ZOOM Stock Analysis 2020 - Fundamentals
- Zoom Video Communications (NASDAQ:ZM)added more users in the first 2 months of this year than in all of 2019, racking up 2.2M new monthly users by the end of February.
- Now it's the world's most popular iPhone and Android app. But Zoom has some (not so hidden) vulnerabilities. And Zoom's privacy fails are getting more heat now.
- Last year: Zoom had a security flaw that let hackers hijack your webcam.
- Last week: Vice reported that Zoom was sending users' data to Facebook (NASDAQ:FB), without really telling them about it, even if they didn't have a Facebook account.
- Now: "Zoombombing" incidents — professional Zoom meetings get crashed by, say, a naked person shouting profanities. They're surging.
- So: NY's Attorney General just sent Zoom a letter saying her office was "concerned" about this seemingly lax security.
- ZOOM doesn't pay dividend payments.
- Zoom should've reacted strongly to privacy concerns, but it didn't show investors a real effort to fix its privacy issues — so its stock is down 8% over the week.
Bottom Line
After reaching our profit target of 162, ZOOM stock price has hit a resistance that combined with the fundamental issues with the company, has created a bearish momentum.
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