Learn More. Generally speaking, most tech stocks have performed particularly well over the past six months as investors have looked for technology companies that are growing during the coronavirus pandemic. Zoom’s video communication service has been a bright spot for investors, as many people have used its service for work, school, and keeping in touch with friends and family. But over the past few weeks some investors have begun to sell off their tech investments and take their gains from the past few months.

This has pushed down the share price of some technology companies, including Zoom, if only temporarily. While Zoom’s stock bounced back today, it’s down from its high in early September. There’s likely more volatility ahead for Zoom’s stock, and the rest of the market. But what Zoom investors should remember is that the company’s underlying business is strong and any temporary dips Zoom’s stock experiences right now is likely just the result of investors responding to news that’s not directly related to the company.

Cost basis and return based on previous market day close. 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. A growing company like Zoom is often unprofitable, but Zoom has strong financials already. This shows that Zoom’s profitability is accelerating as revenue is now outrunning the company’s costs.

The stock market can be irrational and stock traders are prone to overreact to things. Zoom’s stock was definitely overpriced at its peak, but the momentum has swung so far the other way that the stock is now arguably a bargain. The stock price has now fallen to pre-COVID valuation levels, despite the business’s continued growth.

Its price-to-earnings ratio of 34 is less than that of a consumer goods company like Nike , despite growing EPS at a triple-digit percentage rate. It’s becoming harder to ignore Zoom based on the current valuation and substantial numbers it’s put up. If there is a worry for investors, it’s probably competition with Microsoft. The CEO of the electric vehicle maker wants to appease worried markets after one of his worrying messages about Tesla.

Stocks fell last week, but was it constructive? Tesla tumbled on Elon Musk’s “super bad” warning. Apple WWDC is due. Europe, where Tesla has just opened a production site, is an important market for the electric vehicle manufacturer and its CEO. Using technical analysis of the charts of those stocks, and, when appropriate, recent actions and grades from TheStreet’s Quant Ratings, , we zero in on three names.

While we will not be weighing in with fundamental analysis, we hope this piece will give investors interested in stocks on the way down a good starting point to do further homework on the names. Snap Inc. Meanwhile, the Federal Reserve enters a blackout period before its next policy-setting meeting later this month.

The metaverse offers added opportunities for a variety of tech stocks. All three major indexes finished the week lower.

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.

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. This projected deceleration in growth is likely what led some investors to sell their shares on Tuesday.

Still, Yuan remains optimistic about Zoom’s long-term future. 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.

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Why zoom stock drop today – none:.Will Zoom Stock Keep Falling in 2022?

Learn More. Usage of Zoom’s cloud-based video, voice, and chat tools continued to grow at a rapid clip — and many of its free users chose to upgrade to premium packages. Zoom Video Communications’ stock price pulled back sharply after its Q4 report. Image source: Getty Images. Zoom’s profitability was also impressive.

The company will also face difficult year-over-year comparisons in fiscal This projected deceleration in growth is likely what led some investors to sell their shares on Tuesday. Still, Yuan remains optimistic about Zoom’s long-term future. 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.

Stock Advisor. View Our Services. Our Purpose:. Latest Stock Picks. Today’s Change. Current Price. Tech stocks took a hit today, following steep gains over the past few months. So what Generally speaking, most tech stocks have performed particularly well over the past six months as investors have looked for technology companies that are growing during the coronavirus pandemic.

Image source: Getty Images. Zoom Video Communications. Motley Fool Returns Market-beating stocks from our award-winning service. Stock Advisor Returns. 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. A growing company like Zoom is often unprofitable, but Zoom has strong financials already. This shows that Zoom’s profitability is accelerating as revenue is now outrunning the company’s costs.

The stock market can be irrational and stock traders are prone to overreact to things. Zoom’s stock was definitely overpriced at its peak, but the momentum has swung so far the other way that the stock is now arguably a bargain. The stock price has now fallen to pre-COVID valuation levels, despite the business’s continued growth. Its price-to-earnings ratio of 34 is less than that of a consumer goods company like Nike , despite growing EPS at a triple-digit percentage rate.

It’s becoming harder to ignore Zoom based on the current valuation and substantial numbers it’s put up. If there is a worry for investors, it’s probably competition with Microsoft. Microsoft is much larger than Zoom, making it a formidable competitor with deep pockets. Zoom, of course, competes with Microsoft Teams , which is a crucial cog in Microsoft’s grip on the enterprise market. Investors will want to monitor Zoom’s revenue growth and management’s comments on customer account growth to ensure that Zoom competes well.

I think that there’s room for more than one winner in such a large market, but if Zoom starts losing so much business that its growth begins declining, investors might reconsider their stance on the stock.

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

– Zoom Video Communications Reports Fourth Quarter and Fiscal

 
 
Now, as we close in on two years since Zoom’s public debut, Zoom’s stock dropped nearly 20 percent in November after the news that. In the past month, the shares of smaller Covid tech darlings have fallen sharply — Zoom off 22 percent and Peloton 24 percent. Zoom’s price is. After adjusting for stock-based compensation expense and related payroll taxes, and acquisition-related expenses, non-GAAP income from.