Zoom Shares Fall, Despite Breaking Revenue Record In Q3

Has Zoom Video Communications (ZM) peaked? It seems that this feeling is beginning to permeate in the market as the shares of the videoconferencing company fell more than 5% in the pre-market opening, despite having exceeded revenue expectations in the third quarter. Restrictions on mobility to fight the coronavirus pandemic, which are still maintained in many countries, continue to give this sector wings, due to the boom in teleworking.

Zoom shares fall, despite breaking revenue record in Q3

In the third quarter, Zoom had a turnover of slightly more than 777 million dollars, 367% more than in the same quarter of 2019 and above what investors expected. However, gross margins fell to 68.2% from 72.3%, mainly due to the increase in free users along with expenses on cloud services.

The videoconferencing company has been one of the great beneficiaries of the COVID-19 pandemic and proof of this is that its shares have appreciated more than 600% in the stock market so far this year. It started the year trading around $68 and is currently worth more than $400.

(Click on image to enlarge)

Source: Admiral Markets MetaTrader 5. Zoom CFD Daily Chart. Data range: from October 15, 2019, to December 1, 2020. Prepared on December 1, 2020, at 11:45 CET. Keep in mind that past returns do not guarantee future returns.

When Zoom made its debut on the stock market in April 2019, it opened at $36 per share, doubling its value at the close of the first session. As we can see in the graph, the videoconferencing company ended that year at around $67. The first confinement measures in Europe due to the coronavirus pandemic triggered the price of its shares, especially during the summer months. In mid-October, when some advances regarding the COVID-19 vaccines began to be known, their shares fell to below $400 and from there they bounced again.

Disclaimer: The given data provides additional information regarding all analysis, estimates, prognosis, forecasts or other similar assessments or information (hereinafter "Analysis") ...

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