Zoom stock price on the back foot ahead of Q4 earnings

Zoom had a spectacular 2020, but as the focus moves towards reopening the economy can it find new ways to prosper?

When is Zoom’s earnings date?

Zoom reports earnings on 1 March, covering its financial fourth quarter (Q4).

Zoom earnings – what does Wall Street expect?

Zoom is expected to report earnings of 78.9 cents per share, up 425% from last year, with revenue 330% higher at $811 million. At a price-earnings (PE) ratio of 256 times trailing earnings, and 124 times forward earnings, the stock has little room for disappointment.

Rarely if ever has a company entered the international lexicon so quickly, but the lockdowns of 2020 meant that Zoom calls became a feature for a significant portion of the globe. Suddenly a company few had heard of became a global icon, surpassing Skype which had been around for many years. Having rallied 300% since 1 March 2020 investors may wonder how the company can keep the ebullient atmosphere going.

As the world returns to normal, many meetings and chats will go back to being in person rather than online, reducing demand. But it must be said that with many office workers planning to work remotely much more than before the pandemic, there will at least be continued scope for growth. How well the stock does around earnings, and beyond, will depend on Zoom’s outlook. Unlike most companies, it had a very good 2020, but keeping up that mood into 2021 will be tough.

How to trade Zoom earnings

Zoom’s average move on results day is 15.2%, as befits a high-valuation, high-growth firm such as this. Current pricing points towards a move of 12.2%. Meanwhile, of 29 analysts covering the stock, 11 have ‘buys’, with 15 ‘holds’ and just three ‘sells’.

Zoom stock price – technical analysis

Like many tech stocks, Zoom has actually had a tough few months in terms of its stock price, which has declined since its peak last year. It started the year on a weak note and managed to rally by mid-February, but it formed a lower high at $450.00 before falling back to the 200-day simple moving average (SMA) for the second time in two months.

A break above trendline resistance and above the February high would mark a more bullish development, and potentially put a move back towards all-time highs into view. Alternately, the loss of the 200-day would be a bearish development, with a drop through the $317.50 swing low marking a regime shift towards at least a medium-term retracement.

After the Zoom higher, what next?

Remote working will stay in demand for the time being, but Zoom’s valuation means it has to keep up the compelling narrative. As the market regime shifts from tech stocks towards those focused on reopening the economy Zoom will need to highlight its adaptability in the a new world that looks a lot like pre-2020.

IGA, may distribute information/research produced by its respective foreign affiliates within the IG Group of companies pursuant to an arrangement under Regulation 32C of the Financial Advisers Regulations. Where the research is distributed in Singapore to a person who is not an Accredited Investor, Expert Investor or an Institutional Investor, IGA accepts legal responsibility for the contents of the report to such persons only to the extent required by law. Singapore recipients should contact IGA at 6390 5118 for matters arising from, or in connection with the information distributed.

The information/research herein is prepared by IG Asia Pte Ltd (IGA) and its foreign affiliated companies (collectively known as the IG Group) and is intended for general circulation only. It does not take into account the specific investment objectives, financial situation, or particular needs of any particular person. You should take into account your specific investment objectives, financial situation, and particular needs before making a commitment to trade, including seeking advice from an independent financial adviser regarding the suitability of the investment, under a separate engagement, as you deem fit.

Please see important Research Disclaimer.

Seize a share opportunity today

Go long or short on thousands of international stocks.

  • Increase your market exposure with leverage
  • Get spreads from just 0.1% on major global shares
  • Trade CFDs straight into order books with direct market access

Live prices on most popular markets

  • Forex
  • Shares
  • Indices

Prices above are subject to our website terms and agreements. Prices are indicative only. All shares prices are delayed by at least 15 mins.


Prices above are subject to our website terms and agreements. Prices are indicative only. All shares prices are delayed by at least 20 mins.

The Momentum Report

Get the week’s momentum report sent directly to your inbox every Monday for FREE. The Week Ahead gives you a full calendar of upcoming key events to monitor in the coming week, as well as commentary and insight from our expert analysts on the major indices to watch.

For more info on how we might use your data, see our privacy notice and access policy and privacy webpage.

You might be interested in…

Find out what charges your trades could incur with our transparent fee structure.

Discover why so many clients choose us, and what makes us a world-leading provider of CFDs.

Stay on top of upcoming market-moving events with our customisable economic calendar.