But over the past few weeks some investors have begun to sell off their tech investments and take their gains from the past few months. This has pushed down the share price of some technology companies, including Zoom, if only temporarily. While Zoom's stock bounced back today, it's down from its high in early September.
How much further could zoom stock fall?
Zoom's current valuation is enticing for potential investors. Looking back at the last two years, there may be no stock more representative ... That's a painful fall from grace for shareholders.
Is Zoom a good stock to buy?
Key Points
- Zoom’s Q3 numbers beat Wall Street’s expectations.
- Its forecast indicates its post-pandemic slowdown will continue.
- The stock is still richly valued relative to its growth.
Is now the time to sell your zoom stock?
Now ... 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 ...
Why does zoom keep going down?
You can also manually install the software from Zoom. Another common problem with Zoom is an audio echo during a meeting. If you hear an audio echo or feedback, there are three possible reasons why. Someone could have both computer and telephone audio active at the same time.
Is Zoom still a good investment?
ZM stock owns an IBD Relative Strength Rating of only 20 out of a best-possible 99. The Relative Strength rating shows how a stock's price performance stacks up against all other stocks over the last 52 weeks. Zoom stock holds an IBD Composite Rating of 46 out of a best possible 99.
Is Zoom stock expected to rise?
Stock Price Forecast The 25 analysts offering 12-month price forecasts for Zoom Video Communications Inc have a median target of 121.00, with a high estimate of 190.00 and a low estimate of 90.00. The median estimate represents a +9.11% increase from the last price of 110.90.
Is ZM a strong buy?
We rate ZM as a hold with a price target for the year ahead at $120.00 representing a 32x multiple on the current consensus full-year EPS.
What is Zoom's target price?
Stock Price Target ZMHigh$190.00Median$121.00Low$90.00Average$125.07Current Price$110.97
Is Zoom undervalued?
Relative to the current share price of US$92.3, the company appears quite undervalued at a 33% discount to where the stock price trades currently.
What is ZM stock prediction 2025?
In 2025, ZM is forecast to generate $554,982,851 in earnings, with the lowest earnings forecast at $554,982,851 and the highest earnings forecast at $554,982,851.
What's next for Zoom?
Live Translation and Transcription: Zoom meetings will become even more inclusive with the addition of real time, automated translation, as well as expansion of its existing live transcription, with support for multiple languages coming later next year.
Is Zoom a profitable company?
Zoom is now projecting revenue of $1.07 billion to $1.075 billion, with non-GAAP profits of 86 to 88 cents a share, well below previous Wall Street estimates. Previous Wall Street consensus had called for revenue of $1.095 billion, with profits of $1.03 a share. Shares were down 1% in after hours trading Monday.
NASDAQ: ZM
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Zoom Video Communications has gone from COVID-19 darling to a zero that investors are selling, perhaps unfairly
Zoom Video Communications ( ZM -1.87% ) was one of the market's favorite stocks during 2020 and the start of the pandemic. "Zooming" became commonplace, and the company saw a staggering acceleration in growth throughout 2020 that pushed the stock price to almost $600 per share.
Zoom's elevated stock price was unsustainable
Both users and investors flocked to Zoom in 2020. 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.
NASDAQ: ZM
Despite this blistering revenue growth, the stock price somehow outran it. The stock's price-to-sales ratio shot as high as 120, making Zoom one of the most expensive stocks on the market at the time.
Zoom Video's fundamentals remain intact
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 2022 (ending Oct. 31, 2021), Zoom reported $1.05 billion in revenue, a 35% increase year over year. Its full-year 2022 revenue guidance of $4 billion would mean 51% growth compared to fiscal 2021.
From nosebleed expensive to bargain-basement
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.
A risk to keep your eye on
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.
When will Zoom move back to growth?
At the same time, it should be noted that one quarter without growth is not the end of the world for Zoom, and the company may move back to the growth trajectory in 2022.
Is Zoom facing headwinds?
