Why is the zoom stock down

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Why is the zoom stock down. Zoom Video Communications, Inc. (ZM)

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But bargain-hunter Buffett continues to bet on big oil. Uh oh Something went wrong while loading Watchlist. ET by Wallace Witkowski. It became cheaper relative to sales and expected earnings. Go to Watchlist.
 
 

 

Why is the zoom stock down –

 
The stock is down nearly 80% since its October peak, due to a combination of slowing growth and reduced valuation multiples for technology. ZM | Complete Zoom Video Communications Inc. stock news by MarketWatch. View real-time stock prices and stock quotes for a full financial overview. Zoom stock is now 80% below its October all-time high, despite its ongoing growth. The company’s sales grew more than 20% last quarter.

 
 

Why is the zoom stock down –

 
 

Founded in by brothers Tom and David Gardner, The Motley Fool helps millions of people attain financial freedom through our website, podcasts, books, newspaper column, radio show, and premium investing services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources , and more. Book Now. Zoom Video Communications ZM Rising inflation has forced the Federal Reserve to increase interest rates, which work to decrease the present value of future cash flows.

That’s not the only headwind for Zoom; economic reopening has meant workers are returning to offices, and organizations’ need for video communication software is decreasing.

Still, it’s not all doom and gloom for Zoom. Let’s look closer at its prospects and consider its valuation to determine if long-term investors should buy Zoom stock. ZM data by YCharts. It’s essential to realize the company was growing revenue rapidly even before the pandemic.

This is vital to remember because some investors assume that Zoom was not a fast-growing company before the outbreak, and the only reason it gained prominence was the rise of remote working. Note Zoom’s fiscal year ends in January, and its most recently completed year was fiscal Zoom’s video communication software seamlessly connects individuals or teams, who can then share their screens with each other and record the meetings for later viewing.

When my university sent students home for remote learning, I used Zoom to deliver multiple lectures, recorded the lessons, and uploaded them for students to view whenever they wanted. Students appreciated the convenience of learning from home and the availability of recorded lectures to view anytime.

Now that economies are reopening and folks are returning to offices and campuses for working and learning, the use cases for Zoom could decrease. That said, these few years during the pandemic highlighted the effectiveness of remote meetings. As the world emerges out of the pandemic, it will be apparent that some habits adopted will be long-lasting. Remote work may not exist as much as it did during lockdowns, but certainly more than before the outbreak.

Not all meetings will be over Zoom, but probably more than before Indeed, for fiscal , management does not expect revenue to decrease. Due to that sell-off, Zoom stock is cheaper than ever. Zoom is trading at price-to-free cash flow and price-to-earnings ratios of 22 and 24, respectively. According to those metrics, Zoom is significantly discounted. So, to answer the question posed in the headline, yes, Zoom stock looks like a buy right now.

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ZM data by YCharts Zoom’s explosive growth is slowing down It’s essential to realize the company was growing revenue rapidly even before the pandemic.

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