Zoom’s astronomical growth rate appears to be slowing. Shares fall

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The company sees 329% in revenue growth in the quarter ahead, which is  a slight slowdown compared with previous quarters. Excluding the after-hours move, Zoom stock has gone up 591% since the start of the year, while the S&P 500 index is up about 12% over the same period. Source: CNBC

Trend Analysis

ZM appears to be in a strong bullish trend. Its 200-day moving average is upwards sloping and the MACD histogram is above 0 and rising. Comparative Relative Strength analysis shows that this issue is lagging the S&P 500. Price Crossed Above 50-Day Moving Average 11/30/2020

Price rose through the 50-Day Moving Average of $474.34 on above average volume.As of 4:00 PM ET Monday, 11/30/2020 Source Charles Schwab Investor Research

By Stephen Nellis and Uday Sampath Kumar-Nov 30 (Reuters) – Zoom Video Communications Inc forecast fourth-quarter revenue above expectations on Monday but its gross margins fell and some growth metrics slowed, sending shares down 5.2% despite booming sales powered by working and learning from home. Source Charles Schwab

Zoom operates data centers, and  also uses cloud services from Amazon, Oracle, and Microsoft. Gross profits we’re down 66. 7% in the third fiscal quarter which was below analysts’ expectations of 72.1% due to the onset of free users, according to IBES data from Refinitiv.


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