Movement Alert|Zoom Falls 5.38% in Regular Trading, Profit-Taking After Earnings-Driven Rally as UBS Maintains Neutral Rating

Market Focus05-26 21:59

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.)

Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.

Comments

We need your insight to fill this gap
Leave a comment