Zoom cuts 1,300 jobs, market rewards the title

Zoom cuts 1300 jobs market rewards the title

(Finance) – Excellent performance for Zoom Video Communications,which is trading up 5.59%.

Wall Street seems to appreciate Zoom’s decision to cut the workforce by 15%. The decision to lay off was announced by CEO Eric Yuan who said goodbye to 1,300 employees in a letter on the company blog.

We have made the difficult but necessary decision to reduce our team by about 15% and say goodbye to about 1,300 hardworking and talented colleagues” – writes the CEO – explaining that the group has grown a lot due to the pandemic, but that it now has to adapt “to the uncertainty of the global economy”.

The comparison of the title with the NASDAQ 100on a weekly basis, shows the greatest relative strength of Zoom Video Communications, compared to the index, highlighting the concrete attractiveness of the stock by buyers.

The medium-term structure remains positive, while signs of contraction emerge due to the short-term approach forced to deal with the resistance identified at USD 85.58. The functional role of support offered by 76.6 is still excellent. Overall, the general context could justify a continuation of the consolidation phase towards 71.81.