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Regulated by
Suruhanjaya Sekurity Bank Negara Malaysia
Regulated by
Suruhanjaya Sekurity Bank Negara Malaysia

Is the sell down of Zoom warranted?

Summary: Zoom shares soared 765 percent last year, reaching an all-time high of over $589 per share in October 2020. However, in a post-pandemic world, Zoom's expansion will inevitably slow. As a result, is it a wise decision to purchase a few shares at the current price?

Zoom

In this second article on possible oversold stocks post the lock downs, today we shall focus on the stock Zoom Video Communications ticker symbol ZM listed on the Nasdaq stock exchange which suffered a significant sell-off post the pandemic.   

Based on the picture below, we can see that the Zoom stock was trading close to the $559 mark prior to a gradual sell down to the $274.23 mark in the recent months which translated to a 50% approximate drop in its stock price.  

To recap, Zoom is a company that provides a Video Conferencing platform to not only friends, family and students but also businesses. The upward movement in stock price of this company could be partly fueled by the robust growth in revenues during 2019 which grew by 88% and 2020 which grew by a whopping 325%. Many however have sold down the stock recently with the lockdowns coming to an end.  

Having said that, the megatrend emerging post the lockdown, is that millions of people globally have been shunning traditional employment and more have been opting towards working within the ‘Gig Economy’ space. Should this trend continue, we may be able to see growth in revenues for Zoom should this trend persist. 

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Zoom Stocks

Source: Google 

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