Zoom stock just crashed — here’s the simplest reason why

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– Zoom Stock Extends Fall Amid Fears Growth Could Be Worse Than Advertised | Barron’s

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With lockdowns in full force, people “Zoomed” with friends and family, students Zoomed for school, and businesses Zoomed with clients. The world definitely took on a digital focus. Despite this blistering revenue growth, the stock price somehow outran it.

The stock’s price-to-sales ratio shot as high as , making Zoom one of the most expensive stocks on the market at the time. ZM data by YCharts. It only makes sense that as pandemic lockdowns eased and Zoom’s temporary surge in growth faded, investors would begin to cool on the stock. The stock price decline has been steep, possibly pushed lower by a broader market sell-off among growth stocks in But just because Zoom couldn’t maintain its triple-digit growth rate, it doesn’t mean the company isn’t still thriving.

In the third quarter of fiscal ending Oct. Zoom Phone, which is the company’s new unified communications app , is helping drive this spending. Management reported in Q3 that Zoom Phone saw triple-digit percentage revenue growth year over year. As the world faces war, an ongoing public health crisis, and social injustice, corporate executives have found themselves facing questions from their own employees about whether or not they plan to take a stand. From buying groceries to gasoline to automobiles, inflation has hammered Americans’ purchasing power.

In fact, the most well-known metric of inflation has soared to a four-decade high. Meanwhile, the Federal Reserve enters a blackout period before its next policy-setting meeting later this month. Although big drops in the stock market can be unnerving and tug on investors’ emotions, they’re also, historically, an excellent time to put your money to work.

Corrections and bear markets tend to run their course relatively quickly, and all notable declines throughout history have eventually been erased by a bull market rally.

Bloomberg — From Seattle to Silicon Valley to Austin, a grim new reality is setting in across the tech landscape: a heady, decades-long era of rapid sales gains, boundless jobs growth and ever-soaring stock prices is coming to an end.

Europe, where Tesla has just opened a production site, is an important market for the electric vehicle manufacturer and its CEO. Bloomberg — Sign up for the New Economy Daily newsletter, follow us economics and subscribe to our podcast. These two stocks will pay you in your sleep and alleviate your concerns about the ongoing tech sell-off. Dow Futures 32, After that, the stock continued to slump as the Ukrainian conflict weighed on markets. Investors are concerned about slowing growth, which is bad news at a time when investors are moving away from riskier assets.

The company has retained and built upon its COVID bump, but it’s settling into a phase that could never justify its previous valuation.

The pricing is much more reasonable now at an 8. 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 NOW, Apple Inc. You can follow him on Twitter jowens Home Industries Software Earnings Results. Earnings Results. By Jeremy C. ZM Leveraged Commentary and Data Research Online. In This List Zoom share price decline steepens as revenue growth shrinks. Blog smartphone shipments rose 5.

Blog Insight Weekly: Ukraine war impact on mining; US bank growth slowdown; cloud computing headwinds. Post-pandemic slump The company “zoomed to scale last year, but post-pandemic growth is a different story,” Deutsche Bank’s Matthew Niknam said in a research note, maintaining a “hold” rating on the company. Beyond the hype Other analysts note, however, that while not matching its meteoric rise during the pandemic, Zoom is not losing any ground and, in fact, continues to grow. Competition for users Castanon thinks that the momentum Zoom experienced during the pandemic lit a fire under its larger, deeper-pocketed competitors — including Microsoft Corp.

 
 

Why Zoom Shares Are Falling – Here’s how these Fools think about a post-earnings dip.

 
The stock is down nearly 80% since its October peak, due to a combination of slowing growth and reduced valuation multiples for technology. Zoom Video Communications has gone from COVID darling to a zero that investors are selling, perhaps unfairly.

 

Why zoom stock drop. Why Did Zoom Stock Drop 14% in February?

 
Both users and investors flocked to Zoom in

 
 

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