Zoom Stock Falls as Revenue Growth Continues to Slow | Barron’s – Related Stocks
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Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resourcesand more. Learn More. Perhaps no company is more emblematic of the pandemic’s impact on the stock market than Zoom Video Communications ZM After going public in April ofZoom ended that year up only 9.
However, told a different story. Amidst all this stock volatility, Zoom has i cant get into zoom meeting produced strong business results, and the recent sell-off has made shares much more affordable. With a recent earnings report providing an update on the business, let’s take a look to see if Zoom stock is a buy now. Zoom’s recent earnings release was for Q3 of the fiscal yearending April 30, As Zoom laps the quarters where the pandemic had its greatest impact on revenue, growth numbers will appear lower than what investors may be used to.
This deceleration in year-over-year revenue growth was to be expected. What’s going to be important to watch moving forward are the customer metrics that Zoom reports. Zoom is clearly providing products that customers see value in, and they’re responding by spending more each year. Zoom is also a cash generation machine. This cash balance allows Zoom to make investments in the products that attract new customers and drive the company’s impressive net dollar expansion rate.
While Zoom’s Q3 results are impressive, investors should be aware that some of these metrics are slowing from where they were over the past few quarters. As mentioned above, all of these metrics were bound to slow after Is zoom stock a buy – none: pulled forward so much growth over the past few years. It remains to be seen what growth looks like in the coming quarters and years as the business normalizes.
However, even if the results from is zoom stock a buy – none: quarter continue to hold steady into the future, that level of business performance is zoom stock a buy – none: still be impressive.
When Zoom was growing revenue in the triple digits during andis zoom stock a buy – none: market had the stock priced as if that growth would never slow. While that was exciting if you were a shareholder, it made buying shares at that time a dicey proposition.
On the flip side, the stock is now priced more reasonably, if not undervalued, for what’s likely to be Zoom’s business performance going forward. While that wouldn’t be considered cheap, it is the lowest price-to-earnings multiple that Zoom has had since its IPO.
For investors who believe Zoom’s strong results can continue is zoom stock a buy – none: years to comenow might be the time to pick up some shares at a discount.
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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 читать 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. Recent earnings show a business that continues to put up strong results despite the stock’s performance.
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Is zoom stock a buy – none:.4 Reason to Buy Zoom Video Communications, 1 Reason to Sell
Since Zoom reported its Q1 earnings, the stock has gained momentum, rallying from a low of $ in May to a $ currently, an impressive 40%. The bears will claim that Zoom will lose its pricing power as Microsoft, Cisco, Google, and others offer more free services and competitive.
Is zoom stock a buy – none:
2 days ago · Since Zoom reported its Q1 earnings, the stock has gained momentum, rallying from a low of $ in May to a $ currently, an impressive 40% move higher. If anything, the recent financials are. Jun 01, · Perhaps no company is more emblematic of the pandemic’s impact on the stock market than Zoom Video Communications (ZM %). After going public in Read more on Zoom Video Communications; Capital Markets; . Jun 01, · Zoom Video Communications (NASDAQ: ZM) posted its first-quarter earnings report on May The online video conferencing company’s revenue rose 12% year-over-year to $ billion, which matched.