Zoom Video Communications, Inc. (ZM): Why Its Shares Are Down -2.6 Percent Today?

Today’s big question for investors is, “what’s going on with Zoom Video Communications, Inc. (NASDAQ:ZM) stock? Its price is nose-diving -1.9 points, trading at $71.1 levels, and is down -2.6% from its previous close of $73. The shares seem to have an active trading volume day with a reported 1009476 contracts so far this session. ZM shares had a relatively better volume day versus average trading capacity of 2.42 million shares, but with a 0.11 billion float and a -4.09% run over a week, it’s definitely worth keeping an eye on. The one year price forecast for ZM stock indicates that the average analyst price target is $81 per share. This means the stock has a potential increase of 13.92% from where the ZM share price has been trading recently.

Looking at the current readings for Zoom Video Communications, Inc., the two-week RSI stands at 45.32. This figure suggests that ZM stock, for now, is neutral, meaning that the shares are stable in terms of price movement. The stochastic readings, on the other hand, based on the current ZM readings is similarly very revealing as it has a stochastic reading of 45.36% at this stage. This figure means that ZM share price today is being neutral.

Technical chart claims that Zoom Video Communications, Inc. (ZM) would settle between $75.33/share to $77.66/share level. However, if the stock price goes below the $71.52 mark, then the market for Zoom Video Communications, Inc. becomes much weaker. If that happens, the stock price might even plunge as low as $70.04 for its downside target. The stock is currently in the red zone of MACD, with the indicator reading -1.98. Traders are always alerted for the move of a stock above or below the zero line due to the fact that the reading is an indicator of the position of the short-term average relative to the long-term average. If the MACD is above the zero line, then the short-term average relative is above that of the long-term average, thus implying an upward momentum. Vice versa is the case if the MACD is below the zero line.

Analysts at Piper Jaffray, assumed coverage of ZM assigning Neutral rating, according to their opinion released on December 10. Guggenheim, analysts launched coverage of Zoom Video Communications, Inc. (NASDAQ:ZM) stock with a Buy recommendation, according to their flash note issued to investors on November 22. Analysts at Robert W. Baird, made their first call for the equity with a Outperform recommendation, according to a research note that dated back to September 16.

ZM equity has an average rating of 2.42, with the figure leaning towards a bullish end. 19 analysts who tracked the company were contacted by Reuters. Amongst them, 11 rated the stock as a hold while the remaining 8 were split even though not equally. Some analysts rate the stock as a buy or a strong buy while others rated it as a sell. 6 analysts rated Zoom Video Communications, Inc. (NASDAQ:ZM) as a buy or a strong buy while 2 advised that investors should desist from purchasing the stock or sell them if they already own the company’s stock.

Moving on, ZM stock price is currently trading at 246.62X forward 12-month Consensus EPS estimates, and its P/E ratio is 1339.2 while for the average stock in the same group, the multiple is 27. Zoom Video Communications, Inc. current P/B ratio of 26.1 means it is trading at a premium against its industry’s 1.7.