This stock is ‘one of the greatest leading indicators’ of market direction. Here’s what it’s saying now.

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A falling pandemic famous person is turning into a bellwether for markets.

Zoom Video Communications
ZM,
-0.46%

has been a “poster child” for shares hitting new lows on the Nasdaq Composite. But it’s additionally “one of the greatest leading indicators of where the market is going overall,” Michael Kramer, the founder of Mott Capital Management, advised shoppers in a weblog on Sunday.

Shares of the videoconferencing workforce surged 395% in 2020 all through the pandemic, however fell 45% in 2021 and are down 57% to this point in 2022. Kramer stated the stock made a brand new low on Friday, and “probably isn’t finished falling either, with the following significant support at $76.45 and then $70.”

Here’s his chart, and full blog post.


Mott Capital

Zoom stocks slipped 0.5% on Monday as broader markets fell
SPX,
+0.69%

on jitters forward of Wednesday’s expected Federal Reserve interest rate hike.

Last month, Zoom reported a difficult second quarter, trimming its annual outlook for income and income because it struggles to get shoppers to pay for its products and services. Some analysts are hoping the corporate can flip issues round with more recent merchandise.

“Market sentiment has turned against smaller tech companies with low or shrinking profitability—and Zoom had exactly that kind of quarter in the second quarter of fiscal 2023,” Argus analyst Joseph Bonner said last month after reducing his ranking on the corporate to carry from purchase on the ones disappointing effects.

Hear from Ray Dalio at the Best New Ideas in Money Festival on Sept. 21 and Sept. 22 in New York. The hedge-fund pioneer has robust perspectives on the place the financial system is headed.

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