Zoom Video Communications Inc. (ZM) shares turn red on fears of slow growth
The key question is whether people will stop using the video calling apps like Zoom once the pandemic ends or the trend will continue in the years to come.
avatar
Staff or Guest writer for The Dog of Wall Street.
2020-11-10 12:27

Zoom Video Communications Inc. (ZM) shares fell for the second straight day on Tuesday following the announcement from Pfizer that its coronavirus vaccine prevented more than 90 percent of infections in late stage trials without any notable side effect. The apparent reason behind the decline seems to be investors perception that the growth of the companies that greatly benefited from lockdowns during the coronavirus pandemic will now slow down after the vaccine is widely made available around the world.

Zoom Video Communications Inc. (ZM) shares turn red on fears of slow growth

Zoom greatly capitalized on opportunities offered to it during the pandemic, when people were forced to work from home. Many turned to its platform for interacting with each other, driving its share price to new highs. The company’s stock has jumped nearly 500 percent so far this year, excluding today’s fall.

The San Jose, California-based communications technology company posted revenue of $664.5 million for the second quarter that ended on July 31, representing a massive surge of 355 percent on year-over-year basis. For the fourth quarter, the company expects to report revenue in a range of $730 million to $750 million. However, some industry analysts have forecasted a slowdown in Zoom’s growth trajectory, as the economies around the world return to normalcy.

Looking forward, it is still unclear how quickly the vaccine is approved and made widely available, and in what ways it will affect the growth of Zoom. The key question is whether people will stop using the video calling apps like Zoom once the pandemic ends or the trend will continue in the years to come.

Zoom Video (NASDAQ: ZM) declined nearly 5 percent in the mid-day trading Tuesday on heavy volume of about 14 million shares, as compared to average daily volume of 10.85 million shares. The 52-week range of the stock is $62.02-$588.84, while the company’s market capitalization is approx. $111.359 billion.


Disclaimer: I have no positions in any of the stocks mentioned. I wrote this article myself, and it expresses my own opinions. I have no business relationship with any company whose stock is mentioned in this article. All information should be independently verified and should not be relied upon for purposes of transacting securities or other investments. See terms for more info.

Rate this article

positive
negative
Published On
2020-11-10 12:27

avatar
About the Author
Staff or Guest writer for The Dog of Wall Street.

Analyst Ratings
Target Price$87.02
# of Analysts30
Last updated2022-12-19

buy-coffee
You've read 1 article in the last year
..thank you for supporting us and for visiting our site. Unlike many other sites, The Dog of Wall Street is available for everyone to read. Our focus is to provide great content for free. Do you like what we are doing? Buy us a cup coffee. It is the fuel that keeps us going..

Is Rivian (RIVN) Stock a Buy Again?
The company continues to bleed money and is losing more than $40,000 per vehicle.
By Mike Sakuraba | 2 weeks ago

2 Stocks to Buy on a Pullback
Here are two stocks I’ll buy if we pull back in March.
By Mike Sakuraba | 2 weeks ago

2 Stocks to Buy for the March Bull Run
Here are 2 I have my eyes on for March.
By Mike Sakuraba | 3 weeks ago

Bitcoin is Hot: 2 Stocks to Buy Now
Here are 2 lesser-known crypto stocks that I think will benefit from Bitcoin’s bull run.
By Mike Sakuraba | 3 weeks ago

2 Stocks to Buy on the Earnings Dip
Here are two stocks that sold off that I have my eye on!
By Mike Sakuraba | 3 weeks ago

2 Stocks I'm Never Buying Again
Never is such a strong word but when it comes to investing, it is easy to never want to buy a stock again.
By Mike Sakuraba | 1 month ago

2 Stocks to Ride the NVIDIA Hype Train
Now that NVIDIA (NASDAQ: NVDA) saved the market again, is it finally time to buy?
By Mike Sakuraba | 1 month ago

Is it Too Late to Buy SMCI Stock?
Is it too late to get into SMCI after this parabolic run?
By Mike Sakuraba | 1 month ago