Why Zoom Stock Tumbled 15% in April | The Motley Fool
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Zoom Video Communications, Inc. (ZM) Stock Price, News, Quote & History – Yahoo Finance.
Zoom Video Communications Inc’s third-quarter revenue growth rate slowed to 35% as demand for its video-conferencing tools eased from the. Zoom shares crashed more than 16% to $ on Tuesday’s session. The steep sell-off pushed shares of Zoom into the red for the past year, down. Zoom stock formed a cup chart pattern over nearly eight months, hitting a low of on Oct. 23, , down 43% from its all-time high. ZM.
– Zoom stock just crashed — here’s the simplest reason why
Nov 09, · In April , Zoom announced its IPO priced at $36 per share, which implied a market capitalization of approximately $ billion. This year, Zoom’s stock has risen by %. Oct 05, · No longer zooming Even though Zoom’s financial results continued to impress through much of , the stock has been steadily declining for the past year. Zoom stock reached an all-time high of. Jan 12, · In the third quarter of fiscal (ending Oct. 31, ), Zoom reported $ billion in revenue, a 35% increase year over year. Its full-year revenue guidance of $4 billion would mean 51%.
Zoom shares fall after results as Wall Street turns cautious on growth – The Economic Times.
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Become a Motley Fool member today to get instant access to our top zoom stock price fall – zoom stock price fall: recommendations, in-depth research, investing resources адрес страницы, and more. Learn More. Capable video-conferencing zoom stock price fall – zoom stock price fall: became an absolute necessity for businesses overnight, and the path of least resistance was Zoom’s easy-to-start and easy-to-use product. Zoom’s revenue soared as здесь scrambled to enable employees to work from home.
Even though Zoom’s financial results continued to impress through much ofthe stock has been steadily declining for the past year. The stock market is forward looking. It’s clear that investors have been worried about what will happen to Zoom once the pandemic is over, and prife worry has contributed to the stock’s decline.
The video-conferencing software market isn’t going away, and the pandemic almost certainly accelerated adoption of the technology. But the end of the pandemic represents a sea change for Zoom. Fwll: the first months of the pandemic, businesses that abruptly found themselves with remote employees had no choice but to pay for video-conferencing software.
It didn’t matter how much it cost; what mattered was getting up and running quickly. There are ffall of video-conferencing options, but many of them are geared toward larger enterprises or tied to legacy systems. If a company was already a Cisco customer, using WebEx made sense.
Peice zoom stock price fall – zoom stock price fall: companies, though, Zoom was the obvious choice. Zoom stock price fall – zoom stock price fall: though the pandemic isn’t over, the environment today is zoom stock price fall – zoom stock price fall: different. Companies that absolutely needed to adopt Zoom’s software have already done so.
Some of those stodk are starting to bring workers back to the office. While remote work will probably be more prevalent in the post-pandemic world than in the past, plenty of workers will no longer be using Zoom as zoom stock price fall – zoom stock price fall:.
Companies that frantically adopted Zoom last year взято отсюда now take a breath and decide whether it’s the best solution. The urgency is gone. Zoom is starting to see smaller customers drop off the platformand enterprise customers are taking more time to make buying decisions. The bonanza is over. Zoom expects to report lower revenue in its third quarter than it reported in its second quarter.
It’s possible that Zoom’s revenue will eventually start to decline on a year-over-year basis as its customers adjust to the post-pandemic world. The company is already seeing some of its pandemic-era growth start to unwind. Where the post-pandemic baseline for Zoom ends up settling is faol guess. The all-stock deal was etock for Five9 shareholders at the time of the offer, but not so much once Zoom’s stock dtock.
It will be difficult for Zoom to make any major acquisitions using its stock as currency after the Five9 deal collapsed. The time for that was probably last year when the stock was soaring and confidence that it would keep soaring was high. The window of opportunity for Zoom to use its inflated stock to zoomm via acquisitions appears to be closed. Zoom stoc, is expensive based on its full-year guidance, but it’s not that expensive. That guidance represents a price-to-sales ratio of about 19 and a price-to-earnings ratio of about Expensive, yes, but zopm crazy for stokc fast-growing company.
If Zoom stops being a fast-growing company — which looks like will probably be the case at least for a while as the pandemic ends — all bets are off. Will investors be willing to pay nearly 20 times sales for a software company that isn’t growing much? While Zoom is producing hefty profits today, that may not remain the case.
If large numbers of businesses are essentially forced to pay for your software, of course you’re going to be extremely profitable. As the pandemic ends, faall: does the absolute necessity of Zoom. None of this is to say that Zoom is a bad company. Its product is easy to use and would have probably disrupted the video-conferencing market, even without a больше на странице pandemic. But the stock is pricing in a lot of growth, and it doesn’t look like Zoom will be able to deliver.
As growth grinds pricce a halt and margins slump, Zoom stock could fall off another cliff as investors reevaluate the pandemic darling. Cost basis fal, return based on previous market day close. Calculated by average return of stovk 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. The company’s acquisition of Five9 dtock apart, throwing a wrench in its plan to diversify are any problems zoom today. Zoom stock has already been cut in half but could читать далее falling as growth halts and profits sink.
Today’s Change. Current Price. The pandemic darling has been tumbling for a year, and there could be rall: pain to come for shareholders. 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. Wondering What’s Next for Inflation and Consumers? Walmart Just Released a Big Hint. Get Started Now. View Premium Services.