Why is the zoom stock down – why is the zoom stock down:

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Beta is a measure of a share’s volatility in relation to the market. Jing Jun Ma. Follow Quartz. How to buy shares in Zoom Video Communications. See Closing Diaries table for 4 p. Q1
 
 

Why is the zoom stock down – why is the zoom stock down:. Zoom is worth less than it was before the pandemic

 
View the latest Zoom Video Communications Inc. (ZM) stock price, news, historical charts, analyst ratings and financial information from WSJ. Stock Price Forecast. The 25 analysts offering month price forecasts for Zoom Video Communications Inc have a median target of , with a high estimate. Just over two years later, travel restrictions are easing, the tech market is sagging amid rising interest rates, and Zoom’s stock price has.

 

Why is the zoom stock down – why is the zoom stock down:

 

The steady decline over the past year and a half isn’t reversing on the back of a solid fourth quarter of fiscal the three months ended Jan.

The future is of far greater importance than the past, though, and that’s been the rub for Zoom for quite some time. Revenue growth keeps slowing down, and it looks like that trend could continue in fiscal the 12 months that will end Jan. At this point, Zoom is no longer the richly valued stock it was at its IPO a few years ago. Shares trade for about 21 times trailingmonth free cash flow to enterprise value , and about 34 times expected fiscal adjusted EPS.

Zoom is still growing, albeit at a much more modest pace as effects of the pandemic gradually wear off.

But sooner or later this stock will find a bottom if the business itself remains strong as it has been in these uncertain times. Cost basis and return based on previous market day close. Calculated by average return of all stock recommendations since inception of the Stock Advisor service in February of Discounted offers are only available to new members. Calculated by Time-Weighted Return since Volatility profiles based on trailing-three-year calculations of the standard deviation of service investment returns.

Invest better with The Motley Fool. Get stock recommendations, portfolio guidance, and more from The Motley Fool’s premium services. Premium Services. Stock Advisor. View Our Services. But here’s the thing. The stock today, I think it closed at a week low, if it didn’t close at it, it hit the week low at some point today, that’s for sure. We have a two-part question and Trevor actually suggested this question to us earlier today.

First, Jeremy, I’m going to ask you to kick us off here, how do you react when a stock in your portfolio or maybe one you’ve been watching really closely falls that much in a single day? Is it a buying opportunity or do you wait for the dust to clear? Jeremy Bowman: I think nobody likes to see a stock like Zoom, which I do own fall.

Where was it down 17 percent today. But I think it really depends on the reason. 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 it’s even something like, we’re reinvesting in the business, so profits are going to be a little short this next couple of quarters.

I remember Target had a movement like that earlier this year. I think sometimes it can be a good reason to double down to invest in the stock if you spot a short-term reason, but other times, it feels more structural like what we saw with Peloton a few weeks ago.

That revealed a pretty big crack in the business that I think a lot of us didn’t anticipate. I think it’s hard to have general rule for that. You have to take it on a case-by-case basis. Jason Hall: I think that’s a key thing right there. Definitely a lot of it depends. Taylor, what about you?

Taylor Carmichael: That’s a good question. What I love actually is when I know why the stock’s going down and the market is wrong, and I know the market is wrong. That just makes me exuberant. That makes me happy. A lot of times, you don’t know why.

Sometimes, there’s massive moves in stocks and sometimes the whole market is going down. When you have that the whole market is going down, I just duck my head and try not to look. But when COVID was hitting a year ago, early , you knew exactly why the market was going down. There was no question about it and I was a strong bull in that mess.

I just knew we were going to come back and so it was ugly time for the stocks you’re holding, but it’s always exciting when you’re trying to buy things to get a cheaper price. Zoom’s a special case. I think these are both those times that were buying opportunities. If you missed Zoom a year-ago in early , you didn’t buy it, you didn’t jump in. Now, this might be a good time as people are getting out because Zoom’s a powerful long-term story.

But I think people like working from home. I think Zoom calls on The Motley Fool are going to continue and we’re going to keep doing this and it’s really neat ability to do your job from home or from wherever. We could travel. Airbnb on their conference call, talked about combining them with Zoom and people just traveling the world and still working. You take your Zoom with you.

You take your laptop with you, and you can work from anywhere, and how powerful that is and you couldn’t do that five years ago. In general, I think as Jeremy said, it all depends. It depends on why the stock is going down. If you know why. There could definitely be when there’s these really big moves, it can definitely be a buying opportunity, but it’s always hard to predict short-term stuff. Jason Hall: Yeah, that’s a big key right there. Connor, I would love to hear your thoughts on this too.

Connor Allen: Yeah. For me, when a stock falls a lot, as an analyst, I put more work than most people would do into each company that I own. I know my thesis of why I own it. I know a lot about the company and it’s almost like you have a relationship with the company. You’re like, I love this company, this is the future and this is why I’m investing in it. It’s a little bit easier for me to see a 20 percent drop in a stock that I really like, and I’m just like, I’m not going to touch it, is my thesis still intact?

If so, I’m still owning this company. But it hurts me when my thesis actually is broken from something that causes a 20 percent drop. For example, Zillow , that happened this quarter when they came out and said that they were stopping their iBuying process, I sold the company because that was proof that the optionality that I thought they had wasn’t going to work out.

I thought that was going to be a cash cow for the business. When that happened and the stock sunk 20 percent, that hurt. Jason Hall: It fell for a clear reason and a legitimate reason.