Zoom Video Communications Inc (ZM Stock) profit-taking may provide buy opportunity amid second wave
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UNLOCK OFFER- NASDAQ: ZM has fallen by over 5.5% on Tuesday, amid profit-taking.
- Zoom may see increased use amid rising coronavirus cases.
- US fiscal stimulus could also indirectly support the tech company's shares.
After Zoom's stock zoomed higher, the prices fade back down. The move seems to be a natural correction after three consecutive days of significant days – as the fundamentals of Zoom Video Communications Inc (NASDAQ: ZM) remain solid.
Zoom's videoconferencing tool has been in broad use before COVID-19 and has risen to prominence since the pandemic erupted in March. The San-Jose-based tech firm has overcome privacy issues – including the option to do Zoom-bombing – early on. After fixing its problems, it remains the communications tool that "just works."
Moreover, competitors such as Google Meets, Microsoft Teams, Skype, and others have begun imitating Zoom's features. As the old saying goes "imitation is the best form of flattery."
The more recent rise of NASDAQ: ZM is related to the second wave of coronavirus gripping the northern hemisphere. The caseload in Europe is accelerating at a worrying pace, prompting several governments to impose various restrictions. Most importantly for Zoom – authorities are encouraging remote working and learning.
And while Americans are focused on the elections, infections are increasing also there, especially in colder states where people stay indoors.
While small children may find it hard to stay focused on video, the youth, university students, and office workers have gotten used to the tool. Even if they occasionally struggle with "Zoom-fatigue" – it is better than being exposed to COVID-19.
Overall, videoconferencing is set benefit from higher demand – and Zoom is at the forefront.
Another reason to expect a resumption of the rally stems from stimulus talks in Washington. Democrats and Republicans seem to be nearing an accord that would boost the economy and satisfy Wall Street. Any additional cash could lift all boats, including Zoom's.
ZM Stock Price
NASDAQ: ZM's closing price stood on $537.02 on Tuesday, below the 52-week high of $588.84 but above the previous peak of $518.79 recorded last week. Holding above that level is a critical bullish sign.
More 2020 Elections: Seven reasons why this is not 2016, time to focus on the Senate
- NASDAQ: ZM has fallen by over 5.5% on Tuesday, amid profit-taking.
- Zoom may see increased use amid rising coronavirus cases.
- US fiscal stimulus could also indirectly support the tech company's shares.
After Zoom's stock zoomed higher, the prices fade back down. The move seems to be a natural correction after three consecutive days of significant days – as the fundamentals of Zoom Video Communications Inc (NASDAQ: ZM) remain solid.
Zoom's videoconferencing tool has been in broad use before COVID-19 and has risen to prominence since the pandemic erupted in March. The San-Jose-based tech firm has overcome privacy issues – including the option to do Zoom-bombing – early on. After fixing its problems, it remains the communications tool that "just works."
Moreover, competitors such as Google Meets, Microsoft Teams, Skype, and others have begun imitating Zoom's features. As the old saying goes "imitation is the best form of flattery."
The more recent rise of NASDAQ: ZM is related to the second wave of coronavirus gripping the northern hemisphere. The caseload in Europe is accelerating at a worrying pace, prompting several governments to impose various restrictions. Most importantly for Zoom – authorities are encouraging remote working and learning.
And while Americans are focused on the elections, infections are increasing also there, especially in colder states where people stay indoors.
While small children may find it hard to stay focused on video, the youth, university students, and office workers have gotten used to the tool. Even if they occasionally struggle with "Zoom-fatigue" – it is better than being exposed to COVID-19.
Overall, videoconferencing is set benefit from higher demand – and Zoom is at the forefront.
Another reason to expect a resumption of the rally stems from stimulus talks in Washington. Democrats and Republicans seem to be nearing an accord that would boost the economy and satisfy Wall Street. Any additional cash could lift all boats, including Zoom's.
ZM Stock Price
NASDAQ: ZM's closing price stood on $537.02 on Tuesday, below the 52-week high of $588.84 but above the previous peak of $518.79 recorded last week. Holding above that level is a critical bullish sign.
More 2020 Elections: Seven reasons why this is not 2016, time to focus on the Senate
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