Zoom (ZM): Zoom Bottoming Out? Major Accumulation Signs!A stock we previously considered "dead" and seemingly on its last legs is Zoom. Despite its current low standing, it warrants another look.
Zoom is currently trading around its lowest level ever, approximately $58 to $59. This is a stark contrast to its all-time high of $588, marking a significant sell-off following the end of the COVID-19 pandemic. Stocks like Zoom are challenging to evaluate due to the massive fluctuations in value.
Historically, Zoom has tested and held the $250 level seven times, but now, for the first time, it’s been in a prolonged sideways movement. This could indicate an accumulation phase, often seen when stocks are at their lowest, suggesting that Zoom might be finding a bottom.
Moreover, there's a trendline within this accumulation phase that has been touched three times, reinforcing the possibility that Zoom is stabilizing. This trendline might act as a support level, potentially leading to a period of growth or at least stability.
Zooming in further, we notice that during this accumulation phase, there are four notable touchpoints on the trendline. While two points dip slightly lower, this is not overly concerning given the overall price action. The trading volume within this phase is visible and consistent, with price movements often oscillating around the Point of Control (POC) at $67. Prices fluctuate above and below this level but tend to return to the POC, indicating strong trading interest at this price point.
Currently, Zoom has the potential to rise towards $72, which corresponds to the High Volume Node Edge. This movement could involve a retest of both the trendline and the POC. A successful retest and subsequent breakout from these levels could provide the necessary momentum to break out of the accumulation phase, potentially opening the door for significant upward movement.
In summary, while Zoom has faced a dramatic decline, the current price movement and trendline support could indicate a phase of accumulation, suggesting that it might not be entirely out of the game yet. While this scenario is intriguing, it is also fraught with risk. Therefore, we are opting to remain on the sidelines for now, monitoring the situation closely.
ZMD trade ideas
Zoom Video Communications Reports Results for First QuarterZoom Video Communications ( NASDAQ:ZM ) has raised its annual forecast for profit and revenue, citing robust demand for its product portfolio as companies continue to adopt hybrid work. The company's efforts to incorporate artificial intelligence (AI) and broaden its range of services have been successful, with the introduction of Zoom Workplace, an AI-powered, open collaboration platform in March, along with new AI companion expansions first unveiled in September last year, for paid users. Zoom, along with platforms like Microsoft's Teams and Cisco's CSCO.O, opens new tab Webex, are pandemic darlings, which most businesses and individuals turned to for connecting with employees and friends.
The company now expects 2025 revenue of about $4.61 billion to $4.62 billion, up from its earlier forecast of about $4.6 billion. Analysts expect revenue of $4.61 billion, according to LSEG data. On an adjusted basis, it expects full-year earnings between $4.99 and $5.02 per share, compared with its previous forecast of between $4.85 and $4.88. For the second quarter, Zoom sees revenue between $1.145 billion and $1.150 billion, slightly below analysts' average estimate of $1.15 billion.
The company posted revenue of $1.14 billion, up 3.2%, for the first quarter ended April 30 and above analysts' expectations of $1.13 billion. Zoom Video Communications ( NASDAQ:ZM ) reported financial results for the first fiscal quarter of fiscal year 2025, with total revenue of $1,141.2 million, up 3.2% year over year as reported and 3.5% in constant currency. Enterprise revenue was $665.7 million, up 5.3% year over year, and Online revenue was $475.5 million, flat year over year.
Income from operations and operating margin was $203.0 million, compared to GAAP income from operations of $9.7 million in the first quarter of fiscal year 2024. Non-GAAP net income for the first quarter was $426.3 million, after adjusting for stock-based compensation expense and related payroll taxes, acquisition-related expenses, restructuring expenses, litigation settlements, net, and the tax effects on non-GAAP adjustments. Non-GAAP net income per share was $1.35. In the first quarter of fiscal year 2024, non-GAAP net income was $353.3 million, or $1.16 per share.
