What To Do With Your Zoom Stock Amid News of Strong Q4 But Weak Forecast | GOBankingRates
Even so, the video conferencing provider did post better-than-expected results for the fiscal fourth quarter of , which ended Jan. Still, as the stock continues to plummet through , it begs investors to ask the question: What should you do with your Zoom stock? In mid-Jan. But, he warned, keep a close eye on competition from Microsoft, even though there is likely room for more than one player in the consumer video conferencing game.
Right now, more funds are selling than buying Zoom, with an E rating indicating heavy selling. You could also consider increasing your position to dollar-cost-average your price per share. In late Dec. Every day, get fresh ideas on how to save and make money and achieve your financial goals. Sponsored Links by Zergnet.
About the Author Dawn Allcot. Dawn Allcot is a full-time freelance writer and content marketing specialist who geeks out about finance, e-commerce, technology, and real estate. She is the founder and owner of GeekTravelGuide. She lives on Long Island, New York, with a veritable menagerie that includes 2 cats, a rambunctious kitten, and three lizards of varying sizes and personalities — plus her two kids and husband.
Find her on Twitter, DawnAllcot. Check Out Our Free Newsletters! Subscribe Now. In Case You Missed It. Electric vehicle EV company Rivian — which had a blockbuster IPO in November but has since been struggling with supply chain issues and chip shortages — saw its stock rise on May 31 following a What went wrong for Zoom in Q1?
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Is zoom stock going to go back up
Originally designed for business usage, Zoom ZM launched in and has since seen a dramatic surge in download rates. As more and more COVID-related lockdowns came into effect, Zoom allowed friends, family, and colleagues to stay connected. While many quickly invested in Zoom, others now wonder if Zoom stock will spike once again after it came crashing down to earth following its sugar highs.
Although the public now knows of Zoom following the events of , a million Zoom users were logged within the first few months of its launch. Shares began to taper off. However, Zoom remained profitable until the end of As reported by founder , Eric Yuan, in March , Zoom saw million daily meeting participants — followed by million in April. To put these numbers into perspective, in December , the number of daily meeting participants was 10 million.
However, this rapid growth led to some serious issues — the type of issues that resulted in government bans for businesses, organizations, and school boards. Some of the greatest concerns were based on privacy concerns and the use of unauthorized data. Here is a collection of Zoom stats :. In , Zoom stock surged. While Zoom stock saw a year-to-date gain of percent in mid-October, by the end of December, this value leveled out at percent. That pullback has investors wondering if Zoom stock will go up again?
As COVID vaccinations began to roll out and investors saw the potential for continued hyper-growth to settle and fade, share prices fell by 37 percent between mid-October and the end of December.
In December, Wall Street analysts raised concerns that Zoom shares were overvalued — even though remote work is likely here to stay. As of mid-January , the price of Zoom stock dipped by around 35 percent.
This decline has led to other analysts stating that now is the time to buy. It had and continues to have strong revenue and earnings growth, has been profitable and offers a strong balance sheet.
Due to the events that took place in surrounding the coronavirus, ZM share price blew up. It was as if someone came and threw gas on an already furious fire. That trend was already in place. Unlike the spike in PPE products, which will not sustain high sales in a pandemic-free world, video conferencing, and now Zoom Phone, are here to stay.
That is because Zoom meetings are cheaper than in-person meetings, more productive as they take no travel time , and are more convenient. The bottom line is that Zoom is a platform that has shown significant staying power. Although the current cash flow forecast suggests that Zoom is overvalued, based on certain lifestyle and business adjustments, Zoom will most likely remain an essential tool for years to come. When Financhill publishes its 1 stock, listen up. After all, the 1 stock is the cream of the crop, even when markets crash.
Financhill just revealed its top stock for investors right now The author has no position in any of the stocks mentioned. Financhill has a disclosure policy. This post may contain affiliate links or links from our sponsors. Home Investing. Is now the time to buy stocks, or is Zoom stock overvalued?
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– Zoom stock walks back initial surge following earnings beat, improved profit forecast – MarketWatch
One way Zoom executives expect to widen the addressable market is a focus on call centers and providing software for them. The company previously attempted to acquire Five9 Inc. FIVN, For more: Zoom and Five9 may not be broken up forever. MSFT, Zoom executives also announced Monday that ServiceNow Inc.
NOW, CPI inflation data is out on Friday. You can follow him on Twitter jowens But those who continue to hold for the long term have a different perspective. And one of them believes the company has a path to five-bagger returns, which would most likely be a market-beating investment in the coming decade. And not this year’s high. This is the all-time high reached during the middle of That’s when the stock peaked.
This has been a longer, more painful journey for Zoom shareholders and I’m right there with you. Why is Zoom down so much? Quite frankly, why was it up so much in the first place? I mean, this was a little bit of the stock getting ahead of the company and the business fundamentals. A lot of companies fit that profile.
Zoom, no exception here. I think there was a little bit of a narrative that got ahead of the business fundamentals. I think that that narrative has now shifted away from Zoom. The narrative says that this company can’t succeed now that we have a vaccine, now that we’re getting control over this coronavirus.
As we move away from the pandemic, the demise of Zoom, it is inevitable. That’s kind of the narrative that is going on out there. I think that that is a lot bit of a mistake when you look at the business fundamentals as we’ll see here in a minute. Another thing that really hurt Zoom was a failed acquisition. They were looking to acquire Five9 and get into just expand their total addressable market. They were going to do an all-stock deal. That didn’t really sit well with investors, the stock started tumbling and then the deal fell apart, [LAUGHTER] and then the stock tumbled even more from there.
That is one big thing that did happen that has had a negative effect on the stock. Now, a couple of growth drivers here that I think really buck the narrative that Zoom was a pandemic-only stock. This company is still growing. They have many products to build upon their existing products. Previous Close Volume 5,, Market Cap Press Releases. SEC Filings. Yahoo Finance Video.
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