This came as the company reported a $3.5 billion in sales run rate at the time, 4 times the original revenue guidance for the year! Post the IPO shares traded around the $60 mark, and little over a year later shares traded around the $500 mark in the fall of 2020, with the market aggressively extrapolating pandemic trends.

A Spectacular Boom-BustĪfter its IPO in 2019, Zoom has seen a spectacular boom-bust cycle. This margin pressure (resulting from increased stock-based compensation expenses) was so big that realistic earnings likely came in around the break-even line, creating real questions on the fundamental support for the shares here.

Late in the summer, I believed that there was miscommunication in the case of Zoom, as the company was able to maintain and slightly increase revenues, yet this came at the expense of severe margin pressure.

(ZM ) have been trading stagnant around the $70 mark for a couple of months now, apparently having found some support here. Shares of Zoom Video Communications, Inc.

Updating zoom