A falling pandemic famous person is turning into a bellwether for markets.
Zoom Video Communications
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.
Here’s his chart, and full blog post.
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.