Zoom (ZM, $66.39) makes a stellar stock market debut
Video conferencing software company Zoom debuted on NASDAQ on Thursday surging 80% to $65 and closing out the day up 72% at $62. At that price, the stock market is valued at $15.9 billion.
Unlike other players who debuted in this season like Lyft, Zoom is a profitable business. After filing for the IPO, the company estimated its share price range between $28 to $32, but it beat its own estimate and increased its range to $32-$35 with a company valuation of $9.2 billion. It earned it earned $7.58 million in net income last year with revenue surging to 118% to $330.5.
Analysts believe that with these figures, Zoom could become the benchmark for videoconferencing. It generated rapid growth with both cash and GAAP profitability as well as enterprise traction.
At its opening price, Zoom is priced at more than 50 times its enterprise value, the highest multiple by far for U.S. software companies. The share would trade under the ticker name “ZM”. At its opening price, Zoom is valued at about 50 times its enterprise value, which is by far the highest multiple for U.S. software companies.
ZM in downward trend: price dove below 50-day moving average on June 18, 2025
ZM moved below its 50-day moving average on June 18, 2025 date and that indicates a change from an upward trend to a downward trend. In of 41 similar past instances, the stock price decreased further within the following month. The odds of a continued downward trend are .
Technical Analysis (Indicators)
Bearish Trend Analysis
The Momentum Indicator moved below the 0 level on June 11, 2025. You may want to consider selling the stock, shorting the stock, or exploring put options on ZM as a result. In of 84 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 Moving Average Convergence Divergence Histogram (MACD) for ZM turned negative on May 23, 2025. This could be a sign that the stock is set to turn lower in the coming weeks. Traders may want to sell the stock or buy put options. Tickeron's A.I.dvisor looked at 40 similar instances when the indicator turned negative. In of the 40 cases the stock turned lower in the days that followed. This puts the odds of success at .
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 .
The Aroon Indicator for ZM entered a downward trend on June 18, 2025. This could indicate a strong downward move is ahead for the stock. Traders may want to consider selling the stock or buying put options.
Bullish Trend Analysis
The RSI Indicator points to a transition from a downward trend to an upward trend -- in cases where ZM's RSI Indicator exited the oversold zone, of 39 resulted in an increase in price. Tickeron's analysis proposes that the odds of a continued upward trend are .
The Stochastic Oscillator shows that the ticker has stayed in the oversold zone for 5 days. The price of this ticker is presumed to bounce back soon, since the longer the ticker stays in the oversold zone, the more promptly an upward trend is expected.
The 50-day moving average for ZM moved above the 200-day moving average on June 11, 2025. This could be a long-term bullish signal for the stock as the stock shifts 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 290 cases, the price rose further within the following month. The odds of a continued upward trend are .
ZM may jump back above the lower band and head toward the middle band. Traders may consider buying the stock or exploring call options.
The Tickeron PE Growth Rating for this company is (best 1 - 100 worst), pointing to consistent 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 strong sales and a profitable 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 slightly 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 (2.483) is normal, around the industry mean (31.737). P/E Ratio (31.271) is within average values for comparable stocks, (163.841). Projected Growth (PEG Ratio) (4.989) is also within normal values, averaging (2.724). Dividend Yield (0.000) settles around the average of (0.029) among similar stocks. P/S Ratio (4.411) is also within normal values, averaging (61.651).
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 88, placing this stock worse than average.
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General Information
a developer of video-first communications platform and application
Industry PackagedSoftware
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