This Software Stock Looks Like an Incredible Value After Its Post-Earnings Sell-Off
2026-03-13 07:45:00 ET
Software-as-a-service (SaaS) stocks have been under pressure as of late due to the growing fear that generative artificial intelligence (AI) will displace many of the most popular enterprise software providers. If a company provides even a hint that competition is negatively impacting its financial results, its stock could tumble double-digit percentage points in a single day.
Such was the case with Zoom Communications (NASDAQ: ZM) , which disappointed analysts with its fourth-quarter earnings results. Non-GAAP earnings per share (EPS) came in at $1.44 last quarter, versus expectations for $1.49. What's more, its fiscal 2027 outlook fell short of expectations by about 4.5%.
Shares of this SaaS stock tumbled as much as 15% in the days following the earnings release last month. However, it may be an incredible opportunity for patient investors.
NASDAQ: ZM
ZM Trading
-1.91% G/L:
$73.84 Last:
865,294 Volume:
$74.94 Open:
