Is Zoom Video Communications Stock a Buy Now?
Zoom Video Communications' (NASDAQ: ZM) stock price fell 8% during after-hours trading on Aug. 22 following the release of its second-quarter earnings report. The video conferencing platform company's revenue rose 8% year over year to $1.1 billion, which missed analysts' estimates by $20 million. Its adjusted net income declined 22% to $323 million, or $1.05 per share, but cleared the consensus forecast by $0.12.
Those headline numbers were mixed, but most investors had already expected Zoom's growth to decelerate significantly after lapping its pandemic-era growth spurt. Its stock has also plunged over 80% since hitting its all-time high in October 2020, and it now looks more reasonably valued at 24 times its adjusted earnings forecast for this year. Let's see if Zoom's business is stabilizing and if its beaten-down stock is finally worth buying.
Image source: Zoom.
Source Fool.com
