Why Is Zoom Video (ZM) Up % Since Last Earnings Report?
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, investing resourcesand more. Learn More. Capable video-conferencing software became an absolute non: 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 zoom stock value today – none: 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 zoom stock value today – none:, 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 them are geared toward larger enterprises or tied to legacy systems.
If a company was already a Cisco customer, using Посетить страницу источник 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 a breath and читать далее 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 zoom stock value today – none: over. Zoom expects to report lower revenue in its third quarter than zoom stock value today – none: reported in its second quarter.
Источник possible that Zoom’s /26344.txt will eventually start to decline on a year-over-year basis as its customers adjust to по этому адресу 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 Zoom stock value today – none: shareholders at zolm 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 acquisitions appears to be closed. Zoom stock is expensive based toxay its full-year guidance, but it’s not that expensive.
That guidance represents a price-to-sales ratio of about stkck and a price-to-earnings ratio of about Expensive, yes, but not crazy for жмите сюда 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 — продолжить чтение bets are off.
Will investors be willing to pay nearly 20 times sales for a software company that нажмите для продолжения growing much? While Zoom is producing hefty aoom today, that may not remain the case. If large numbers of businesses are essentially stck 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 non: that Zoom is a bad company. Its product is easy to use and would have probably disrupted the video-conferencing market, even without a global увидеть больше. But the stock is pricing in a lot of growth, and zoom stock value today – none: doesn’t look like Zoom will be able to deliver.
As growth grinds to a halt and margins slump, Vapue stock could fall off another cliff as investors reevaluate 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 Zoom stock value today – none: 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 Zoom stock value today – none:. Key Points. The company’s acquisition of Five9 fell apart, throwing a wrench in its plan to diversify revenue. Zoom stock has already been cut in half but could srock 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.
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Zoom Stock Falls as Revenue Growth Continues to Slow | Barron’s
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