Cash and marketable securities were $7.4 billion, with net cash provided by operating activities being $588.2 million for the first quarter, compared to $418.5 million in the first quarter of fiscal year 2024, up 40.6% year over year. Free cash flow, which is net cash provided by operating activities less purchases of property and equipment, was $569.7 million, compared to $396.7 million in the first quarter of fiscal year 2024, up 43.6% year over year.
Customer metrics for total revenue included acquiring new customers, with 3,883 customers contributing more than $100,000 in trailing 12 months of revenue, up approximately 8.5% from the same quarter last fiscal year.
Technical Outlook
Zoom Video Communications stock ( NASDAQ:ZM ) has been forming a Trough and Crest pattern or should and Neck pattern concurrently for the past 1 year now. The stock is down 1.69% in Premarket Trading approaching support level of $61 a move that will validate a bearish reversal.
5/20/24 - $zm - leaning +ve but not EPS layup... confusing setup5/20/24 - vrockstar - NASDAQ:ZM - as much as thef fundamental "gut" tells me this is a layup into earnings, DD FCF yields, when adj. for net cash the PE is 8-9x. in theory if the sales *don't* decline this year - that's stupid cheap. also any talk of AI tools and ppl's willingness to use/pay for additional features should send this thing. on the converse, the growth really is anemic. so timing this really seems more of a tea leaves reading exercise. the balance of risk seems skewed positively but i may fund a call spread by selling some variant of P's or related spread/ undecided just yet - where i'm willing to own this lower or eat the downside risk. tape seems willing to pause ahead of NVDA later this week, which means it's unlikely we get an x-factor unrelated to eps that moves us one way or another. lmk what you think in the comments if you have a POV. i've traded this one for some time. feels like BABA but without the growth. hrm.
ZM Zoom Video Communications Options Ahead of EarningsIf you haven`t bought ZM before the previous earnings:
Then, after analyzing the options chain and the chart patterns of ZM Zoom Video Communications prior to the earnings report this week,
I would consider purchasing the 65usd strike price Calls with
an expiration date of 2024-12-20,
for a premium of approximately $8.00.
If these options prove to be profitable prior to the earnings release, I would sell at least half of them.
I saw this one comingA massive double bottom apparently is forming out here. As you can see the price has tried to break the 75 level a few times before. Now is going to try again and is pushing with a lot of volume this time. I have a long position here. It may take a few more weeks to consolidate before break out. But it is worth the waiting.
ZM: Zoom is zooming into a black hole of disasterThere is almost noting bullish about ZM. After the huge selloff for months it's been a bear flag consolidation for weeks. With general market weakness intensifying, ZM has no chance here. Most likely in lower double digits to single digit in the next year or so. We might see a bounce first due to RSI oversold conditions, but wouldn't expect much. It will be a pump and dump scheme for investors to get out. They have no use case left as Microsoft and Apple have cornered the market for video conference. I hope google or some other big tech buy them out and put them out of their misery. I don't own or hold any stocks, so I have no skin in the game, but this is just sad to watch. I like the product better than teams or face time. But market doesn't like it and that's what counts.
ZM Zoom Video Communications Options Ahead of Earnings If you haven`t sold ZM before the previous earnings:
Then analyzing the options chain and the chart patterns of ZM Zoom Video Communications prior to the earnings report this week,
I would consider purchasing the 61usd strike price in the money Calls with
an expiration date of 2024-3-1,
for a premium of approximately $3.95.
If these options prove to be profitable prior to the earnings release, I would sell at least half of them.
$ROKU reversal trade ideaNothing crazy here but NASDAQ:ROKU continues to follow that downward trendline and respects the previous supports broken. If this turns down from the current test of resistance then the short play is intact.
BUT if the trendline is broken along with resistance, then this setup is nice to take long considering that the RSI indicator appears to be bottoming a well.
Zoom performs above expectations (28/02/2024)Zoom Video Communications Inc. reported adjusted earnings of $1.22 per share on revenue of $1.15 billion, while analysts surveyed by LSEG had expected earnings of just $1.15 on revenue of $1.13 billion.
Corporate clients increased by 3.5% over the year to 220.4k. In addition, the issuer announced a share buyback of $1.5 billion. Against this backdrop, Zoom shares began to rise as the company traded below the average values of many multiples.
