Breaking Down Ro Khanna’s Unsuccessful Investment on ZoomInfo

ZoomInfo (ZI:US) shares closed nearly 20% lower last week after the software company’s senior executive reflected negatively on current business trends. In the first week of November, ZI stock crashed nearly 30% on disappointing results.

The share price is now down by almost 43% compared to its high value in October and as much as 66% compared to the all-time high set last November. 

Speaking at the RBC conference last week, ZoomInfo’s Chief Financial Officer Cameron Hyzer told investors to prepare for slowing growth in the coming quarters, according to Bloomberg. "We don't see any evidence currently that that macroeconomic pressure is going to subside or turnaround quickly in the short term," Hyzer said.

ZoomInfo has been a popular stock for retailer traders since going public in 2020 with shares increasing over 150% from September 2020 to November 2021. The company has been able to deliver strong top-line growth. However, the tightening monetary policy has had a negative impact on ZoomInfo, forcing the company’s management to temper investors’ expectations going forward.

Hyzer added that it is “prudent” to expect ZI to grow 4-5% in each quarter next year. For comparison purposes, ZoomInfo recorded a 46% revenue growth year-over-year in its third quarter.

Looking at the CapitolTrades data, one can see that Congressman Ro Khanna has been consistently trading ZoomInfo shares this year. Rep. Khanna invested in ZoomInfo via six trades this year, all worth between $1,000 to $15,000.

The lowest price that Rep. Khanna paid for a single ZoomInfo share was in the low $30s with the highest price easily exceeding $50 a share. Although he sold some ZoomInfo shares in June, he is still considered holding a stake in the software company. 

ZoomInfo’s stock price closed at $26.61 on Friday, November 18.