So, you know that feeling right before a big test? That's the vibe around Zoom Video Communications, Inc. (ZM) today. The stock is getting hammered, down almost 8% as of Monday afternoon. Everyone's looking ahead to Wednesday, when the company is scheduled to report its quarterly earnings after the market closes.
To be fair, it's not a great day for stocks in general. The Nasdaq is down over 1%, and the S&P 500 is also in the red. But Zoom is falling harder, which suggests investors might be a bit nervous about what they'll hear later this week.
What's Wall Street Expecting?
Let's talk numbers. The consensus on Wall Street is that Zoom will report earnings per share of $1.27 on revenue of $1.23 billion for its fiscal fourth quarter of 2026. If that revenue number hits, it would be up from $1.18 billion a year ago. The earnings part is trickier—that $1.27 estimate is below the $1.41 per share the company reported for the same quarter last year.
Here's the thing: Zoom has a pretty good track record of beating expectations. For eight straight quarters, it has reported earnings that topped what analysts were predicting. Last quarter, for instance, it posted EPS of $1.52 against an estimate of $1.21. So, there's a chance the company could surprise to the upside again, but today's price action suggests the market isn't betting on it.
A Look at the Charts
From a technical perspective, the picture is mixed. The stock is currently trading about 9.4% below its 20-day simple moving average and 2.7% below its 100-day average. That's a sign of some short-term bearish pressure, which lines up with today's big drop.
But if you zoom out (pun intended), it's not all bad. The stock is still holding above its 200-day moving average, by about 1.4%. That suggests there's some longer-term support. Over the past year, the stock is up a modest 2.75%, and it's trading much closer to its 52-week high of $97.58 than its low of $64.41.
What Are the Analysts Saying?
The overall analyst consensus is still positive. The stock carries a Buy rating with an average price target of $91.07, which implies a decent chunk of upside from current levels.
There have been some notable analyst moves recently:
- Citigroup: Upgraded the stock to Buy and raised its price target to $106.00 on January 12.
- Piper Sandler: Maintained a Neutral rating but raised its target to $91.00 on January 5.
- Jefferies: Maintained a Buy rating and raised its target to $105.00 back in November 2025.
So, the professional money watchers seem to think there's value here, even if the market is selling first and asking questions later.
How Does Zoom Stack Up?
Looking at broader metrics, the company's profile is fairly middle-of-the-road compared to the market. Its valuation is considered moderate, its financial health and profitability scores are around average, and its recent price momentum is neutral. In other words, it's not screaming "amazing bargain" or "runaway growth story" based on these scores—it's just... a company.
As of Monday, Zoom shares were down 7.86%, trading at $83.19. All eyes are now on Wednesday's report to see if the company can deliver another earnings beat and calm the nerves that are clearly rattling the market today.
