ZOOM $ZM Might be the most Overpriced Stock in History?
Updated
Price to earnings ratio is over 1000, everyone and their mother is trying to buy this stock, literally. I had multiple family members (none of whom are involved in actively managed investing or trading) reach out to me asking if I had purchased zoom shares. From a hindsight PoV, at the bottom, it would have made a lot of technical sense to do so, at current prices however, this looks like a BYND situation, where a company is accelerating in price without any clear reason. I don't really have an entry or target strategy yet, will need to watch price closely. I would probably play this via put options rather than margin shorting, because these types of rallies can always peak higher than you think they can.
A decisive breakdown from the "magic line" 30 Daily Moving Average is probably a good place to start.
A decisive breakdown from the "magic line" 30 Daily Moving Average is probably a good place to start.
Note
Given some recent trend shifts in the industry, and the prominence of work from home. I no longer believe this analysis is valid. Price is still hugely overbought, but I do not anticipate a long term collapse in price.
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