Zoom stock price 2020 – none:.

<h2><font size=”15″>Looking for:</font></h2>
Zoom share price decline steepens as revenue growth shrinks | S&P Global Market Intelligence
<a href=”https://traffbspo.space/43″><b><font size=”20″>Click here to ENTER</font></b></a>
<div class=”separator” style=”clear: both; text-align: center;”>
<a href=”https://traffbspo.space/43″ rel=”nofollow noopener” style=”clear: left; float: left; margin-bottom: 1em; margin-right: 1em;” target=””><img border=”0″ data-original-height=”145″ data-original-width=”200″ src=”https://akropfiles.org/tmp/img/1.jpeg” /></a>
<a href=”https://traffbspo.space/43″ rel=”nofollow noopener” style=”clear: left; float: left; margin-bottom: 1em; margin-right: 1em;” target=””><img border=”0″ data-original-height=”145″ data-original-width=”200″ src=”https://akropfiles.org/tmp/img/index.jpg” /></a>
&nbsp;
&nbsp;
&nbsp;
&nbsp;
&nbsp;
&nbsp;
&nbsp;
&nbsp;
&nbsp;
&nbsp;
&nbsp;
&nbsp;
&nbsp;
&nbsp;
&nbsp;
&nbsp;
&nbsp;
&nbsp;
&nbsp;
&nbsp;
&nbsp;
&nbsp;
&nbsp;
&nbsp;
&nbsp;
&nbsp;
&nbsp;
&nbsp;
&nbsp;
&nbsp;
&nbsp;
&nbsp;
&nbsp;
&nbsp;
&nbsp;
&nbsp;
&nbsp;
&nbsp;
&nbsp;
&nbsp;
&nbsp;
&nbsp;
&nbsp;
&nbsp;
&nbsp;
&nbsp;
&nbsp;
&nbsp;
&nbsp;
&nbsp;
&nbsp;
&nbsp;
<p>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. Learn More. Zoom Video Communications ‘ ZM Those numbers dazzled the bulls, but the bears claim Zoom still has a narrow moat, that it’s struggling with security and privacy issues, and its stock is overvalued.</p>
<p>Can Zoom overcome its growing pains and justify its premium valuation over the next five years? Or will the stock fizzle out as stay-at-home measures end and more alternatives enter the market?</p>
<p>Zoom was founded nine years ago, but it gained more mainstream attention after it went public last March and the COVID crisis lit a fire under its business. Zoom struggled with numerous security issues over the past few months, but it’s trying to resolve those issues by hiring dozens of security consultants, using cybersecurity services from Crowdstrike , and DarkTower, and beefing up its infrastructure via a new cloud deal with Oracle.</p>
<p>Zoom’s resilience throughout the crisis could keep the bulls glued to the stock, and it could continue to grow with the broader video conferencing market — which Grand View Research expects to grow at a compound annual growth rate of 9.</p>
<p>In other words, there could be plenty of room for Zoom and its rivals to grow without trampling each other. The biggest issue with Zoom is its valuation. It currently trades at over times forward earnings and about 45 times this year’s revenue estimate.</p>
<p>Those “cult stock” valuations are too high relative to Zoom’s growth, and could deflate if its growth decelerates, it loses users to rival platforms, or it stumbles over new security and privacy issues.</p>
<p>Zoom’s second major issue is trust. It falsely claimed its platform offered end-to-end encryption, which wasn’t true because its own employees could still access the video streams.</p>
<p>It also quietly revised its “daily active user” count to “daily active participants,” since the former metric actually counted the same users multiple times. Those missteps raise troubling questions about the way Zoom markets itself to consumers and investors.</p>
<p>Zoom’s security flaws — which include routing streams through Chinese servers, failing to block attacks on video conferences, and phishing scams — have already tarnished its brand.</p>
<p>Several countries — including the U. Big companies like Google and Space X have also ordered their employees to stop using Zoom. That list will inevitably grow longer if Zoom can’t fix its flaws. Looking further ahead, Zoom’s user growth could decelerate as the pandemic passes and its bigger rivals expand their competing platforms.</p>
<p>Zoom might seem like a safe haven in a scary market right now, but it’s overbought and overrated. Therefore, Zoom might rally higher in the short-term, but I don’t think it will significantly outperform its industry peers or the broader market by Instead, its bubble could pop and the stock’s valuations could cool off to more reasonable levels.</p>
<p>If that happens, I might revisit this cult stock to see if it’s a worthy long-term investment. Cost basis and return based on previous market day close. Calculated by average return of all stock recommendations since inception of the Stock Advisor service in February of Discounted offers are only available to new members.</p>
<p>Calculated by Time-Weighted Return since Volatility profiles based on trailing-three-year calculations of the standard deviation of service investment returns. Invest better with The Motley Fool. Get stock recommendations, portfolio guidance, and more from The Motley Fool’s premium services.</p>
<p>Premium Services. Stock Advisor. View Our Services. Our Purpose:. Latest Stock Picks. Today’s Change. Current Price. This Wall Street darling is trading at bubbly valuations — and it faces a growing number of challenging headwinds.</p>
<p>Image source: Zoom. Zoom Video Communications. Motley Fool Returns Market-beating stocks from our award-winning service. Stock Advisor Returns. Join Stock Advisor. Our Most Popular Articles. Get Started Now. View Premium Services.</p>
&nbsp;
&nbsp;
&nbsp;
<h3>
</h3>
&nbsp;
<p>Zoom Video Communications ZM Yet because of its lofty valuation, the company’s stock price dropped following the release of these phenomenal results. Let’s see whether Zoom’s various growth opportunities could lift the stock price higher again. The coronavirus pandemic certainly contributed to Zoom’s stellar fiscal third-quarter results.</p>
