ZOOM - Zoom Stock: The Time Is Now

October, 17 2022 01:18 PM Zoom Technologies

Tech stocks that rose in the early days of the COVID-19 outbreak have taken the worst of the damage. Few companies have taken a more significant fall than Zoom Video Communications stock ( NASDAQ:ZM ). The stock’s value has dropped by around 86.9% from its high in 2020.

Zooms stock ( NASDAQ:ZM ) price in 2020 may have gotten far ahead of itself. However, the losses it has endured subsequently have gone too far. Zoom shares are now available for only 20.3 times adjusted earnings forecasts for the fiscal year ending January 31, 2023.

A fantastic value

The average stock in the Nasdaq-100 index is now trading at 20.8 times forward-looking earnings expectations. This suggests that the market expects Zoom to expand slower than the typical Nasdaq-100 company.

Revenue increased 8% yearly to $1.1 billion in the second fiscal quarter. This isn’t fantastic, but it’s crucial to recall how quickly this company has expanded over time. Zoom’s entire income stream has grown at an astounding 96.1% compound annual growth rate over the last three years.

Because of the COVID-19 epidemic, most firms were scurrying to discover the work-from-home options that Zoom already provided. So you may be shocked to discover that most of those firms have remained, and new ones are joining them. During the three months ending July 31, 2022, the firm claimed a 120% net dollar growth rate among its enterprise clients.

Why is Zoom’s stock price plummeting?

Zoom is not immune to macroeconomic forces, such as the Ukraine conflict and the EU’s ensuing energy crisis. When you factor in a stronger dollar, it’s no surprise that sales from ...

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