The company's name quickly became a verb as friends, family, and co-workers tried to stay connected. And Zoom overcame the unforeseen challenges that resulted from heavy consumer usage of a product that was intended for businesses.
Now that growth is coming back to earth, the stock has fallen 51% from its high last year. Despite that, there are several good reasons to think Zoom could stage a rebound. And one reason it might not.
In the second quarter of last year, Zoom saw sales climb more than 350% and customers with more than 10 users jump over 450%. That led to some issues. Management pledged a 90-day moratorium on feature development and dedicated all of its time to security and privacy. It executed its seven-point plan and avoided what could have been a growth-crushing problem.
Zoom continues to innovate. Recent announcements at its Zoomtopia conference include video voicemails, whiteboard, and live translation. It also highlighted applications for high-touch use cases like doctor visits and wealth management. Some might argue none are revolutionary. But the incorporation of all of these tools into a video communications platform makes it a compelling product for the enterprises it is targeting.
On the technical side of things ZM is currently sitting at support while it’s formed a descending triangle.
We can also see that the MACD is curling w/ the RSI sitting at an oversold level on the daily chart.
I suggest keeping this on your watchlist.
- Factor Four
Side note; Regardless of the pattern it doesn’t mean I’m bearish on ZM.
I’m actually fairly bullish long term.
Now that growth is coming back to earth, the stock has fallen 51% from its high last year. Despite that, there are several good reasons to think Zoom could stage a rebound. And one reason it might not.
In the second quarter of last year, Zoom saw sales climb more than 350% and customers with more than 10 users jump over 450%. That led to some issues. Management pledged a 90-day moratorium on feature development and dedicated all of its time to security and privacy. It executed its seven-point plan and avoided what could have been a growth-crushing problem.
Zoom continues to innovate. Recent announcements at its Zoomtopia conference include video voicemails, whiteboard, and live translation. It also highlighted applications for high-touch use cases like doctor visits and wealth management. Some might argue none are revolutionary. But the incorporation of all of these tools into a video communications platform makes it a compelling product for the enterprises it is targeting.
On the technical side of things ZM is currently sitting at support while it’s formed a descending triangle.
We can also see that the MACD is curling w/ the RSI sitting at an oversold level on the daily chart.
I suggest keeping this on your watchlist.
- Factor Four
Side note; Regardless of the pattern it doesn’t mean I’m bearish on ZM.
I’m actually fairly bullish long term.
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