Trading Strategies for Zoom Communication Stock Before And After Q4 Earnings
Portfolio Pulse from Melanie Schaffer
Zoom Video Communications, Inc (NASDAQ:ZM) is trading flat as it approaches its Q4 earnings, with analysts predicting an EPS of $1.13 on revenues of $1.131 billion. The stock has been in a downtrend, and technical analysis suggests bearish sentiment. Exane BNP Paribas analyst Stefan Slowinski downgraded Zoom to Underperform with a $60 price target. For diversification, traders might consider AXS 2X Innovation ETF (NASDAQ:TARK) or AXS Short Innovation Daily ETF (NASDAQ:SARK), which track the performance of ARK Innovation ETF (NYSE:ARKK) and its inverse, respectively.
February 26, 2024 | 7:45 pm
News sentiment analysis
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NEGATIVE IMPACT
Zoom faces a critical earnings report with bearish technical indicators and a recent downgrade, suggesting potential short-term downside.
Given the recent downgrade by Exane BNP Paribas and the bearish technical analysis, Zoom's stock is likely to face short-term pressure, especially if the earnings report does not exceed expectations.
CONFIDENCE 80
IMPORTANCE 90
RELEVANCE 100
POSITIVE IMPACT
SARK, designed to inversely track ARKK's daily performance, may attract traders bearish on Zoom's earnings outcome.
Given SARK's inverse relationship with ARKK, which includes Zoom, negative earnings from Zoom could lead to positive performance for SARK, attracting bearish traders.
CONFIDENCE 70
IMPORTANCE 60
RELEVANCE 70
POSITIVE IMPACT
TARK, aiming to return 200% of ARKK's daily performance, may see increased interest as traders look for diversified ways to bet on Zoom's performance.
As TARK seeks to double the daily performance of ARKK, which holds Zoom, positive or negative earnings results for Zoom could significantly impact TARK's performance.
CONFIDENCE 70
IMPORTANCE 60
RELEVANCE 70