Has Zoom Lost its Zip?
If any stock defined the age of Covid, it would be Zoom Video Communications. Now the videoconferencing disrupter could be showing that sentiment has truly moved on.
ZM has steadily trended lower since peaking near $590 on October 19. It fell on the November 9 vaccine news, and again December 1 -- despite a very strong quarterly report the night before.
ZM is now clinging to an early-September support level around $350. It could be a make-or-break level, with risk of further selling if it fails.
TradeStation data showed that call volume is down by about half since early December. (From about 147,000 calls per day to just 73,000.) That’s another sign of interest waning in the name.
Finally, valuations remain abnormally high -- even after its 40 percent drop. ZM's price/earnings is about 230 times and price/sales is more than 50 to 1.
(This chart features our Smart Relative Strength custom script.)
TradeStation is a pioneer in the trading industry, providing access to stocks, options, futures and cryptocurrencies. See our Overview for more.
ZM has steadily trended lower since peaking near $590 on October 19. It fell on the November 9 vaccine news, and again December 1 -- despite a very strong quarterly report the night before.
ZM is now clinging to an early-September support level around $350. It could be a make-or-break level, with risk of further selling if it fails.
TradeStation data showed that call volume is down by about half since early December. (From about 147,000 calls per day to just 73,000.) That’s another sign of interest waning in the name.
Finally, valuations remain abnormally high -- even after its 40 percent drop. ZM's price/earnings is about 230 times and price/sales is more than 50 to 1.
(This chart features our Smart Relative Strength custom script.)
TradeStation is a pioneer in the trading industry, providing access to stocks, options, futures and cryptocurrencies. See our Overview for more.
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