One of the ARK exchange-traded funds run by ETF star Cathie Wood made a huge purchase on Tuesday. Accordingly this fund bought over 250,000 shares of Zoom Video Communications, Inc. (NASDAQ: ZM) shares on Tuesday, as the price of this ETF lost about 2% in Tuesday’s sell-off. Note that this ETF is up well over 100% in the last year.

ARK Innovation ETF (NYSEARCA: ARKK) bought 255,621 shares of Zoom Video. At Tuesday’s closing price this would have valued this purchase at roughly $95 million. Even though this is a small fraction of the total holdings, every little bit counts. ARKK is up 151% in the last year.

Zoom Video is not a product of the pandemic, but its success most certainly is. The video conferencing company has seen a remarkable surge in the use of its products. It remains to be seen if this success continues if and when the spread of COVID-19 slows and people begin to return to offices. Its other challenge is that it faces a number of well-regarded competitors, some of which also have large installed customer bases.

Zoom demonstrated its dominance in the industry when it reported its most recent quarterly earnings. Revenue rose 369% to $882.5 million. As Zoom tries to prove its staying power, it has over $4.2 billion in cash and securities, an impressive bankroll.

Its stock is up roughly 230% this year to a market cap of about $109 billion. If video conferencing remains a backbone of 21st century communications, Zoom should continue to prosper.

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