• Subscribe
  • Log In
  • Home
  • Daily Diary
  • Asset Class
    • U.S. Equity
    • Fixed Income
    • Global Equity
    • Commodities
    • Currencies
  • Sector
    • Basic Materials
    • Consumer Discretionary
    • Consumer Staples
    • Energy
    • Financial Services
    • Healthcare
    • Industrials
    • Real Estate
    • Technology
    • Telecom Services
    • Transportation
    • Utilities
  • Latest
    • Articles
    • Video
    • Columnist Conversations
    • Best Ideas
    • Stock of the Day
  • Street Notes
  • Authors
    • Bruce Kamich
    • Doug Kass
    • Jim "Rev Shark" DePorre
    • Helene Meisler
    • Jonathan Heller
    • - See All -
  • Options
  • RMPIA
  • Switch Product
    • Action Alerts PLUS
    • Quant Ratings
    • Real Money
    • Real Money Pro
    • Retirement
    • Stocks Under $10
    • TheStreet
    • Top Stocks
    • TheStreet Smarts
  1. Home
  2. / Investing
  3. / Stocks

The End of Ownership Could Power Zuora Higher

Here's how to play shares of this company ushering in the subscription economy.
By BRUCE KAMICH
Jun 15, 2020 | 02:46 PM EDT
Stocks quotes in this article: ZUO

In his first "Executive Decision" segment of Mad Money Friday evening, Jim Cramer spoke with Tien Tzuo, founder and CEO of Zuora Inc. (ZUO) , the company ushering in the subscription economy.

Tzuo said the end of ownership is coming and more and more companies are discovering the benefits of using subscriptions to expand their offerings and engage with their customers. Everyone knows Fender guitars, for example, but you might not know the Fender Play service, which will teach you to play guitar for a low monthly fee. Fender has grown their subscription base 10 times during the pandemic as people dusted off their guitars and sharpened their skills.

Tzuo said that many industries are seeing the physical sides of their business shrink, while online components, often powered by subscriptions, expand and flourish.

We looked at ZUO on June 10 and wrote that, " Even though the Point and Figure chart shows a $20 price target, we can see a lot of chart resistance in the $14-$17 area. New longs need to risk a close below $11, but I am not recommending a trade because of all the overhead resistance." 

Let's check and see if the newest charts are flourishing yet.

In the updated daily bar chart of ZUO, below, we can see that prices could close above the bottoming 200-day moving average line Monday. The 50-day moving average line still has a strong positive slope.

The daily On-Balance-Volume (OBV) line has moved up to a new high to confirm the price gains. The Moving Average Convergence Divergence (MACD) oscillator could be crossing to the upside again for a fresh outright go long signal. 

In the weekly bar chart of ZUO, below, we don't have Monday's price action included let alone this coming Friday. If the chart was updated now we would be closing above the 40-week moving average line.

The OBV line would probably also make a new high with the MACD oscillator continuing to improve. 

 

In this daily Point and Figure chart of ZUO, below, we can see an upside price target of $16.00. A trade at $17 would be a breakout and open the way for potential gains to the $20-$21 area.

Bottom-line strategy: The charts of ZUO have improved in the past few days so a long recommendation looks better now. Probe the long side here risking a close below $11.90. Targets are $16 and then $20-$21.

Get an email alert each time I write an article for Real Money. Click the "+Follow" next to my byline to this article.

Employees of TheStreet are prohibited from trading individual securities.

TAGS: Investing | Stocks | Technical Analysis | Consumer Services | Music | Mad Money | Executive Interview

More from Stocks

To Improve Your Trading and Investing, Spend More Time on Exit Points

James "Rev Shark" DePorre
Aug 13, 2022 10:00 AM EDT

For many investors, the best way to sell is to have a highly mechanical system that removes subjectivity.

Royal Investing: 3 High Yield Dividend Aristocrats

Bob Ciura
Aug 13, 2022 7:00 AM EDT

Here are the three highest yielding Dividend Aristocrats available right now.

Market Whips Up a Melt-up

James "Rev Shark" DePorre
Aug 12, 2022 4:21 PM EDT

This action is primarily caused by poor positioning, rather than a sudden improvement in fundamentals.

How Charged Up Is FuelCell?

Mark Sebastian
Aug 12, 2022 3:26 PM EDT

I see some energy here, at least for a trade.

Delisting of Chinese ADRs Is Part of the New Cold War

Jim Collins
Aug 12, 2022 2:00 PM EDT

The process of dealing with a delisted stock is painful for individual investors and impossible for many institutional investors.

Real Money's message boards are strictly for the open exchange of investment ideas among registered users. Any discussions or subjects off that topic or that do not promote this goal will be removed at the discretion of the site's moderators. Abusive, insensitive or threatening comments will not be tolerated and will be deleted. Thank you for your cooperation. If you have questions, please contact us here.

Email

CANCEL
SUBMIT

Email sent

Thank you, your email to has been sent successfully.

DONE

Oops!

We're sorry. There was a problem trying to send your email to .
Please contact customer support to let us know.

DONE

Please Join or Log In to Email Our Authors.

Email Real Money's Wall Street Pros for further analysis and insight

Already a Subscriber? Login

Columnist Conversation

  • 09:40 PM EDT JAMES "REV SHARK" DEPORRE

    This Weekend on Real Money

    To Improve Your Trading and Investing, Spend More ...
  • 08:44 AM EDT PETER TCHIR

    CPI Beats Expectations, But Maybe Not the 'Whisper'?

    Slightly better-than-expected inflation across the...
  • 01:44 PM EDT STEPHEN GUILFOYLE

    This Holding Lights Up With Strong Earnings

    Check out the latest from TheStreet's Stocks Under...
  • See More

COLUMNIST TWEETS

  • A Twitter List by realmoney
About Privacy Terms of Use

© 1996-2022 TheStreet, Inc., 225 Liberty Street, 27th Floor, New York, NY 10281

Need Help? Contact Customer Service

Except as otherwise indicated, quotes are delayed. Quotes delayed at least 20 minutes for all exchanges. Market Data & Company fundamental data provided by FactSet. Earnings and ratings provided by Zacks. Mutual fund data provided by Valueline. ETF data provided by Lipper. Powered and implemented by FactSet Digital Solutions Group.

TheStreet Ratings updates stock ratings daily. However, if no rating change occurs, the data on this page does not update. The data does update after 90 days if no rating change occurs within that time period.

FactSet calculates the Market Cap for the basic symbol to include common shares only. Year-to-date mutual fund returns are calculated on a monthly basis by Value Line and posted mid-month.

Compare Brokers

Please Join or Log In to manage and receive alerts.

Follow Real Money's Wall Street Pros to receive real-time investing alerts

Already a Subscriber? Login