SEC Filing | Zoom Video Communications, Inc. – Investment Thesis

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Zoom stock analysis: $ potential upside targe.Zoom Posted $1 Billion in Revenue. Why the Stock Is Falling. | Barron’s

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Zoom stock rallied more than % between the start of January and October’s all-time high. ยท The price-to-earnings (P/E) ratio has lifted to an. Zoom said that it expects third-quarter adjusted earnings of $ to $ a share, and revenue of about $ billion; analysts expected non-. Eventually the deal fell apart when the stock price plunged, but Zoom’s desire to get into customer service one way or the other didn’t.


Zoom stock analysis – none: –


Now the pendulum on the stock has swung in the opposite direction. Is the stock doomed? 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 family, students Zoomed for school, and businesses Zoomed with clients.

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 as , making Zoom one of the most expensive stocks on the market at the time. 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 technical analysis shows that the stock may start to correct back towards a key long-term Fibonacci support level.

Historical data shows that stocks often correct back to the 50 percent Fibonacci retracement level, following powerful technical breakouts. The week ahead update on major market events in your inbox every week. Indices Forex Commodities Cryptocurrencies Shares 30m 1h 4h 1d 1w.

Analysis Insights Explainers Data journalism. Market updates. Webinars Economic calendar Capital. Professional clients Institutional. The basics of trading. Glossary Courses. Popular markets guides. Shares trading guide Commodities trading guide Forex trading guide Cryptocurrency trading guide Indices trading guide ETFs trading guide. Trading guides. The reason why our vision is to deliver a better video conference experience, even than a face-to-face, in-person meeting, right?

Again, we already started it before, right? But we are not going to offer a hardware platform. We are going to partner with other hardware vendors like Facebook, Microsoft, and many others.

And we offer the software layer. Because that fits very well to our vision. We are going to double down on that. Because, again, it fits very well to our company vision. And metaverse will play a big role for our future innovation. Of course, the future of the metaverse is still unknown.

How big it gets is still unpredictable. But given Zoom’s wide optionality, I can see Zoom being a part of the metaverse in the business world. This should be an interesting growth driver for the company. Today, it only trades at a multiple of We can blame slowing growth for the multiple compression. As a reminder, Zoom is highly profitable with operating and free cash flow margins of Cash richness and stock price depression may also likely call for management to announce a buyback program.

Zoom enjoyed supercharged growth due to the pandemic, and the quick deceleration of growth due to tough comps and reopening of the economy brought bearish sentiment to the stock price. As such, I am in no rush in buying Zoom just yet. However, if the stock continues to make its way to the low-to-mid s, I may initiate a position in Zoom as the company has a strong brand, switching costs, and network effect moats.

The company is also the leader in the communication as a service industry. Furthermore, Zoom is highly profitable with a pristine balance sheet, characteristics that are favorable to capitalize on growth opportunities in Zoom Phone, Zoom Video Engagement Center, and the metaverse. I wrote this article myself, and it expresses my own opinions. AAPL GOOG TSLA What You Need to Know The week ahead update on major market events in your inbox every week.

Rate this article. You can still benefit if the market moves in your favour, or make a loss if it moves against you. However, with traditional trading you enter a contract to exchange the legal ownership of the individual shares or the commodities for money, and you own this until you sell it again.

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But with traditional trading, you buy the assets for the full amount. CFDs attract overnight costs to hold the trades unless you use leverage , which makes them more suited to short-term trading opportunities. Stocks and commodities are more normally bought and held for longer.

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