Video conferencing darling Zoom presents its results from the year of the pandemic
It’s been almost a year since the beginning of the pandemic. As we mentioned yesterday, the tourism sector has been one of the great victims, while one of the big winners, alongside e-commerce, has been the popular communications and video chat company Zoom Video Communications.
This platform has grown exponentially as many companies transition their employees into a remote work policy in order to avoid contagion, and this platform became popular among the general public as a tool for communication while home.
During yesterday's trading day, the company based in San José in California, announced its results for 2020, highlighting an increase in income of 326%, and improving its prospects for 2021.
Specifically, Zoom reported earnings per share of $1.22 on earnings of $882.49 billion versus expected earnings of $0.7913 per share on earnings of $ 811 billion expected by market consensus, so these results were clearly very positive.
These results were announced after the close of the markets, causing today's pre-opening to anticipate a rise of 8%, adding to the increases of more than 9% of the day yesterday.
Technically speaking, if we look at the daily chart, we can see that since March 1, 2020 the price has experienced a sharp rise from the level close to $ 100 per share where it was at that time until reaching its historical maximum of $588.66 per share on October 19.
From that moment, the price began to correct that has led it to face its 200-session moving average, falling back to the zone of $ 325 per share with a fall of more than $ 260 per share.
Currently, the price is trading close to $410 per share, struggling to recover and maintain its 18 session average. Following these good results, the price could face its medium-term downtrend line in red. Overcoming this level could open the doors to a new bullish rally, although the price should face up to 4 levels of resistance to try to reach its all-time highs.
As long as the price does not break down to its 200-session moving average and the previous low zone represented by the red band, the feeling will continue to be bullish, otherwise, the loss of these levels could cause an even greater correction.
Source: Daily Zoom chart of the Admiral Markets MetaTrader 5 platform from November 4, 2019 to March 2, 2021. Taken on March 2 at 12:00 CET. Note: Past performance is not a reliable indicator of future results, or future performance.
Price evolution of the last 2 years:
- 2020: 395.77%
- 2019: -6.11%
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