Why Zoom Stock Was Zooming on Wednesday | The Motley Fool – What’s Next For Zoom Stock?
Calculated by Time-Weighted Return since Volatility profiles based on trailing-three-year calculations of the standard deviation of service investment returns. Invest better with The Motley Fool. Get stock recommendations, portfolio guidance, and more from The Motley Fool’s premium services. Premium Services. Stock Advisor. View Our Services.
Our Purpose:. Latest Stock Picks. Key Points. The company’s acquisition of Five9 fell apart, throwing a wrench in its plan to diversify revenue.
Zoom stock has already been cut in half but could keep falling as growth halts and profits sink. Today’s Change. Zoom Video Communications. Motley Fool Returns Market-beating stocks from our award-winning service.
Stock Advisor Returns. Join Stock Advisor. Our Most Popular Articles. Get Started Now. For the quarter ended Jan. Subscribe or Sign In to continue reading Close Zoom Stock Falls as Revenue Growth Continues to Slow Zoom Video Communications posted better-than-expected financial results for its fiscal fourth quarter, but the stock is falling in late trading Monday after the company forecast weaker-than-expected results for both the fiscal first quarter and the current year.
Distribution and use of this material are governed by our Subscriber Agreement and by copyright law. For non-personal use or to order multiple copies, please contact Dow Jones Reprints at or visit www.
We’ve detected you are on Internet Explorer. Moving beyond videoconferencing. Although Zoom’s claim to fame was its videoconferencing platform, the company is looking to expand its presence into other businesses as it seeks to reaccelerate growth. One increasingly lucrative business segment that Zoom is eyeing is contact center software, which uses artificial intelligence to help companies interact with customers. Zoom now plans to launch its own solution in the space — Zoom Video Engagement Center — in early A spokesperson for the company declined to comment on the new service.
Keith Snyder, an analyst at independent investment research firm CFRA, said this is an extremely attractive market for Zoom, as it synergizes well with the company’s existing range of products, but entry may not be a cakewalk. Another area that Zoom is now exploring is advertising. The most positive aspect of the chart is the bullish divergence formed between the rising relative strength index and the falling stock price.
The RSI on Zoom has made three higher lows, while the stock has made a series of lower lows, indicating fading bearish momentum. Additionally, there appear to be two falling wedges that have formed, which are bullish reversal patterns. The first wedge can be seen in green and the second wedge in red.
The stock rose above the first green wedge pattern and now sits below the larger red falling wedge pattern. There’s a tremendous amount of risk in this, of course, because if Zoom misses numbers or gives poor guidance, the stock is likely to get crushed. There have been plenty of stocks that have been obliterated in recent weeks following poor results. Even the mega-caps like Amazon have fallen victim to this, and more recently, staples like Walmart and Target have seen very sharp declines.
A stock like Zoom would likely feel an even more significant impact from disappointing results. Zoom has fallen a lot, and as long as there are no surprises from Zoom’s management team, then the technicals and the options seem to suggest an upside opportunity is present, while valuations seem fairly valued currently.
Investing today is more complex than ever. With stocks rising and falling on very little news while doing the opposite of what seems logical.
Zoom Stock Extends Fall Amid Fears Growth Could Be Worse Than Advertised | Barron’s.
Zoom’s latest quarterly results were better than expected, but revenue growth continues to slow. And its new outlook was worse than. The stock is down nearly 80% since its October peak, due to a combination of slowing growth and reduced valuation multiples for technology.