Shares of Zoom Video Communications (ZM 0.82%) jumped sharply on Friday. As of 11:30 a.m. EDT, the stock was up about 4.5%.
Shares of the video collaboration platform specialist were likely up for two primary reasons. First, the broader market was up nicely on Friday -- especially many growth stocks like Zoom. Second, Cathie Wood's Ark Innovation ETF, which grew in popularity in 2020 when the exchange-traded fund crushed the market as it bet heavily on innovative and fast-growing companies, reportedly purchased over 96,000 shares of the company on Thursday. This news may have helped spark interest from more investors.
Wood's meaningful purchase of Zoom stock on Thursday may be a bullish signal for some investors who have come to appreciate her bold bets. This may have led to some other investors buying Zoom stock on Friday in an attempt to follow in Ark Investment's footsteps.
As far as the overall market on Friday, the S&P 500 was up about 0.7% as of this writing. The tech-heavy Nasdaq Composite, however, was up 1.4%. A bullish day for tech likely helped Zoom stock.
Zoom recently reported stellar fiscal first-quarter results, with revenue during the period soaring 191% year over year to $956.2 million.
"Work is no longer a place, it's a space where Zoom serves to empower your teams to connect and bring their best ideas to life," said Zoom CEO Eric Yuan in the company's fiscal first-quarter earnings release. "We are energized to help lead the evolution to hybrid work that allows greater flexibility, productivity, and happiness to both in-person and virtual connections."
It's not surprising to see Ark Invest buying the dip in Zoom stock, as the video collaboration company is the type of innovator Cathie Wood often bets on.