ZOOM - Here's Why Zoom Stock Rose by 6% on Thursday

October, 20 2022 05:54 PM Zoom Technologies

Zoom Stock ( NASDAQ:ZM )

On Thursday, Zoom ( NASDAQ:ZM ) outperformed the market: As of 12:45 PM ET, Zoom stock price had risen by 6% , compared to the S&P 500’s decline of 0.1%. Only a minor fraction of the stock reductions experienced by the video communications specialist this year were offset by that spike. Thus far, in 2022, it’s decreased by 56%.

Investors’ mood surrounding technology companies has been rising recently, and today was no exception.

What’s the Reason?

In early afternoon trading, the Nasdaq Composite index, heavily weighted toward technology stocks, was up 1.1%; the exact general causes that fueled that increase also underpinned Zoom’s gain. Zoom stock has dropped 71% in value over the last year. They are trading at a level not far from where they were in February 2020, before their meteoric rise due to a global epidemic. Zoom’s price-to-sales ratio has plummeted due to investors’ gloomy outlook on the company’s future development as employees return to more typical office behavior. Since Zoom’s stock price has fallen so much, any signs of Wall Street confidence would likely lead to a price increase for the company’s shares.

At this time, there are several positive developments surrounding Zoom that could pique the interest of investors. Sales for the company’s enterprise business continue to climb quickly. As more businesses begin to provide their workers with the option of hybrid work arrangements, this market sector is expected to have robust development for many years to come. Unlike many other growth companies, Zoom stock is still profitable and has a healthy balance sheet with little debt.

What’s Next?

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Company Name:	Zoom Technologies
Stock Symbol:	ZOOM
Market:	OTC