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Zoom stock goes full circle, hovers at pre-pandemic levels
Zoom Video Communications, Inc. Class A Common Stock (ZM) Advanced Charting – Nasdaq offers advanced charting & market activity data for US and global. Shares of Zoom Video Communications (NASDAQ: ZM) climbed % on Tuesday after the videoconferencing-leader’s earnings results were well. There’s been something interesting happening with shares of conference call technology stock Zoom Video (NASDAQ: ZM) in recent weeks.
Signing out of account, Standby Indeed, it was only last Friday that the latter hit fresh lows as the current market-wide sell-off continue to gather pace, while Zoom’s most recent low was tagged back on the 12th May. It’s important to point out however that once we go beyond the timeline of the past two weeks, the divergence ends pretty quickly. But are there reasons to think the spread won’t get any wider and are there signs of a bid starting to creep into Zoom?
Let’s take a look. For starters, the company’s fiscal Q1 earnings which came out at the end of Monday’s session gave investors plenty to think about. We believe these innovative solutions will further expand our market opportunity for future growth and expansion with customers” he said. In addition to the innovative side of the company, he highlighted the financial results, saying that “we delivered revenue of over one billion dollars driven by ongoing success in Enterprise, Zoom Rooms, and Zoom Phone, which reached 3 million seats during the quarter.
Perhaps the biggest surprise , and likely the main reason for the strong bid, was the forward guidance given by Yuan and his management team. For any bag holders, or perhaps more optimistically for anyone considering getting involved around here, this could be the signal we’ve been waiting for. Having been beaten down relentlessly for 18 months, while becoming a poster child for the post-pandemic pop in stocks , Zoom could be on the verge of a recovery rally.
But buyers beware. The teams at Coatue Management, Citi, and Piper Sandler have all either cut their price target or dropped their rating on the stock in recent weeks. The bulls might call this the final capitulation that we’ll look back on in the months to come, and they actually mightn’t be all that wrong. In reality, how much more downside can be priced into Zoom shares? Few could call their shares expensive down here, especially as they’re now back at their pre-pandemic levels.
Shares have been hurt badly by the rising interest rate environment they find themselves in, and investors haven’t been this averse to paying for longer term growth stories for many years.
But there is a future ahead of Zoom, and at some point you have to be thinking their fortunes will turn around.
Aside from last October, they’ve had 11 red months in a row, but are currently outperforming the wider market in recent weeks. Let’s see what happens as we head into the summer. Emily Rella. Devan Leos. Anna Johansson. Skip to content Profile Avatar. Subscribe to Entrepreneur. Magazine Subscriptions. By Sam Quirke May 26, This story originally appeared on MarketBeat.
Decent Earnings For starters, the company’s fiscal Q1 earnings which came out at the end of Monday’s session gave investors plenty to think about. Entrepreneur Editors’ Picks. Most Popular.
News and trends. Emily Rella May 11, Devan Leos Jun 2, Future of entrepreneurship. Anna Johansson Jun 4, Successfully copied link.