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Yes, you can share a video clip on your desktop to other participantsTo Share a Video File with attendees, have the video file ready in your computer.

  1. Start or join a Zoom meeting.
  2. Click Share

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Select "Share computer sound" and "Optimize for full-screen video clip"

Click Share.

It seems to play better on participants side when a video file is playing on a dedicated Video Player like VLC or QuickTime and in full screen.

As compared to playing a video embedded in a powerpoint slides or playing on a website like YouTube.

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  1. Screen Image Added located in your meeting controls.
  2. Switch to the Advanced tab, and then select Video Image Added
  3. Navigate to and select the video you wish to share from your computer, then click Open
    The video will now open within Zoom and be visible to attendees. 
  4. The sharer will also have the video controls to Play, Pause and slider controls.

When using the video share option, Zoom encodes the video from the file directly and shares it, effectively bypassing some of the limiting factors with standard content sharing.

Guide: https://support.zoom.us/hc/en-us/articles/360051673592