I Never Thought I'd Say This, but Zoom Is Starting to Look Like a Bargain
I never expected to say this, but shares of Zoom Video Communications (NASDAQ: ZM) are starting to look like a good value, if not a downright bargain. Zoom is perhaps the poster child for the "work from home" stocks that surged to unprecedented heights during the height of the COVID-19 pandemic. At one point, Zoom had a bigger market cap than Exxon Mobil, one of the world's largest energy companies, and a higher market valuation than the world's seven largest airlines put together.
In hindsight, shares of Zoom got way too frothy and the pendulum clearly swung too far in the bullish direction for many of these work-from-home stocks during that unprecedented time. But just like the market got overly exuberant about Zoom then, the pendulum seems to have swung too far in the other direction and the market now seems too bearish on Zoom. Shares plunged 15% after the company reported slowing growth and lowered its guidance during its second-quarter earnings, and the stock is now down 77% from its 52-week high of $357.93. The company reported single-digit revenue growth for the first time since 2019 and missed consensus analyst estimates for the first time since going public. But here's why the market looks like it is too bearish on Zoom.
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Source Fool.com
