Why Zoom doesn't benefit from a vaccine.
Zoom has benefited greatly from stay-at-home ordinances. Considering that the SPX and major indexes have been very bullish today at news of a possibility of a vaccine, Zoom is not reacting with major movements one way or another. This news of a vaccine however is most likely nothing more than hype and excitement, so I'm tempted to switch my short to long if Zoom re-enters the trendline. Set your stop-losses tight, within 5-10 dollars of market price to be safe.
This popular video conferencing app that is likely to follow a similar trajectory as Skype. Currently Zoom is free and ad-free, but if the company gets desperate for revenue they may implement advertising. In TA the weekly graph breaks its trend line, this does not bode well with the upward trajectory the company has been experiencing.
The price per ZM is very expensive thanks to the virus making their application the favorite for teachers and business conferencing. I still think Zoom has potential to continue to be a major player in the conferencing application market so make sure to set stop losses if you go short. If the stock price rebounds into the weekly trend line it may be an indicator to switch to long.
I do not recommend playing this market if you don't want to take high risk. The price can move roughly 20-30 dollars from where it currently is.
Good luck and happy trading.
This popular video conferencing app that is likely to follow a similar trajectory as Skype. Currently Zoom is free and ad-free, but if the company gets desperate for revenue they may implement advertising. In TA the weekly graph breaks its trend line, this does not bode well with the upward trajectory the company has been experiencing.
The price per ZM is very expensive thanks to the virus making their application the favorite for teachers and business conferencing. I still think Zoom has potential to continue to be a major player in the conferencing application market so make sure to set stop losses if you go short. If the stock price rebounds into the weekly trend line it may be an indicator to switch to long.
I do not recommend playing this market if you don't want to take high risk. The price can move roughly 20-30 dollars from where it currently is.
Good luck and happy trading.
Comment:
Stock price is gingerly in the trend line. Growth doesn't appear to be significant but short term gains aren't actualized for bulls entering at 165. I'm tempted to switch my position. See comments for an important thing to note that punches a hole in my "free model" argument.