Could Zoom be ready for another resurgence?
Shares of the video conferencing company closed out their best week since October on Friday, the same day Bernstein named the stock its highest-conviction pick for 2021.
The firm cited Zoom’s penetration in the mobile phone market as a key element of its bull case.
Zoom shares have rallied a whopping 400% in the last 12 months, though they are roughly 35% below their 52-week highs after a three-month decline.
Zoom’s presence in the mobile and webinar spaces could take its stock to new heights this year, Danielle Shay, director of options at Simpler Trading, said Friday on CNBC’s “Trading Nation.”
“Zoom was already at the forefront of the work-from-home movement even before it happened, and as they’re continuing to innovate and expand and move into the webinar arena, move into telecommunications, I think there’s a lot of potential for growth here, and I think that the general public isn’t really aware of that at this point,” she said.
“I think because [of] the fact that this stock has pulled back so significantly from the highs, it is going to give us a great entry point for some long-term growth,” Shay added.
Another trader wasn’t so sure Zoom would reclaim its all-time highs this year.
The stock closed up less than half of 1% at $384.53 a share on Friday.
“I’ve got to take the opposite side of that trade,” Craig Johnson, senior technical research analyst at Piper Sandler, said in the same “Trading Nation” interview.
Citing a chart, Johnson noted that the stock has “broken the uptrend support line that’s been intact, you’ve got a bearish divergence here happening in momentum, and a break below 337 is going to start a whole leg lower.”
“I don’t think this is going to be a big winner here in 2021,” Johnson said. “There’s a lot of competition out here for video conferencing. Zoom is great, but again, what’s really unique vs. Microsoft Teams products and others out there? I’m going to pan this one and I think you’re going to see a break below 337.”
A fall to $337 would be a roughly 12% decline from Zoom’s current levels.
