September 2, 2020 20:25 NYDT – The DOW JONES Industrial composite index is heading for an overnight correction in after hours trading after riding high on gains for another straight day in a row. The most prominent stock that is having a measurable effect on the DOW is Zoom Communications, Inc. (ZM).
The stock price for Zoom (ZM) has soared 374% over the past year, making it hard for analysts to get an accurate reading on its true valuation. Its revenues soared to above 65% in the past month. Today in trading, the stock price was up over 35% what it was yesterday.
Given that the aggregate P/E ratio for the Telecom Communications industry is in the double digits, and Zoom (ZM)’s P/E ratio is 1821, it will be awhile before investors are truly comfortable investing in its stock price @nyse.