Down 50% From Its High, Is Zoom Stock a Smart Buy?
Zoom Video Communications (NASDAQ: ZM) is a great example of the Gartner Hype Cycle in action. If you're unfamiliar with the Hype Cycle, it depicts the perceived value of a new technology or trend over time. Generally speaking, expectations tend to be too high at first, then too low, before finding common ground somewhere in the middle.
Last year, the pandemic sent Zoom stock soaring 765% as it reached an all-time high of about $589 per share in Oct. 2020. Since then, the stock has crashed back to earth, falling over 50% from that peak. And while I certainly can't say Zoom is done falling, I still think it's smart to buy a few shares at the current price.
Here's why.
Source Fool.com
