These 5 Reddit Stocks Are Getting Crushed in March

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

1-Month Decline in Share Price as of March 29: 8.18%

Number of Hedge Fund Holders: 48

Zoom Video Communications, Inc. (NASDAQ:ZM) is an American communications platform that enables online video, voice, chat, and content sharing. Although the company reached new highs at the peak of the COVID-19 pandemic, it has been losing value ever since the virus situation has come under relative control. In the last month, the stock declined 8.18% and multiple Redditors posted losses on their bullish Zoom Video Communications, Inc. (NASDAQ:ZM) calls. 

On March 15, Wells Fargo analyst Michael Turrin lowered the price target on Zoom Video Communications, Inc. (NASDAQ:ZM) to $105 from $145 on multiple compression in broader software. The analyst maintained an Equal Weight rating on the shares.

According to Insider Monkey’s Q4 data, 48 hedge funds held long positions in Zoom Video Communications, Inc. (NASDAQ:ZM), down from 56 funds in the prior quarter. ARK Investment Management owned the biggest stake in the company, worth $1.2 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.”