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Zoom stock rallied approximately 406.28% last year but dropped around 25.41% in the past three months.
Zoom Video Communications Inc (NASDAQ: ZM) stock closed Wednesday’s trading session at $382.80, down approximately 2.81%. The bears were further in control during Thursday’s pre-market as they were trading around $382.50. However, the company anticipates a prosperous quarter and to add into it the next one. According to its estimates, Zoom expects a record growth of approximately 426.7% in the current quarter. Besides, the company further expects growth of approximately 260% in the next quarter.
The results are expected to spur up investors not to dump but accumulate more zoom stock in the coming quarters. Notably, Zoom stock has been trapped in a falling trend since hitting its all-time high late last year.
However, Zoom stocks are at a critical crossroad both technically and fundamentally. First, basing the argument on the technicality, Zoom stocks are retesting a major support level. A level that they broke out last year after the coronavirus outbreak. Besides, they are retesting the 200 moving average in the daily chart. If the current downtrend is a correction, then we should expect a further breakout beyond its prior all-time high.
If the buyers are not strong enough, we could see Zoom stock further plummet in the coming weeks or months.
Zoom Stock Fundamentals: Growth Expected
From the fundamental standpoint of view, Zoom stocks are enjoying the stay-at-home period caused by the coronavirus pandemic. Zoom may continue enjoying the period until such a time when several coronavirus vaccines are approved for mass use.
Most office-going global employees and students are still using Zoom Video Communications to access normal services. If Zoom is capable of capitalizing on the huge customer base and diversifying successfully into other businesses, Zoom stock may continue thriving after the pandemic.
However, if the company does not successfully diversify in time before normalcy resumes, Zoom stock may get difficult times ahead. Notably, Zoom has seen Year-on-year quarterly revenue growth of approximately 366.5%.
Analysts and investors will closely be watching the numbers, especially for the coming quarters. In addition, considerations of a possible stimulus package from Biden’s administration are likely to affect zoom stock.
As more businesses reopen slowly, a notable stimulus check could further imply more recovery. In addition, with more vaccines likely to be approved in the coming quarters, more people are likely to resume on-site working conditions.
Zoom stock rallied approximately 406.28% last year but dropped around 25.41% in the past three months. The company has a reported market valuation of approximately $114.97 billion with 204.6 million outstanding shares.