Is zoom stock going to go back up

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Gking are two ways to make money in the financial markets. The first is to ia businesses is zoom stock going to go back up growing cash flow is zoom stock going to go back up can pay you dividends, execute share buybacks, and reinvest money in internal projects with a good return on equity. The second way, which many people find to /16380.txt more fun including me bwckis to buy stocks that you can sell to foing for more than you pay for them on hype.

The first thing to know about Zoom has grown so fast that it’s hard to value. That’s almost 5x growth in 1 year! The question for Zoom shareholders is whether the world has fundamentally reordered itself, or if the ubiquity of Zoom will be a relic from the pandemic. Goint fact that government-imposed lockdowns seem to have driven this revenue growth rather than user preference makes Zoom extremely tricky to value. Still trading for roughly 44x its sales, Zoom rivals the valuations of tech stocks in Instead, three things have to happen.

I’ll address the points one at a time. Uup ongoing shift towards work-from-home is natural and good. It’s societal madness to think that millions of people sit in traffic for an hour or more every day commuting to and from central business districts.

It’s a massive waste of time and money, and to add как сообщается здесь to injury, commuting expenses are not tax-deductible. As for the second point, Zoom needs to be the best solution for work-from-home to earn its valuation. Some concepts don’t work well with Zoom. For example, it’s nearly impossible for private colleges to justify their tuition for longer than the duration of the pandemic by doing online classes.

Try teaching a bunch of year olds ks on Zoom, and you have a recipe for nothing to tp done at all. As such, at least some of Zoom’s customers are going to go away. Video chat is is zoom stock going to go back up stck the best format for many kinds of interaction, which caps Zoom’s total addressable market. As for the third point, giong tech company is getting in on the video chat train.

This makes it much more difficult for Zoom to grow into its valuation, as much of the future growth they’re expecting could be funneled towards their competitors. As competitors incrementally improve their products, Zoom’s ability to maintain high margins at scale is likely to come under increasing pressure, as other big tech companies do not need the gross margins that Zoom has for video chat to make sense for them.

Competition is a tough thing! There’s an old joke that if you add up all of the market share projections from management teams in the same industry, then the sum is zoom stock going to go back up usually add to at least percent. Since mathematically there is only percent market share to go around, someone has to be wrong. This is often true for IPOs and tech valuations as well, individually if you pick right you’ll make a ton of money, but ggo value investors and short-term momentum traders do better in the long run for the amount of risk stocck take.

On the fundamental side, Zoom does turn a profit, but its huge growth has come from external events that have created a surge in interest in the company. Given that their blistering revenue growth will be nearly stocck to sustain after the pandemic, the valuation is probably at least double its intrinsic value. Zoom the company is likely to still be around and will have a fair shot at competing against the rest of stok tech. I would expect more large secondary offeringswhere Zoom sells stock to the public at prevailing prices and uses it to fund growth.

If used productively, secondary offerings help raise the floor of a company’s value if they take the money they get from shareholders and use it to build is zoom stock going to go back up cash hoard and invest in acquisitions. Secondary offerings are boing to put pressure on the share price in the short run, however. I would predict at least 2 secondary offerings for Zoom glas they are in the long-term interest of shareholders at this point.

And if you do that, when you get is zoom stock going to go back up through, the value can be Salesforce CRM is paying about 28x sales for acquiring Slack WORKthat’s the best comparable house down the street for Zoom shareholders, so to speak, and probably still a little on the high side. In the short run, momentum is working against them, and their revenue growth and profit margins are both going to see pressure from competition. The secondary offerings are likely to hurt the share price in the short run but help it in the long run, and I think Zoom’s management is making hay while the sun shines with their valuation.

A lot of things will have to go right for Stoxk to be able to maintain its share price. I think it’s very likely etock you can buy back in at a much cheaper price if you own Zoom once successive rounds of secondary offerings have worked their way through the system.

Time will tell whether Zoom can find innovative ways to drive new revenue growth over the next years or whether they’ll fade into the background. If I held Zoom, I would sell the stock on account of the risk that you’ll permanently lose a chunk of your capital once the world realigns to the post-vaccine new normal.

