Mario Gabelli is Selling These 5 Stocks

In this article, we discuss the 5 stocks that Mario Gabelli is selling. If you want our detailed analysis of Gabelli’s history, investment philosophy, and hedge fund performance, go directly to Mario Gabelli is Selling These 10 Stocks.

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

Number of Hedge Fund Holders: 56

Zoom Video Communications, Inc. (NASDAQ:ZM) is a California-based communications technology that enables teleconferencing, telecommuting, remote work and education, and social relations. 

In Q1 2021, Mario Gabelli purchased 2,596 shares of Zoom Video Communications, Inc. (NASDAQ:ZM), worth $834,000. He increased his stake in Zoom Video Communications, Inc. (NASDAQ:ZM) by roughly 10% in Q2, and in the third quarter of 2021, Mario Gabelli sold his $1.10 million position in the company. 

Wells Fargo analyst Michael Turrin on December 13 lowered the price target on Zoom Video Communications, Inc. (NASDAQ:ZM) to $200 from $245 to reflect multiple compression across the software space. The analyst kept an Equal Weight rating on the shares.

Among the hedge funds tracked by Insider Monkey, 56 hedge funds were bullish on Zoom Video Communications, Inc. (NASDAQ:ZM), down from 59 funds in the quarter earlier. Tiger Global Management held the leading stake in Zoom Video Communications, Inc. (NASDAQ:ZM) as of Q3 2021, 4.76 million shares $1.24 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.”