The high-growth communications specialist Zoom Video Communications (NASDAQ: ZM) announced plenty of new exciting products and features during its Zoomtopia user conference last week. In addition, management raised its long-term profitability goal. Yet, despite these encouraging developments, Zoom stock seems overvalued. Here's why.
The coronavirus pandemic has significantly boosted Zoom's video communications business over the last couple of quarters. For instance, fiscal Q2 revenue grew 355% year over year to $663.5 million as consumers and enterprises embraced virtual communications during shelter-in-place orders.
Source Fool.com