10 Tech Stocks to Sell Now According to Cathie Wood

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

Percentage of stake sold by ARK Invest in Q3: 100%

ARK Investment Management’s Q3 Stake Value: $0

Number of Hedge Fund Holders: 39

Zoom Video Communications Inc. (NASDAQ:ZM) is a software and communications technology company known for its video conferencing app, Zoom. Constantly improving its offerings, the company recently introduced a new Zoom webinar feature that can hold up to 1 million participants, demonstrating the obvious scalability advantage and revolutionizing the way companies can engage with audiences.

In a bullish move, Jefferies raised the price target on ZM from $85 to $100 and upgraded the stock from a Hold to a Buy back in December. The upgrade comes in tandem with a favorable assessment of the company’s prospects through 2025. The possibility that AI could speed up revenue growth is one of the main factors driving the update.

The company came under serious attention after releasing its third-quarter 2024 earnings report. Zoom exceeded forecasts with a 4% year-over-year revenue increase, hitting $1.178 billion. In Fiscal 2025, Zoom Video Communications Inc. (NASDAQ:ZM) expects total revenue to be between $1.175 billion and $1.180 billion, a result of the company’s attempts at increasing its spending percentage among existing clients by implementing creative solutions.