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Zoom, Up 330% This Year, Could Have More Room to Grow

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Key Points

  • Videoconferencing company Zoom Video has already rallied nearly 330% this year and Gordon is betting a strong technical set-up and fundamental tailwinds can propel it higher when it reports earnings on August 31.
  • Facebook said earlier this week that beginning September, Zoom will be one of the apps available on its portal device. Zoom for the week is up 18 percent.
  • Zoom closed at $289.68 a share on Friday.
  • Visit The Financial Today’s homepage for more stories.

One of the hottest stay-at-home stocks could be poised for more upside, Ascent Wealth Partners managing director Todd Gordon said.

Videoconferencing company Zoom Video has already rallied nearly 330% this year and Gordon is betting a strong technical set-up and fundamental tailwinds can propel it higher when it reports earnings on August 31.

“Zoom has held in extremely well, a little bit of consolidation over the last couple of weeks, but we’re pushing higher on the back of news that Facebook in their videoconferencing Portal will actually support Zoom. Facebook is going after sort of the corporate kind of clients in the new work-at-home, stay-at-home environment that really looks like it’s going to be with us longer than we imagined,” Gordon told CNBC on Thursday. 

Facebook said earlier this week that beginning September, Zoom will be one of the apps available on its portal device. Zoom for the week is up 18 percent.

The consolidation breakout should give Zoom more momentum in continuing its rally, Gordon said.

“It’s just an unbelievable uptrend here in Zoom and as I’ve mentioned, we have just recently broken through this bit of consolidation, and we don’t see any reason why we should not be able to continue higher, moving up into the $300s and beyond,” he said. 

Zoom closed at $289.68 a share on Friday.

Disclosure: Ascent Wealth Partners holds Zoom.

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