Cathie Wood-led ARK Investment Management bought over 267,000 shares of communications technology company $Zoom Video Communications (ZM.US)$ at an estimated valuation of over $17.5 million based on Tuesday's closing price.

The stake hike was done via the $ARK Innovation ETF (ARKK.US)$ and the $ARK Next Generation Internet ETF (ARKW.US)$. Zoom is the second largest holding of the ARK Innovation ETF with a weight of 7.76%, according to the latest data available on the global asset manager's website.

Wood's purchase of Zoom shares comes on a day when the stock closed over 8% lower following the company's earnings announcement and a broader Nasdaq sell-off over the debt ceiling impasse. Zoom's first-quarter revenue increased 3% year-over-year to $1.11 billion, which beat an average estimate of $1.08 billion, according to Benzinga Pro.

GAAP net income attributable to common stockholders for the first quarter stood at $15.4 million compared to $113.6 million in the first quarter of fiscal year 2023.

The company said it expects second-quarter revenue between $1.11 billion and $1.115 billion versus an estimate of $1.11 billion. Full-year revenue is expected to come in between $4.465 billion and $4.485 billion versus an estimate of $4.45 billion.

Zoom's guidance, however, shows that growth is expected to continue to slow from its pandemic peak, which could have weighed on the stock. On a year-to-date basis, Zoom shares are down by over 1.5%.

Major Sale: ARK also sold over 36,000 shares of sports betting company $DraftKings (DKNG.US)$ at an estimated valuation of over $878,000 based on Tuesday's closing price.