Get 40% Off
🚨 Volatile Markets? Find Hidden Gems for Serious OutperformanceFind Stocks Now

Are Best Days Behind Zoom And Peleton?

Published 12/28/2020, 01:38 PM
Updated 07/09/2023, 06:31 AM

If there’s one company that epitomizes this lousy year, it’s Zoom Video Communications Inc (NASDAQ:ZM). It is, of course, the best-known video-conferencing software company, and the COVID-19 pandemic fell into its lap like a goose that lays golden eggs.

Well, I’ve been saying for weeks now how I think its best days are behind it, and a serious breakdown is taking place. The last vestige of support gave way this morning. In just two months, the stock has lost nearly 40% of its peak value. I suspect dark days ahead.

Zoom Communications Chart.

The other “poster child” is Peloton (NASDAQ:PTON), which I mentioned was an attractive short candidate based on its sky-high price and the fact it was crammed right up against its broken trendline. I really just don’t see a great future for a single-product company that counts on Americans wanting to spend a big fee every month to sit on their stationary bicycle.

Peleton Chart.

Latest comments

lock downs helped CEOs realize that working -from- home mode with ZOOM using is more reasonable and lower maintenance. Many offices are closed forever and more will be closed in the seeable future, which means more and more paid subscriptions and income grows as a result. I think, it’s great opportunity to buy ZM from this level to 325 ( gap coverage).
Is it Peleton or Peloton?
it is filling a gap. It is one of motley fools best ideas for next year. I will have to side with motley. Its a new world now. digitized
Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.