Ritholtz Wealth Management CEO Josh Brown said on Tuesday he doesn’t see a catalyst that could fuel another big rally in Zoom Video Communications Inc (NASDAQ: ZM) anytime soon and sold his entire stake in the software company.
Josh Brown’s remarks on CNBC’s “Halftime Reportâ€
Brown had bought shares of the San Jose-based firm before the start of the pandemic. As Zoom became an essential tool during the work-from-home situation, the stock gained close to 400% amidst the COVID-19 crisis. On CNBC’s “Halftime Reportâ€, he said:
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“At $114 billion on trailing revenue of $3.2 billion, I still think Zoom is okay. It seems to have bottomed in May, forming a nice uptrend after the last earnings report. I don’t have an issue with the company or the stock; I just want to be liquid for other, more exciting opportunities.â€
The American author and columnist, however, refrained from divulging any further information regarding which stocks is he going to be interested in next. Also on Tuesday, Zoom signed a definitive agreement to acquire Kites GmbH that develops real-time Machine Translation solutions. The terms of the agreement are yet to be disclosed.
Zoom expects up to $3.99 billion of revenue this year
The news comes almost a month after Zoom reported its financial results for the fiscal first quarter that topped Wall Street estimates. For the full financial year, Zoom now forecasts its per-share earnings to fall in the range of $4.56 to $4.61. It expects up to $3.99 billion of revenue this year.
At the time of writing, Zoom is about 30% down in the stock market compared to its year-to-date high of $568 per share in October 2020.
During the same interview with CNBC, Hightower Advisors’ Chief Investment Strategist, Stephanie Link, also explained why she is selling Marriot International stock at a time when investors are particularly interested in buying hotel shares as part of the reopening trade.
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