Is Zoom Video Communications Stock a Buy?
Zoom Video Communications (NASDAQ: ZM) posted another exceptional quarter that smashed analysts' expectations and management's guidance. Following these remarkable results, the stock price jumped more than 30% from its previous-week all-time highs, valuing the company in excess of $120 billion. Given that, is Zoom stock still a buy?
After a phenomenal fiscal first quarter, Zoom kept profiting from the coronavirus-induced accelerated shift to remote work during its fiscal second quarter, ended July 31. And the extra features and free offerings tech giants such as Microsoft and Facebook announced for their video communication solutions over the last several months didn't seem to have a negative impact on Zoom's business:
The jaw-dropping 355% revenue growth was partly due to the increased use of video communications from existing customers. For the ninth consecutive quarter, the net dollar-based expansion rate exceeded 130%, which means existing customers with more than 10 employees spent 30% more than one year ago. But more remarkably, new customers accounted for approximately 81% of revenue growth.
Source Fool.com
