What Happened:
Shares of video conferencing platform Zoom (NASDAQ:ZM) jumped 5.75% in the afternoon session after Rosenblatt Securities analyst initiated coverage on the stock with a Hold rating and a price target of $75. The target price implies a 13% premium compared to the current price. After the initial pop the shares cooled down to $66.04, up 3.22% from previous close.
What is the market telling us:
Zoom Video's shares are quite volatile and over the last year have had 39 moves greater than 5%. In context of that, today's move is indicating the market considers this news meaningful but not something that would fundamentally change its perception of the business.
Zoom Video is down 1.03% since the beginning of the year, and at $66.04 per share it is trading 46.2% below its 52-week high of $122.64 from June 2022. Investors who bought $1,000 worth of Zoom Video's shares at the IPO in April 2019 would now be looking at an investment worth $1,060.
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