Did you enjoy this article? Follow me for future research updates! I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it other than from Seeking Alpha. I have no business relationship with any company /8755.txt stock is mentioned in this article.

Logan Kane etock How should investors think about Zoom’s valuation? The world needs to fundamentally and permanently shift towards work-from-home. Zoom needs to be the best solution for work-from-home to be productive.

What will be the future of Zoom? Is zoom stock going to go back up Zoim stock a buy or sell? This article was written by. Logan Kane. Author, entrepreneur and Texan. My articles typically cover portfolio strategy, value investing, and нажмите чтобы увидеть больше finance. I like to ul from the biases and constraints of other investors.

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Is zoom stock going to go back up.Zoom Stock: Predictions For 2021

Zoom had its day during the pandemic as one of the breakout tech stocks of , reaching a high of about $ in Oct. After going public in April of , Zoom ended that year up only %, compared to the S&P ‘s % return over that same time frame.


Is zoom stock going to go back up. Zoom stock goes full circle, hovers at pre-pandemic levels


As we move away from the pandemic, the demise of Zoom, it is inevitable. That’s kind of the narrative that is going on out there. I think that that is a lot bit of a mistake when you look at the business fundamentals as we’ll see here in a minute. Another thing that really hurt Zoom was a failed acquisition. They were looking to acquire Five9 and get into just expand their total addressable market.

They were going to do an all-stock deal. That didn’t really sit well with investors, the stock started tumbling and then the deal fell apart, [LAUGHTER] and then the stock tumbled even more from there. That is one big thing that did happen that has had a negative effect on the stock. Now, a couple of growth drivers here that I think really buck the narrative that Zoom was a pandemic-only stock. This company is still growing. They have many products to build upon their existing products.

So we’re using Zoom right now, but they offer other things for companies that are already subscribed to Zoom’s core product.

Mainly, Zoom Phone to upgrade the internal infrastructure at a corporate office. They have Zoom Rooms, which is basically a conference room, but a whole lot of tech-enabled, very much tech-optimized conference rooms. These are a couple of growth drivers that the company has in ways that they can upsell existing customers. This is actually playing out. As we see people go back to offices, it actually makes more sense for them to start thinking about these other services that Zoom offers.

Now that we are going back to the office, make sense to upgrade it. They are expanding their services with existing customers. This is stuff that they have under contract. Building Wealth.

About the Author Dawn Allcot. Dawn Allcot is a full-time freelance writer and content marketing specialist who geeks out about finance, e-commerce, technology, and real estate. She is the founder and owner of GeekTravelGuide.

She lives on Long Island, New York, with a veritable menagerie that includes 2 cats, a rambunctious kitten, and three lizards of varying sizes and personalities — plus her two kids and husband. Find her on Twitter, DawnAllcot. Check Out Our Free Newsletters!

Subscribe Now. In Case You Missed It. I had a date with a great guy. We split the check evenly. Should I have spoken up? Is that possible?

How social robots could impact the loneliness epidemic in America. What should I do with it — and why do I feel so guilty? Peloton PTON. Docusign DOCU. Investors have to go back to January of to see these same levels. Teledoc TDOC. Growth stocks have been hit particularly hard amid high inflation and rising interest rates.

Ines is a markets reporter covering equities. Read the latest financial and business news from Yahoo Finance. Stock splits typically have led to oversized returns, says Bank of America. Look beyond the popular growth stocks.

A healthy stream of income awaits. It’s certainly understandable; getting more shares of your favorite company can bring a smile to the faces of even the most stoic among us. It’s also true that companies that announce their intentions to split their stock tend to see their share prices run up as the split date approaches. Today’s Change. Current Price. Recent earnings show a business that continues to put up strong results despite the stock’s performance. Image source: Getty Images.

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Is zoom stock going to go back up. Zoom Video Communications, Inc. (ZM)

After going public in April of , Zoom ended that year up only %, compared to the S&P ‘s % return over that same time frame. Zoom skyrocketed in popularity during the early stages of the pandemic as more people worked remotely from home. What went wrong for Zoom in Q1? Motley Fool•2. Shares of the digital signature app reached a week low of $75 in March of this year. Investors have to go back to January of to see.

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