Such valuation implies fast growth but Zoom is facing headwinds. The company stated that the return to work was its main near-term problem, but the market will also take a look at the possibility of increasing competition from products like Microsoft Teams.
Does Zoom have headwinds?
Zoom explained that it faced headwinds as workers got back to their offices while students moved back to schools. The company also noted that demand from small customers declined, while demand from large firms remained strong.
Why is Zoom growing?
Why has Zoom experienced explosive growth? The Covid-19 pandemic has fueled Zoom’s growth as more companies use Zoom’s platform for meetings and collaboration, while individuals use Zoom to stay in touch with friends and family. Social distancing rules and closed offices has led to a substantial increase in Zoom’s user base, financial performance and stock price.
What is the IPO price of Zoom?
Think of it this way: Zoom is the poster child of the work from home movement. In April 2019, Zoom announced its IPO priced at $36 per share , which implied a market capitalization of approximately $9.2 billion. This year, Zoom’s stock has risen by 600%.
When is the opening bell of Zoom?
video-conferencing software company Zoom after the opening bell ceremony on April 18, 2019 in New York City. (Photo by Kena Betancur/Getty Images)
Is Forbes opinion their own?
Opinions expressed by Forbes Contributors are their own.
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Here's how these Fools think about a post-earnings dip
Zoom Video Communications ( ZM -1.87% ) tumbled after its recent earnings report, and the stock now trades at a steep discount to its previous heights, despite solid growth and monster profits.
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Topline
Despite surpassing earnings expectations in its second-quarter report, shares of Zoom Video Communications plummeted Tuesday morning as analysts zeroed in on the company's diminishing growth prospects as in-person activity starts picking back up—making the former pandemic stock darling the latest casualty in a market now favoring the post-Covid environment..
Key Facts
Zoom shares fell more than 15% in pre-market trading Tuesday, tanking the company's market capitalization to about $86 billion and wiping out more than $15 billion in market value.
Key Background
With shares down about 48% from their October record high, Zoom is only the latest pandemic stock darling now facing a stark reversal of fortunes. Last week, Peloton stock sank nearly 13% after the company similarly failed to impress investors with its second-quarter earnings report.
Tangent
The broader technology sector has also struggled to keep up with its explosive growth from last year. Though it skyrocketed 43% in 2020, the tech-heavy Nasdaq is up just 20% this year, while the S&P 500 has climbed 22%.
Chief Critic
"A lot of the big pandemic beneficiary companies posted underwhelming second-quarter earnings reports, but Zoom was one of the best," Crisafulli says. "It clearly isn’t blowing away Wall Street like it did during the course of the pandemic, and that may be considered a knee-jerk negative, but its business is actually proving to be resilient."
When will Zoom report earnings?
Zoom is set to report fiscal 2022 first-quarter earnings on June 1, and the significance of this particular report is not lost on investors. With vaccinations ramping up, analysts expect a reduction in business-related use for video platforms to start having an impact this quarter.
Did the CEOs of the biggest investment banks summon their employees back to their offices?
In the last few weeks, the CEOs of two of the world's biggest investment banks summoned their respective workers back to company offices, at least in part.
Is Zoom a good company?
Zoom has a great business, but the triple-digit percentage growth rates of its revenue and its stock price are likely to be a thing of the past. New investors should tread carefully when considering this stock, especially at its current valuation, and keep an eye on whether paying subscribers begin to drop off as workers return to the office.
Is Zoom Video a growth story?
The bulls would note that Zoom Video was a growth story well before the pandemic and its financial performance suggests the virtual-meeting trend was merely accelerated -- not created -- by the response to COVID-19.
Is JPMorgan Chase a Motley Fool company?
JPMorgan Chase is an advertising partner of The Ascent, a Motley Fool company. Anthony Di Pizio has no position in any of the stocks mentioned. The Motley Fool owns shares of and recommends Amazon and Zoom Video Communications.
