- The ZM stock price has declined by more than 85% from its all-time high.
- Zoom Video Communications Inc.’s share is following a strong downtrend.
Zoom Video Communications Inc. delivers video conferencing facility to its users. The company operates in the packaged software industry and has more than 8.4K employees. The company has its headquarters in San Jose and was founded in the year 2011 by Eric Yuan.
The company has a very high PE ratio of 132.21 which indicates that the ZM stock might be overvalued. Also, the price-to-book value of the ratio is 2.65 which is strong for the company. The current ratio of the stock is 3.99 which indicates that the company is capable enough to repay its debt.
The company’s insiders have a holding of 9.17% and 72.55% of the float of shares is held by the institutions. There are a total of 222.543M shares floating in the market. The beta of the ZM stock is slightly higher than 1 indicating that the share price is more volatile than the overall market.
ZM Stock Breaks Below The Consolidation, What’s Coming On its Way?
The ZM stock price has been consistently declining for a long time but that does not mean that the stock has never given good returns to its investors. The share price advanced by more than 800% from its IPO price and hit an all-time high of $588.84.
The ZM stock is consistently declining to lower lows resulting in a downtrend in the larger timeframe. Considering the smaller timeframe the share price was consolidating inside a rising wedge pattern. The stock price recently broke down below the wedge pattern resulting in a downtrend dominance.
The share price of the ZM stock is trading below the 50-day and the 200-day EMA leading the stock prices to the lower levels. The EMAs are trading in a death cross and the price is declining further to lower levels.
The RSI is also showing a downtrend leading the value to lower levels. RSI is currently trading at a level of 36.92 declining below the 14-day SMA line.
Financial Performance For ZM Stock
The reported debt of the company for the year ending 2022 is 96.48M and the free cash flow is $1.19B. The resulting cash and equivalents of the company are $1.10B. The revenue made by the Zoom Video Communications Inc. in the year 2022 is $4.39B. It is followed up by a very small net income as compared to the previous.
Conclusion
The profit margin for the company has highly declined but the company has reliable fundamentals. Despite this, the ZM stock price is following a strong downtrend and declining to lower levels. Indicators like the EMA and the RSI are also giving a sell signal on the daily chart of ZM stock.
Therefore, the ZM share price might continue to decline to further lower levels and may hit the lower support levels.
Technical Levels
- Support levels- $55.00 and $62.00
- Resistance levels- $75.00 and $84.70
Disclaimer
The information provided in this article, including the views and opinions expressed by the author or any individuals mentioned, is intended for informational purposes only. It is important to note that the article does not provide financial or investment advice. Investing or trading in cryptocurrency assets carries inherent risks and can result in financial loss.
