Why is zoom stock going down.Buy Beaten-Down Zoom Stock Now for Long-Term Tech Growth?
ZM data by YCharts. It only makes sense that as pandemic lockdowns eased and Zoom’s 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 app , is helping drive this spending.
Management reported in Q3 that 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 is 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 Nike , despite 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. Microsoft is much larger than Zoom, making it a formidable competitor with deep pockets. Zoom, of course, competes with Microsoft Teams , which is a crucial cog in Microsoft’s grip on the enterprise market.
Investors will want to monitor Zoom’s revenue growth and management’s comments on customer account growth to ensure that Zoom competes well. I think that there’s room for more than one winner in such 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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Premium Services. It has been updated. 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. MSFT, Zoom executives also announced Monday that ServiceNow Inc.
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Why is zoom stock going down –
Zoom Phone, which is the company’s new unified communications appis helping drive this spending.
Why is zoom stock going down. Zoom Video Communications, Inc. (ZM)
Current Price. Zoom had two financial press releases last month, and neither was particularly important for the stock’s valuation. FIVN, It was a long-time coming, and even the most starry-eyed bulls would agree that some giveback was warranted. Learn More. Volatility profiles based on trailing-three-year calculations of the standard deviation of service investment returns. Key Points.