Zoom Video (ZM, $206.64) beats Q3 earnings expectations
Zoom Video posted third quarter earnings that surpassed analysts’ expectations.
The video conferencing company’s adjusted earnings for the three months ending October came in at $1.11 per share, above the $1.09 per share expected by analysts polled by Refinitiv.
Revenue rose +35% from the year-ago quarter to $1.05 billion also topped analysts’ estimates of $1.02 billion.
In the latest quarter, Zoom said it had cancelled plans to acquire cloud contact center software provider Five9 for $14.7 billion. Zoom also announced that its own cloud contact center software would be launched in early 2022.
For the fiscal fourth quarter, Zoom projects adjusted earnings of $1.06 to $1.07 per share—compared to $1.05 forecast from analysts polled by Refinitiv. The company expects revenue in the range of $1.051 billion to $1.053 billion, vs. $1.02 billion in revenue expected by analysts polled by Refinitiv.
ZM in downward trend: price may drop because broke its higher Bollinger Band on May 22, 2023
ZM broke above its upper Bollinger Band on May 22, 2023. This could be a sign that the stock is set to drop as the stock moves back below the upper band and toward the middle band. You may want to consider selling the stock or exploring put options. The A.I.dvisor looked at 35 similar instances where the stock broke above the upper band. In of the 35 cases the stock fell afterwards. This puts the odds of success at .
Technical Analysis (Indicators)
Bearish Trend Analysis
The 10-day RSI Indicator for ZM moved out of overbought territory on May 23, 2023. This could be a bearish sign for the stock. Traders may want to consider selling the stock or buying put options. Tickeron's A.I.dvisor looked at 29 similar instances where the indicator moved out of overbought territory. In of the 29 cases, the stock moved lower in the following days. This puts the odds of a move lower at .
The Momentum Indicator moved below the 0 level on June 01, 2023. You may want to consider selling the stock, shorting the stock, or exploring put options on ZM as a result. In of 72 cases where the Momentum Indicator fell below 0, the stock fell further within the subsequent month. The odds of a continued downward trend are .
The 10-day moving average for ZM crossed bearishly below the 50-day moving average on June 02, 2023. This indicates that the trend has shifted lower and could be considered a sell signal. In of 9 past instances when the 10-day crossed below the 50-day, the stock continued to move higher over the following month. The odds of a continued downward trend are .
Following a 3-day decline, the stock is projected to fall further. Considering past instances where ZM declined for three days, the price rose further in of 62 cases within the following month. The odds of a continued downward trend are .
Bullish Trend Analysis
The Stochastic Oscillator suggests the stock price trend may be in a reversal from a downward trend to an upward trend. of 47 cases where ZM's Stochastic Oscillator exited the oversold zone resulted in an increase in price. Tickeron's analysis proposes that the odds of a continued upward trend are .
The Moving Average Convergence Divergence (MACD) for ZM just turned positive on May 08, 2023. Looking at past instances where ZM's MACD turned positive, the stock continued to rise in of 35 cases over the following month. The odds of a continued upward trend are .
ZM moved above its 50-day moving average on May 31, 2023 date and that indicates a change from a downward trend to an upward trend.
Following a 3-day Advance, the price is estimated to grow further. Considering data from situations where ZM advanced for three days, in of 228 cases, the price rose further within the following month. The odds of a continued upward trend are .
The Aroon Indicator entered an Uptrend today. In of 190 cases where ZM Aroon's Indicator entered an Uptrend, the price rose further within the following month. The odds of a continued Uptrend are .
Fundamental Analysis (Ratings)
The Tickeron PE Growth Rating for this company is (best 1 - 100 worst), pointing to outstanding earnings growth. The PE Growth rating is based on a comparative analysis of stock PE ratio increase over the last 12 months compared against S&P 500 index constituents.
The Tickeron Price Growth Rating for this company is (best 1 - 100 worst), indicating steady price growth. ZM’s price grows at a higher rate over the last 12 months as compared to S&P 500 index constituents.
The Tickeron SMR rating for this company is (best 1 - 100 worst), indicating weak sales and an unprofitable business model. SMR (Sales, Margin, Return on Equity) rating is based on comparative analysis of weighted Sales, Income Margin and Return on Equity values compared against S&P 500 index constituents. The weighted SMR value is a proprietary formula developed by Tickeron and represents an overall profitability measure for a stock.
The Tickeron Valuation Rating of (best 1 - 100 worst) indicates that the company is significantly overvalued in the industry. This rating compares market capitalization estimated by our proprietary formula with the current market capitalization. This rating is based on the following metrics, as compared to industry averages: P/B Ratio (3.060) is normal, around the industry mean (31.480). ZM's P/E Ratio (3333.333) is considerably higher than the industry average of (167.649). Projected Growth (PEG Ratio) (3.383) is also within normal values, averaging (4.158). Dividend Yield (0.000) settles around the average of (0.068) among similar stocks. P/S Ratio (4.604) is also within normal values, averaging (75.604).
The Tickeron Profit vs. Risk Rating rating for this company is (best 1 - 100 worst), indicating that the returns do not compensate for the risks. ZM’s unstable profits reported over time resulted in significant Drawdowns within these last five years. A stable profit reduces stock drawdown and volatility. The average Profit vs. Risk Rating rating for the industry is 89, placing this stock worse than average.
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Industry description
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High and low price notable news
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Fundamental Analysis Ratings
The average fundamental analysis ratings, where 1 is best and 100 is worst, are as follows
General Information
a developer of video-first communications platform and application
Industry PackagedSoftware
ZM and
Correlation & Price change
A.I.dvisor indicates that over the last year, ZM has been closely correlated with RNG. These tickers have moved in lockstep 69% of the time. This A.I.-generated data suggests there is a high statistical probability that if ZM jumps, then RNG could also see price increases.
