On May 26, Zoom declined 5.38% in regular trading, trading at $101.13/share, with trading volume of $120 million. The pullback comes just two trading days after the stock surged over 12% on May 22 following a strong Q1 earnings beat.
The recent rally was driven by Q1 adjusted EPS of $1.55 versus consensus expectations of $1.42, and revenue of $1.239 billion exceeding the $1.223 billion estimate. AI Companion paid users surged 184% year-over-year, and the company raised full-year guidance. However, on May 26, UBS raised its target price to only $105 from $85 while maintaining a neutral rating, implying limited upside from current levels. The analyst consensus mean target stands at $112.72 with an average overweight rating, but profit-taking pressure appears dominant following the sharp post-earnings move.
Within the Application Software sector, performance was mixed. Among individual stocks, AppLovin up 9.1%, IREN up 4.7%, Palantir Technologies down 1.8%, Intuit down 2.95%, D-Wave Quantum down 9.76%.
(The above content is based on publicly available market information, generated by a program or algorithm, and is intended solely as a stock movement alert. It does not constitute investment advice or a basis for trading decisions.)
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