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Within the impulse waves (1), (3), and (5) are themselves 5 wave moves that as well make net movement in the direction of the trend. An impulse is a trending move that is composed of 5 subwaves. Zoom has a very classic Elliott Wave impulsive structure off its 2019 post-IPO low. In the case of price to sales, this metric has declined to its pre-pandemic lows.

The takeaway from the two above charts is that while revenue and cash from operations have continued their upward trend at a furious pace, even as it appears the worst of the pandemic may be in hindsight, the valuation metrics have receded tremendously. The stock trades for over 30x sales and over 60x cash flow, but has blazing growth potential and is near the low end of its rather brief historical valuation range.” In her July 19 “Where Fundamentals Meet Technicals” article, Lyn Alden Schwartzer wrote that, “Zoom is one of those weird stocks that's expensive in absolute terms, and yet nearly the cheapest it has ever been in its history as a public company. So while the broader indexes formed a lasting bottom just prior to the 2020 election and have steadily ascended to continual all-time highs, ZM has very much lagged, still down 32% (as of the close on August 4th) from its all-time high. Unlike the S&P 500 or the Nasdaq, which are trading less than 1% below their all-time highs, Zoom Communications has yet to recover from its mid-October 2020 high. I’m willing to buy a small position to see how far it can run from here” - Lyn Alden Schwartzer from her June 27th “Deep Dive: Multi-Stock Analysis” article. “While Zoom’s ( ZM) pandemic-fueled growth spurt is behind them, I think their longer-term growth trend can continue, and they’re expanding into other product lines to become a more entrenched part of the hybrid/global work model.

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