Zoom Video Communications, Inc. (ZM) Stock Price, News, Quote & History – Yahoo Finance – Here’s how these Fools think about a post-earnings dip.

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Founded in by brothers Tom and David Gardner, The Motley Fool helps millions of people attain financial freedom through our website, podcasts, books, newspaper column, radio show, and premium investing services. Become a Motley Взято отсюда member today to get instant access to our top analyst recommendations, in-depth research, investing resourcesand more. Learn More. There wasn’t any major news about Zoom before its Feb.

Last month’s drop was due entirely to negative market sentiment, especially among high-priced market darlings. Zoom had two financial press releases last month, and neither was particularly important for the stock’s valuation. The company announced the resolution of a legal dispute with RingCentralthen it announced a new product update for contact centers. That news страница overall slightly positive.

There was no why is zoom stock falling – why is zoom stock falling: to think that Zoom’s financial fundamentals had changed meaningfully during the month. It became cheaper relative to sales and expected earnings.

These dynamics become even more clear when Zoom’s price chart is compared to peers RingCentral and Atlassian. All three stocks were clearly influenced by the same market sentiment. Zoom’s Feb.

After приведенная ссылка, the stock continued to slump as the Ukrainian conflict weighed on markets. Investors are concerned about slowing growth, which is bad news at a time when investors are детальнее на этой странице away from riskier assets. The company has retained and built upon its COVID bump, but it’s settling into a phase that could never justify its previous valuation. The pricing is much more reasonable now at an 8.

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. Why is zoom stock falling – why is zoom stock falling: Our Services. Our Purpose:. Latest Stock Picks.

Today’s Change. Current Price. Zoom was pulled down by growth stock sell-off. Image source: Getty Images. Zoom Video Communications. Motley Fool Returns Market-beating stocks from our award-winning service. Stock Advisor Returns. Join Stock Advisor. Our Most Popular Articles. Get Started Now. View Premium Services.

 
 

 

Why is zoom stock falling – why is zoom stock falling:. Zoom Stock Falls as Revenue Growth Continues to Slow

 

Founded in by brothers Tom and David Gardner, The Motley Fool helps millions of people attain financial freedom through our website, podcasts, books, newspaper column, radio show, and premium investing services.

Become a Motley Fool member today to get instant access why is zoom stock falling – why is zoom stock falling: our top analyst recommendations, in-depth research, investing resourcesand more. Learn More. Zoom’s growth is expected to slow down can i add another email to my zoom account this year, leading the market to chip away at the stock’s premium valuation.

Shares of Zoom have been slumping since last summer. Sentiment has shifted hard as the urgency of deploying Zoom’s solutions has waned, and the recent rout in growth stocks certainly isn’t helping. Zoom’s last earnings report came in February, and it painted a not-so-pretty picture. This growth will come at a heavy cost. During the beginning of the pandemic, companies were forced to quickly deploy a videoconferencing solution that enabled remote work.

Zoom was the path of least resistance given how easy it is to get started compared to legacy products. Zoom’s solution pretty much sold itself. That is clearly no longer the case. Smaller customers are churning at higher rates as they reassess the need for Zoom, and larger customers now have the luxury of taking their time to weigh all the options.

That means longer sales cycles, higher spending on sales and marketing, and reduced profits. Zoom is attempting how to arrange zoom meeting for free – none: diversify its way out of this mess.

The company launched its own contact center platform in February after its deal to acquire Five9 fell through, and it’s been adding collaboration features like Zoom Whiteboard to its product offerings.

While these initiatives have long-term potential, it will be tough for Zoom to not be viewed as a one-trick pony by the market. It might take a while for the late-pandemic hangover to run its course for Zoom, but the videoconferencing market will almost certainly grow in the long run as remote and hybrid work becomes more accepted as the norm.

The problem for Zoom is that its valuation is still not all that attractive relative to this growth opportunity. That’s not high compared to the nosebleed valuations software stocks have been awarded in recent years, but two things have changed.

First, Zoom is having to ramp up spending just to eke out double-digit growth this year. And second, valuations in general are coming down as inflation and interest rates rise. If the story at Zoom over the next few years is sluggish growth and profits under pressure, further declines could be on their way for the pandemic darling.

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. Our Purpose:. Latest Stock Picks. Key Points. Today’s Change. Current Price. Investors just aren’t buying the growth why is zoom stock falling – why is zoom stock falling: anymore. So what Shares of Zoom have been slumping since last summer. Image source: Getty Images. Zoom Video Communications.

Motley Fool Returns Market-beating stocks from our award-winning service. Stock Advisor Returns. Join Stock Advisor. Our Most Popular Articles. Get Started Now. View Why is zoom stock falling – why is zoom stock falling: Services.