Zoom Stock Extends Fall Amid Fears Growth Could Be Worse Than Advertised | Barron’s.
Zoom Video Communications Inc. continued its streak of delivering better-than-expected earnings, but the company’s stock plunged amid. Zoom stock formed a cup chart pattern over nearly eight months, hitting a low of on Oct. 23, , down 43% from its all-time high. ZM. Zoom — % of its shares were sold short at the end of October — faces a big challenge to restore the 61% of value lost value since its shares.
Why Zoom Shares Are Falling
Zoom Video Communications Inc. Zoom ZM, Executives dashed any remaining hopes for continuing booming growth, however, in guiding for a big slowdown in sales increases this year and promises to spend bigger for opportunities in the future.
Analysts were expecting Zoom to establish a path with smaller growth. They were still hoping for more, however. One way Zoom executives expect to widen the addressable market is a focus on call centers and providing software for them. The company previously attempted to acquire Five9 Inc.
FIVN, For more: Zoom and Five9 may not be broken up forever. Gold 1, Silver Vix CMC Crypto FTSE 7, Nikkei 27, Read full article. More content below. Henry Khederian. In this article:. Recommended Stories.
Motley Fool. Gold 1, Silver Vix CMC Crypto FTSE 7, Nikkei 27, Read full article. More content below. In this article:. Story continues. Read more. Recommended Stories. Motley Fool. The Independent. Those growth rates eventually slid as the company faced tougher year-ago comparisons, dropping into the double digits in the July quarter.
For the period ended Oct. Analysts said this trend is likely to continue, putting pressure on Zoom to find new revenue streams and growth opportunities. The company “zoomed to scale last year, but post-pandemic growth is a different story,” Deutsche Bank’s Matthew Niknam said in a research note, maintaining a “hold” rating on the company.
Looking across estimates, analysts expect Zoom’s year-over-year revenue growth rates to decelerate to Other analysts note, however, that while not matching its meteoric rise during the pandemic, Zoom is not losing any ground and, in fact, continues to grow. Zoom has been both a beneficiary and a victim of hype ever since it first exploded onto the scene at the dawn of the pandemic in , said Raul Castanon, a senior research analyst covering workforce collaboration and communication platforms at Research.
After Zoom reported earnings after market close Nov.
Will Zoom Stock Keep Falling in ? | The Motley Fool
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Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resourcesand more. Learn More. Zoom Video Привожу ссылку ZM Now the pendulum on the stock has swung in the opposite direction.
Is the stock why zoom stock drop Or will this falling knife again find an upward trajectory? Here is what you need to know. Both users and investors flocked to Zoom in With lockdowns in full force, people “Zoomed” with friends and увидеть больше, students Zoomed for school, and businesses Zoomed with посетить страницу источник. The world definitely took on a digital focus.
Despite this blistering revenue growth, the stock price somehow outran it. The stock’s price-to-sales ratio shot as high asmaking Zoom one of the most expensive stocks on the market at the time. ZM why zoom stock drop by YCharts. It only makes sense that as pandemic увидеть больше eased and Why zoom stock drop temporary surge in growth faded, investors would begin to cool on the stock.
The stock price decline has been steep, possibly pushed lower by a broader market sell-off among growth stocks in But just because Zoom couldn’t maintain its triple-digit growth rate, it doesn’t mean the company isn’t still thriving.
In the third quarter of fiscal ending Oct. Zoom Phone, which is the company’s new unified communications appis helping drive this spending. Why zoom stock drop reported in Q3 why zoom stock drop Zoom Phone saw triple-digit percentage revenue growth year over year. A growing company like Zoom is often unprofitable, but Zoom has strong financials already. This shows that Zoom’s profitability is accelerating as revenue whu now outrunning the company’s costs. The stock market can be irrational and stock traders are prone to overreact to things.
Zoom’s stock was definitely overpriced at its peak, but the momentum has swung so far the other way that the stock is now arguably a bargain. The stock price has now fallen to pre-COVID valuation levels, despite the business’s continued growth. Its price-to-earnings ratio of 34 is less than that of a consumer goods company like Nikedespite growing EPS at a triple-digit percentage rate.
It’s becoming harder to ignore Zoom based on the current valuation and substantial numbers it’s put up. If there is a worry for investors, it’s probably competition with Microsoft. Продолжить is much larger atock Zoom, по ссылке it a formidable competitor with deep pockets.
Zoom, of course, competes with Microsoft Teamswhich is a crucial cog in Microsoft’s grip on the enterprise why zoom stock drop. Investors will want why zoom stock drop monitor Zoom’s revenue growth and management’s comments on customer account growth to stck why zoom stock drop Zoom competes well. Why zoom stock drop think that there’s room for more than one winner in stofk a large market, but if Zoom starts losing so much business that its growth begins declining, investors might reconsider their stance on the stock.
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