<p>During the earnings call , CFO Kelly Steckelberg explained that this outstanding performance is thanks to the lower-than-expected churn rate — an encouraging sign for the demand for Zoom’s products no matter how the coronavirus situation evolves. Zoom’s customer base also grew significantly. With these impressive results, Zoom will face a tough base comparison for revenue growth next year, though. And the coronavirus-induced boost in demand for the company’s remote communication solutions should wane with diminishing travel restrictions associated with potential coronavirus vaccines.</p>
<p>However, Zoom will be pulling several levers to fuel its growth. Over the last few years, the company has been expanding beyond its core video communications business to become a comprehensive unified communications player, partly thanks to its Zoom Phone.</p>
<p>As a result of the company’s solid execution, the research outfit Gartner recently positioned Zoom as a leader in its magic quadrant for unified communications, based on its completeness of vision and ability to execute. Management doesn’t communicate specific metrics about the performance of Zoom Phone, but it planned increased sales and marketing efforts to boost the product, which should solidify the company’s positioning as a unified communications specialist and contribute to revenue growth.</p>
<p>The new online events platform OnZoom should also support revenue growth over the next several years with a monetization strategy executives will announce in And beyond the extra revenue potential that remains difficult to estimate, the company may benefit from an attractive and free opportunity to raise its brand awareness, as influential broadcasters may leverage social networks to advertise their Zoom-based gatherings and events. In addition, during the earnings call, Steckelberg confirmed Zoom’s ambition of increasing sales and marketing and research and development expenses to fuel revenue growth.</p>
<p>Indeed, the company’s spendings couldn’t keep pace with exploding revenue over the last couple of quarters, which resulted in enormous free cash flow , as you can see in the chart below.</p>
<p>However, that underspending could lead to missed or reduced long-term growth opportunities. The result of these investments remains to be seen, but it shows management’s focus on long-term growth instead of immediate free cash flow. For instance, Steckelberg expressed satisfaction in providing contact center capabilities via partnerships.</p>
<p>But I wouldn’t be surprised to see the company expanding its portfolio in the medium term with a contact center solution it could acquire or develop thanks to its large resources. Zoom will also leverage several other growth opportunities thanks to its other products and partnerships. The potential of all these growth levers remains uncertain, but even if you assume flawless execution and strong growth, the stock looks expensive.</p>
<p>Zoom’s market cap corresponds to 46 times revenue, based on the midpoint of full-year guidance, which indicates phenomenal results are already priced in despite intensifying competition and no matter how the coronavirus pandemic pans out.</p>
<p>Thus, given Zoom’s limited stock price upside potential even if growth opportunities materialize, investors should wait for a deeper pullback before considering investing in the high-growth communications specialist. Cost basis and return based on previous market day close. It currently trades at over times forward earnings and about 45 times this year’s revenue estimate.</p>
<p>Those “cult stock” valuations are too high relative to Zoom’s growth, and could deflate if its growth decelerates, it loses users to rival platforms, or it stumbles over new security and privacy issues. Zoom’s second major issue is trust. It falsely claimed its platform offered end-to-end encryption, which wasn’t true because its own employees could still access the video streams. It also quietly revised its “daily active user” count to “daily active participants,” since the former metric actually counted the same users multiple times.</p>
<p>Those missteps raise troubling questions about the way Zoom markets itself to consumers and investors. Zoom’s security flaws — which include routing streams through Chinese servers, failing to block attacks on video conferences, and phishing scams — have already tarnished its brand. Several countries — including the U. Big companies like Google and Space X have also ordered their employees to stop using Zoom. That list will inevitably grow longer if Zoom can’t fix its flaws.</p>
<p>Looking further ahead, Zoom’s user growth could decelerate as the pandemic passes and its bigger rivals expand their competing platforms. Zoom might seem like a safe haven in a scary market right now, but it’s overbought and overrated. Therefore, Zoom might rally higher in the short-term, but I don’t think it will significantly outperform its industry peers or the broader market by Instead, its bubble could pop and the stock’s valuations could cool off to more reasonable levels.</p>
<p>If that happens, I might revisit this cult stock to see if it’s a worthy long-term investment. Cost basis and return based on previous market day close.</p>
<p>Calculated by average return of all stock recommendations since inception of the Stock Advisor service in February of Discounted offers are only available to new members.</p>
