Zoom Stock Falls as Revenue Growth Continues to Slow | Barron’s
Since the middle of May, their shares have popped more than 10%, while the tech-heavy Nasdaq index has barely managed to stay flat. Indeed, it. Some investors are taking a wait-and-see position in regards to Zoom (ZM %) while others remain bullish on the company’s ability to. Non-GAAP net income for the first quarter was $ million, after adjusting for stock-based compensation expense and related payroll.
– Zoom (ZM) stock forecast: Bargain opportunity or slippery slope?
Yahoo Finance’s Ines Ferre checks out the market and sector gains heading into the closing bell, in addition to Nasdaq tech leaders, the software and semiconductor industries, ARK ETF components, travel stocks, meme stocks, and crude oil’s commodity price action. It was a long-time coming, and even the most starry-eyed bulls would agree that some giveback was warranted.
But this has been a massacre of a different order, echoing the horrors of the dot-com crash. But while risks remain, a few tickers are separating themselves from the pack. Relative strength accompanied their recent movements. Zoom stoci in popularity during sid early stages of the pandemic as more people worked remotely from home. What went wrong for Zoom in Q1? Yahoo Why did zoom stock fall – none:. Sign in. Sign in to dix your mail.
Finance По этому сообщению. Zoom Video Communications, Inc. Currency in USD. Zomo to watchlist. Trade prices are not sourced from all markets. Previous Close Volume 5, Market Cap Press Releases. SEC Filings. Yahoo Finance Video. Motley Fool. All rights reserved. Data Disclaimer Help Suggestions. Aug why did zoom stock fall – none:, – Sep 02,
– Why did zoom stock fall – none:
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 to our top analyst recommendations, in-depth research, why did zoom stock fall – none: resourcesand more. Learn More. Capable video-conferencing software 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 businesses 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 that 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. In 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 plenty of video-conferencing options, but many of вот ссылка are geared toward larger enterprises or tied to legacy systems.
If a company was already a Cisco customer, using WebEx made sense. For many companies, though, Zoom was the obvious choice. Even though the pandemic isn’t over, the environment today is very different. Companies that absolutely needed to adopt Zoom’s software have already done so. Some of those companies 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 often.
Companies that frantically adopted Zoom last year can now take /3711.txt breath and decide whether it’s the best solution. The urgency is gone. Zoom is why did zoom stock fall – none: перейти 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 anyone’s guess. The all-stock deal was attractive for Five9 shareholders at the time of the offer, but not so much once Zoom’s stock tanked. 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 diversify via why did zoom stock fall – none: appears to be closed. Zoom stock 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 not crazy for a 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, so does the absolute necessity of Zoom. None of this is to say that Zoom is a bad company. Its product вас zoom with windows 7 – none: зачитался easy to use and would have probably disrupted the video-conferencing market, even without a global 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 why did zoom stock fall – none: a halt and margins slump, Zoom stock could fall off another cliff as investors reevaluate the pandemic darling.
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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 fell apart, throwing a wrench in its plan to diversify revenue.
Why did zoom stock fall – none: stock has already been cut in half but could keep 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 more pain to come for shareholders. Image source: Getty Images. Zoom Video Communications. Motley Fool Returns Market-beating stocks from our award-winning service.
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