$ZM - Zoom Trading near its IPO price
Is there music in Zoom?
Introduction
At its opening price of $65 on April 18th, 2019, Zoom (ZM) was valued at about 50 times its enterprise value, which was by far the highest multiple seen in U.S. software companies, according to analysts of FactSet.
During the COVID period, with everybody working from home and needing video conference software and Zoom supplies, Zoom’s business expanded rapidly. We all remember these Zoom sessions very well.
Zoom reached an all-time high of $588.84. Since then, Zoom has been declining and recently reached a low of $63, close to the price levels on the IPO date.
Today, Zoom drew my attention as one of the time/price level alerts was hit, and I decided to share my quick notes on this once very popular stock. Is there still music in Zoom?
In this quick analysis for the premium subscribers, I will make a Gann-like analysis to determine if a low has been reached and what to expect in the future in price and time. I will also briefly comment on the fundamentals using recent FastGraphs/FactSet research.
This analysis is intended for general informational & educational purposes only. Hypothetical or simulated performance based on past cycles has many limitations. Cycles can contract, extend, and invert. Anomalies can occur. Hence, past performance is no guarantee for the future. No advice. Please take a look at our full disclaimer.