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.
