All the excitement pushed ZM near $165 in late March. It then ran out of energy and retraced all the way back down to $110 this week.
The current zone is potentially interesting for two reasons. First, it’s at the 50-day simple moving average (SMA). In fact, this is ZM’s first pullback to that line since it started rallying in early February.
Second, the current price zone is slightly above a longer-term peak from June 2019, shortly after its initial public offering.
ZM is in the news today because of a shareholder class-action lawsuit. However, the issues resulted from its success. One was a decline in the stock price -- after a monster run. Another was that its product has a few issues. These only became obvious after its user base grew dramatically.
The company’s market cap now tops $30 billion, placing it in the same leagues with
ZM’s last quarterly report in March beat estimates and its next set of numbers are due in June.