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 Report”
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 Report”, he said:
“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.”
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.
The post Josh Brown sold his entire stake in Zoom Video Communications: here’s why appeared first on Invezz.
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Wajeeh Khan
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