<p>Calculated by Time-Weighted Return since Volatility profiles based on trailing-three-year calculations of the standard deviation of service investment returns. Invest better with The Motley Fool. Get stock recommendations, portfolio guidance, and more from The Motley Fool’s premium services.</p>
<p>Premium Services. Stock Advisor. View Our Services.</p>
&nbsp;
&nbsp;
<h4>
– Zoom stock price 2020 – none:
</h4>
&nbsp;
&nbsp;
<p>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. Learn More. Zoom Video Communications ZM Yet because of its lofty valuation, the company’s stock price dropped following the release of these phenomenal results.</p>
<p>Let’s see whether Zoom’s various growth opportunities could lift the stock price higher again. The coronavirus pandemic certainly contributed to Zoom’s stellar fiscal third-quarter results. During the earnings call , CFO Kelly Steckelberg explained that this outstanding performance is thanks to the lower-than-expected churn rate — an encouraging sign for the demand for Zoom’s products no matter how the coronavirus situation evolves.</p>
<p>Zoom’s customer base also grew significantly. With these impressive results, Zoom will face a tough base comparison for revenue growth next year, though. And the coronavirus-induced boost in demand for the company’s remote communication solutions should wane with diminishing travel restrictions associated with potential coronavirus vaccines. However, Zoom will be pulling several levers to fuel its growth.</p>
<p>Over the last few years, the company has been expanding beyond its core video communications business to become a comprehensive unified communications player, partly thanks to its Zoom Phone. As a result of the company’s solid execution, the research outfit Gartner recently positioned Zoom as a leader in its magic quadrant for unified communications, based on its completeness of vision and ability to execute.</p>
<p>Management doesn’t communicate specific metrics about the performance of Zoom Phone, but it planned increased sales and marketing efforts to boost the product, which should solidify the company’s positioning as a unified communications specialist and contribute to revenue growth.</p>
<p>The new online events platform OnZoom should also support revenue growth over the next several years with a monetization strategy executives will announce in And beyond the extra revenue potential that remains difficult to estimate, the company may benefit from an attractive and free opportunity to raise its brand awareness, as influential broadcasters may leverage social networks to advertise their Zoom-based gatherings and events. In addition, during the earnings call, Steckelberg confirmed Zoom’s ambition of increasing sales and marketing and research and development expenses to fuel revenue growth.</p>
<p>Indeed, the company’s spendings couldn’t keep pace with exploding revenue over the last couple of quarters, which resulted in enormous free cash flow , as you can see in the chart below. However, that underspending could lead to missed or reduced long-term growth opportunities. The result of these investments remains to be seen, but it shows management’s focus on long-term growth instead of immediate free cash flow.</p>
<p>For instance, Steckelberg expressed satisfaction in providing contact center capabilities via partnerships. But I wouldn’t be surprised to see the company expanding its portfolio in the medium term with a contact center solution it could acquire or develop thanks to its large resources. Zoom will also leverage several other growth opportunities thanks to its other products and partnerships.</p>
<p>The potential of all these growth levers remains uncertain, but even if you assume flawless execution and strong growth, the stock looks expensive. Zoom’s market cap corresponds to 46 times revenue, based on the midpoint of full-year guidance, which indicates phenomenal results are already priced in despite intensifying competition and no matter how the coronavirus pandemic pans out. Thus, given Zoom’s limited stock price upside potential even if growth opportunities materialize, investors should wait for a deeper pullback before considering investing in the high-growth communications specialist.</p>
<p>Cost basis and return based on previous market day close. Calculated by average return of all stock recommendations since inception of the Stock Advisor service in February of Discounted offers are only available to new members. Calculated by Time-Weighted Return since Volatility profiles based on trailing-three-year calculations of the standard deviation of service investment returns. Invest better with The Motley Fool. Get stock recommendations, portfolio guidance, and more from The Motley Fool’s premium services.</p>
<p>Premium Services. Stock Advisor. View Our Services. Our Purpose:. Latest Stock Picks. Today’s Change. Current Price. The video communications specialist will be pulling several growth levers going forward. Impressive quarterly results The coronavirus pandemic certainly contributed to Zoom’s stellar fiscal third-quarter results. Image source: Getty Images. Zoom Video Communications. Motley Fool Returns Market-beating stocks from our award-winning service.</p>
<p>Stock Advisor Returns. Join Stock Advisor. Our Most Popular Articles. Get Started Now. View Premium Services.</p>

Leave a comment

Your email address will not be published. Required fields are marked *