, with 4.76 million shares worth $1.24 billion. Overall, 56 hedge funds were long Zoom Video Communications, Inc. (NASDAQ:ZM) in the third quarter, with stakes equaling $6 billion. 

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

“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 video conferencing’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.”