So, today, we have decided to look at the Zoom Video Communications, Inc. (NASDAQ: ZM) stock chart.
On the D1 timeframe, support has shifted to 62.95, and resistance has been surpassed at 64.48. Also, yesterday, 27 February, a breakout of the descending channel appeared on the chart, signalling an upward shift in the trend.
On the H1 timeframe, a rebound from the 64.48 level could set a short-term target for a price increase at 74.64, while in the medium term, it could hover around 80.88.
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Is ZM Finally Buyable?ZM longs have been absolutely eviscerated since 2020. One of the quintessential names of the 2020 exuberance, it has since seen a 90% drawdown from the 2020 high to the 2023 low late last year.
However, ZM has seen a trading range between 60 and 75 for almost a year now. This basing has clear analogs to Wyckoff accumulation, and the failed breakdown in October with low volume and no follow through could have finally put in a durable bottom. The 50SMA crossed above the 200SMA in January, providing a clue about the possibility for a shift in trend on this beaten down name.
If ZM sees markup and can break out of this accumulation range, it is possible we could see a gap fill of the August 2022 earning gap around 97.4.
As a trade, a tight stop at the recent low of 63.06 presents a very favorable setup, with a potential > 10:1 RR.
There was a time when ZM was a clear no-touch, and for good reason. But after the absolute destruction in value over the last few years, to finally allow price to re-align with more reasonable valuation levels, this name can finally be taken back out of the penalty box.
ZOOM Backwards, minus Z, plus N equals MOON (Moon Math edition)Lines labeled.
Watch Trends.
Note Daily Time Frame.
Personally, I like 103 on a potential move to the upside.
There is a possibility of some small downside in the short term, but it's a favorable buy if you're bullish on Zoom.
Gap closes just over 100, I believe, so I'd use caution at that point.
I could see something like this if it wants to ride those short term trends upwards.
Breakout over this trend is likely to cause the higher price targets.
ZOOM OUT (lol, puns)
Weekly view.
RSI is the thing to note here. 74 vs 72 looking at a bounce, If you don't know indicators, this simply implies bullish still, it can break down pretty easily, but it needs to close the week that way.
This allows for a bigger view, which helps show how the price can justify such large swings.
Extreme lows are 14 and under.
Zoom (ZM) Looking to Breakout after Extended ConsolidationI really like this opportunity from ZM here. The stock is cheap on many metrics and the market is pricing in a bearish case. If ZM can post even minimal growth in 2024, the stock should rip.
We've had almost a year of consolidation in this $60-$74 range and we're attempting to break out. It's just a matter of time.
I'm targeting ~$97 to fill the gap made in August 2022. After such a long period of consolidation, a breakout should cause some short covering and bring in traders on a technical basis. If we break below the range, it would signal a failure and I would cut my losses
High probability trade
Target: $97 (+34%)
Stop Loss: $58 (-19%)
- Sultan of Chart
Zoom (ZM) beat Q3 FY2024 revenue estimates with a 3.2% YoY- 📈 Zoom (NASDAQ:ZM) beat Q3 FY2024 revenue estimates with a 3.2% YoY increase to $1.14 billion.
- 💹 Revenue guidance for the full year exceeded analysts' estimates, but Q4 guidance of $1.13 billion was 0.3% below expectations.
- 💰 Non-GAAP EPS improved to $1.29 per share, up from $1.07 per share in the same quarter last year.
- 📊 Free Cash Flow increased by 56.6% to $453.2 million, and Net Revenue Retention Rate was 105%.
- 🌐 Zoom reported 3,731 enterprise customers paying more than $100,000 annually, a slight increase from the previous quarter.
- 📉 Despite beating revenue expectations, Zoom's Q3 results showed a modest 3.2% YoY growth, prompting attention to sales decline and slowing large customer momentum.
- 📉 The net revenue retention rate of 105% missed expectations, but the market is rewarding Zoom for robust cash generation.
- 📊 Zoom's stock is up 6% post-reporting, trading at $70.02 per share with a market capitalization of $19.3 billion and a $6.49 billion cash balance.