Trader Thinks Zoom Shares Will Keep Going Higher Despite Already Rallying 330%

According to Todd Gordon, the managing director at Ascent Wealth Partners, shares of videoconferencing stock Zoom Video has potential for more upside.

The stock has already seen gains of almost 330% this year and Gordon thinks that it could go even higher as the company reports earnings on August 31st.

“Zoom has held in extremely well, a little bit of consolidation over the last couple of weeks, but we’re pushing higher on the back of news that Facebook in their videoconferencing Portal will actually support Zoom.

Facebook is going after sort of the corporate kind of clients in the new work-at-home, stay-at-home environment that really looks like it’s going to be with us longer than we imagined,” Gordon said on CNBC’s “Trading Nation” last week.

According to Gordon, a breakout from consolidation could give the stock more momentum to continue its rally.

“It’s just an unbelievable uptrend here in Zoom and as I’ve mentioned, we have just recently broken through this bit of consolidation, and we don’t see any reason why we should not be able to continue higher, moving up into the $300s and beyond,” he said.

Gordon’s Ascent Wealth Partners has a position in Zoom in its portfolio.

Facebook had announced that Zoom would be one of the apps that will be available on its Portal device starting in September.

Shares of Zoom are already up 18% for the week. The stock has been one of Wall Street’s biggest success stories of 2020. The stock started the year at less than $69 per share and is now currently around $290 a share.

Disclaimer: We have no position in Zoom Video Communications Inc. (NASDAQ: ZM) and have not been compensated for this article.