why zoom stock is falling

by Prof. Amir West PhD Published 3 years ago Updated 2 years ago

Key Points

Zoom is starting to see growth slow as the urgency of the pandemic fades.
The company's acquisition of Five9 fell apart, throwing a wrench in its plan to diversify revenue.
Zoom stock has already been cut in half but could keep falling as growth halts and profits sink.

The stock is down nearly 80% since its October 2020 peak, due to a combination of slowing growth and reduced valuation multiples for technology stocks.Mar 2, 2022

Full Answer

How much further could zoom stock fall?

Dec 02, 2021 · Sometimes, you see a case of where the stock falls and it's very clear that the market's reacting to short-term, there's like, we dialed back our estimates because of the supply chain or sometimes...

Will zoom beat earnings?

Sep 28, 2021 · Why Zoom Shares Are Falling Shares of large technology companies, including Zoom Video Communications Inc (NASDAQ: ZM), are trading lower amid a rise in bond yields, which has weighed on growth...

Will zoom stock recover?

Jan 12, 2022 · 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...

Why is zoom falling?

Aug 31, 2021 · There’s also the fact that Zoom Video is seeing slower growth now that lockdowns are coming to an end. That’s a result of schools and businesses using the company’s services less and less to hold...

Is it good to buy Zoom stock?

The stock is down 80% off its high and is arguably cheaper than it's ever been. Zoom Video Communications (ZM 11.62%) stock is having a rough start to the year in 2022. The stock is down 40% as the markets fall out of love with growth stocks.Apr 19, 2022

Is Zoom a good long term investment?

Bottom line is good. It's doing great in terms of cash and revenue is at 55 percent year-over-year for the full-year 2022.Mar 14, 2022

What is future of Zoom stock?

Zoom expects its revenue to grow just 10%-11% in fiscal 2023 as that slowdown continues. It also expects its non-GAAP earnings per share to decline 31%-32% as it ramps up its spending.Mar 7, 2022

Will Zoom stock go up 2022?

The company is projecting that revenue growth this year will slow to about 11%, down from 55% in the year ended in January 2022, and below the former Wall Street consensus forecast for 15.5% growth.Mar 2, 2022

Is Zoom a Chinese company?

Zoom is a U.S.-founded company and its founder Eric Yuan is a Chinese immigrant who is now an American citizen. However, the company's development team is “largely” based in China, according to Zoom's regulatory filing from earlier this year.Aug 3, 2020

Is Zoom Buy Sell or Hold?

Zoom Video Communications has received a consensus rating of Hold. The company's average rating score is 2.41, and is based on 13 buy ratings, 15 hold ratings, and 1 sell rating.

Will Zoom stock ever go up?

A growing company like Zoom is often unprofitable, but Zoom has strong financials already. Management is expecting non-GAAP earnings per share (EPS) of $4.85 for the entire 2022 year, a nearly 300% increase over the prior year.Jan 12, 2022

What is Zoom's target price?

Stock Price Target

High	$295.00
Low	$96.00
Average	$159.48
Current Price	$84.97

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When did Zoom bounce off its moving average?

On a weekly chart, Zoom bounced off its 10-week moving average in early August. The 10-week moving average often provides a new entry after a big run-up and stocks take a breather.

When did Zoom IPO?

The Zoom IPO in April 2019 raised $752 million, with shares priced at 36. ZM stock popped 72% on the first day of trading. Zoom stock popped again on June 6, 2019, after the company's earnings and guidance topped expectations. It hit an intraday high of 107.34 on June 20, up 198% from its IPO price.

Is Zoom free?

One key to Zoom's success has been a "freemium" business model. Zoom's basic video-calling package is free. Zoom puts limits on the number of participants in a group call and the length of meetings. Often company management learns about Zoom's software after an employee reports a positive experience.

Is Zoom a cloud phone?

The company's privacy policy notes that consumer data is shared for targeted advertising. Zoom Phone, a cloud-calling product rolled out in 2019, lets customers set up group internet phone calls without video. In addition, Zoom Phone competes with products from Cisco, Avaya and RingCentral.

Who is Eric Yuan?

Eric Yuan, Zoom's chief executive and founder, came to the U.S. in 1997. He started out with WebEx Communications and eventually became its vice president of engineering. Cisco acquired WebEx for $3.2 billion in 2007. Yuan then became Cisco's corporate vice president of engineering for collaboration software.

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