Zoom Video Communications Inc (ZM) Stock Price & News – Google Finance – Sponsored Headlines
We’ve detected you are on Internet Explorer. For the best Barrons. Google Firefox. Subscribe Now. Subscribe or Sign In. Thank you This article has been sent to. Customer Service Customer Center. For Business Corporate Subscriptions. For Education Barron’s in Education. About Barron’s Live Events Centennial. Privacy Notice. Cookie Notice. Jeremy Bowman: I think nobody likes to see a stock like Zoom, which I do own fall. Where was it down 17 percent today. But I think it really depends on the reason.
Sometimes, you see a case of where the stock falls and it’s very clear that the market’s reacting to short-term, there’s like, we dialed back our estimates because of the supply chain or sometimes it’s even something like, we’re reinvesting in the business, so profits are going to be a little short this next couple of quarters. I remember Target had a movement like that earlier this year. I think sometimes it can be a good reason to double down to invest in the stock if you spot a short-term reason, but other times, it feels more structural like what we saw with Peloton a few weeks ago.
That revealed a pretty big crack in the business that I think a lot of us didn’t anticipate. I think it’s hard to have general rule for that.
You have to take it on a case-by-case basis. Jason Hall: I think that’s a key thing right there. Definitely a lot of it depends. Taylor, what about you?
Taylor Carmichael: That’s a good question. What I love actually is when I know why the stock’s going down and the market is wrong, and I know the market is wrong. That just makes me exuberant. That makes me happy. A lot of times, you don’t know why. Sometimes, there’s massive moves in stocks and sometimes the whole market is going down. When you have that the whole market is going down, I just duck my head and try not to look.
But when COVID was hitting a year ago, early , you knew exactly why the market was going down. There was no question about it and I was a strong bull in that mess. I just knew we were going to come back and so it was ugly time for the stocks you’re holding, but it’s always exciting when you’re trying to buy things to get a cheaper price.
Zoom’s a special case. I think these are both those times that were buying opportunities. If you missed Zoom a year-ago in early , you didn’t buy it, you didn’t jump in.
Now, this might be a good time as people are getting out because Zoom’s a powerful long-term story. But I think people like working from home. I think Zoom calls on The Motley Fool are going to continue and we’re going to keep doing this and it’s really neat ability to do your job from home or from wherever.
We could travel. Airbnb on their conference call, talked about combining them with Zoom and people just traveling the world and still working. You take your Zoom with you. You take your laptop with you, and you can work from anywhere, and how powerful that is and you couldn’t do that five years ago. In general, I think as Jeremy said, it all depends. It depends on why the stock is going down. If you know why. There could definitely be when there’s these really big moves, it can definitely be a buying opportunity, but it’s always hard to predict short-term stuff.
Jason Hall: Yeah, that’s a big key right there. Connor, I would love to hear your thoughts on this too. Connor Allen: Yeah. For me, when a stock falls a lot, as an analyst, I put more work than most people would do into each company that I own. I know my thesis of why I own it. I know a lot about the company and it’s almost like you have a relationship with the company. You’re like, I love this company, this is the future and this is why I’m investing in it. It’s a little bit easier for me to see a 20 percent drop in a stock that I really like, and I’m just like, I’m not going to touch it, is my thesis still intact?
If so, I’m still owning this company. But it hurts me when my thesis actually is broken from something that causes a 20 percent drop. For example, Zillow , that happened this quarter when they came out and said that they were stopping their iBuying process, I sold the company because that was proof that the optionality that I thought they had wasn’t going to work out.
I thought that was going to be a cash cow for the business. When that happened and the stock sunk 20 percent, that hurt. Jason Hall: It fell for a clear reason and a legitimate reason. The thesis for the business completely changed, just like that. Connor Allen: Yeah, I was just saying, when you look at what has happened to a lot of companies this quarter is even when they have a good earnings report and they fall percent, Upstart’s a great example for me, where I’m like, I’m buying this.
There is times to buy the dip and there are times to sell on the dip, and I think that’s what a lot of investors just don’t understand that every dip is not a buying opportunity. But when it is, it can be great, and for a lot of investors. Jason Hall: I think to me the key is that We should buy regularly for most people, to have a regular cadence of buying and investing and once you own it, you follow the business and the thesis and then your glacial about changing anything.
Why zoom stock going down –
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Private Companies. Search Tickers. Also, the company is guiding to between 13 and 20 cents above the street for the year, but it just beat by 16 cents in Q1 and guided to 3 to 5 cents better for Q2. That implies that management’s current earnings per share forecast for the back half of the year is weaker than the street was looking for. Perhaps we’ll see a guidance raise at the next report, but that’s three months away.
Also, the buyback can be used as a way to boost earnings per share without net income actually doing better. We could also see the company shift more expenses to share-based rather than cash, which would boost non-GAAP numbers while GAAP ones would still show a troubling picture. With a number of key metrics looking worse and revenue guidance only being maintained, I don’t know if analysts will be rushing to hike their targets in the coming weeks. In the end, while the company’s results were okay, the company’s results were heavily impacted by significantly reduced expectations after the last report.
The majority of the company’s key business metrics continued to slow and show some major red flags, which doesn’t bode well for the company’s near term future. With Zoom still being relatively expensive despite this massive growth slowdown, I’m not rushing to buy shares as we ponder challenging global economic conditions.
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 whose stock is mentioned in this article. Additional disclosure: Investors are always reminded that before making any investment, you should do your own proper due diligence on any name directly or indirectly mentioned in this article.
Investors should also consider seeking advice from a broker or financial adviser before making any investment decisions.
Any material in this article should be considered general information, and not relied on as a formal investment recommendation. Bill Maurer Zoom Key Metrics Company Earnings Reports In the previous report, Zoom said it was changing some of the metrics it was reporting to better reflect its business moving forward.
Zoom Still Dominates Video Meetings. But Slowing Growth Is an Issue for the Stock. | Barron’s.ZM Stock Price | Zoom Video Communications Inc. Stock Quote (U.S.: Nasdaq) | MarketWatch
Analyst Price Target on ZM. GBX People even got married on Zoom.