ZoomInfo and Cloudflare

While it was hard to figure out why the stock price of Cloudflare keeps going up, it is equally baffling to see why ZoomInfo would go down disproportionately to other of our stocks, like during yesterday where it went down by around 11% compared to our other stocks that were only in the negative 3%-5% territory.
Typically, the stocks that go down a higher percentage during market sell-off, would rebound the higher percentage when the market perception changes. But ZoomInfo seems to be one of the exceptions.
What is it that the market sees in ZoomInfo where the price does not go up as much, but goes down higher than others during days like yesterday?


Re: Zoominfo

carlyle group and TA associates are private equity, owning about 100M shares and 115M shares of zoominfo respectively at IPO date. It’s like half of all shares!

They have been trying to exit their position for a long time but they have so many shares to offload.

In August they priced two separate secondary offerings that dumped 47 million shares, for example.

I think they are selling like literally every single day per the Form 4. It’s why I turned off email alerts from their SEC filings, it’s become daily spam!

I bet two days from now we will see Nov 30 dated Form 4 filings showing millions more shares were dumped on the market today.

Still have a long way to go.

Even though the business is chugging along fine, share price will still get knocked down for weeks, maybe months? Until they are done. So it can be viewed as an opportunity to slowly load your position…or to stay away until it’s over (opportunity cost). The same can be said for UPST as Third Point is exiting too but they own far less percent of shares than Zoominfo’s counterpart, so it won’t be as prolonged.


Muji would know best about cloudflare, I am sure, but I can only speculate the exact opposite is happening here. A few big institutions are seeing something most market participants don’t see in the long term for NET, and hoarding/picking up shares ASAP.


I was just tipped by a fellow TMF member that the reason for ZI may have to do with Carlyle Group and TA Associates trying to offload a total of over 200 million shares.

I did not intend to post this because I am swamped so all I could do was a quick search but since you asked, here is what came up right away:


Carlyle, Nov 19:
Nov 19 nearly 500,000 https://www.sec.gov/Archives/edgar/data/933790/0000899243210…
Nov 18 272,000
Nov 17 517,000
Nov 15 371,000
Nov 12 446,000
Nov 8 360,000
Nov 5 601,000
Oct 29 101,000
Oct 18 256,000
Oct 15 267,000
Oct 13 341,000
Sep 27 350,000

They now have 49,403,472 left. At this rate…:slight_smile:

Here is TA Associates:

Again, I would only use this as a lead, I have spent a few minutes on it but could be a big part of the answer.


Oh, well, there you have it, @JohnWayne beat me by 3 minutes. I am sure he has spent more than a few minutes looking into this :slight_smile:

Another thing to remember is algorithmic momentum strategies that amplify the movements in both directions.