CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 82% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.

CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 82% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.

CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 82% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.

Zoom announces a $1.5 billion stock offering

16:44 12 January 2021

Zoom Video (ZM.US) stock fell as much as 6% in premarket after the video conferencing company announced it would seek to raise $1.5 billion through a secondary stock offering. This means that Zoom could issue about 4.3 million shares which would represent around 1.5% of its outstanding shares. Company hasn't set a date yet, saying the stock sale remains "subject to market and other conditions." Zoom expects to give its underwriter a 30-day option to buy as much as an additional $225 million of Class A stock at the public offering price, excluding underwriting discounts and fees. JPMorgan Chase & Co. is the sole book runner for the sale.  Last year the company's stock jumped 400% and its market capitalization reached around $100 billion, as the pandemic increased demand for video-conferencing software. It seems that Zoom is planning to take the most out of the recent stock rally and increase its cash reserves.

Zoom Video (ZM.US) stock managed to erase pre-market losses and is trading slightly higher. Stock is approaching major support at $318.84 which coincides with 200 SMA (red line). If sellers manage to break below, the downward move could be extended to the $278.98 level. However, if buyers manage to halt declines there and break above the downward trendline, then bigger upward correction may be on the cards. Source: xStation5

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