Following up on the article posted back on 4th August (Everyone's Zooming These Days) I flagged Zoom as a potential buy at $268 with an initial target of $399 we have now seen this stock progress to the upside and slightly exceed that initial target. At the time we were looking for a bullish momentum run into the quarterly earnings announcement which was expected to be positive. Zoom reported earnings after the closing bell yesterday (Monday 31st August 2020). The company reported second quarter income of $185.7 million, 63 cents per share on sales of $663.5 million. This is against analysts expectations of 45 cents per share and sales of $500.3 million. Forward guidance was also positive all of which saw the shares extend recent gains after hours and the stock is now trading at $412.25 pre market.
We trimmed our position in Zoom (ZM) by 50% before the close yesterday at $ 320.00 booking a gain of $52.00 per share or 19.4% and elected to hold the remaining 50% position. Immediate support is now $351 - $372 with the next upside target area at $445 then $503.