2024-01-27 06:57:28 ET
Summary
- I argue that Zoom Video Communications has lost favor among investors, and I maintain a neutral stance on the stock.
- Despite the stock's decline, I emphasize that a decrease in value does not necessarily imply undervaluation; for me, the crucial factor is whether the stock presents a compelling risk-reward scenario.
- The graphic illustrating Zoom's customer adoption curve suggests a departure from high-growth status, raising concerns about the stock's premium valuation.
Investment Thesis
Zoom Video Communications (ZM) has fallen out of favor with investors. In fact, I will always contend that just because a stock is down from its highs, doesn't make a stock undervalued....
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Zoom: Not Zooming Anywhere