2024-02-01 12:46:29 ET
Summary
- Zoom is facing fierce competition in the UCaaS market, but is able to defend its share against major rivals.
- The company has a strong and differentiated product portfolio, a growing enterprise customer base, and a solid financial performance.
- Market is exaggerating the competitive threat. Zoom has opportunities for future expansion in the Zoom Phone and Contact Center segments, which have shown remarkable growth and potential.
Thesis
Zoom Video Communications (ZM) was one of the biggest beneficiaries of the covid era, as its video conferencing and collaboration platform saw a surge in demand. However, the stock suffered a sharp decline in the following years, as the market turned bearish due to various factors, such as competition, macroeconomics, and valuation. The stock lost nearly 90% of its value from its peak in 2020 and since lagged behind the S&P 500 and NASDAQ indexes....
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Zoom Video Communications Has A Future