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And if people get to go back to their old lives, either eventually or sooner than eventually, that takes a little bit of the helium out of the Zoom stock, but, you know, [laughs] it’s still a pretty richly valued stock.

Now, some of the guidance is a little bit cautious for , because Zoom, like the rest of us, doesn’t really know what’s going to happen. And so, the massive, rapid, profitable adoption of Zoom across so many industries and so many people is great, but will everybody stick around when they have the option not to.

And Zoom doesn’t yet know, it’s optimistic that it’s providing a service that’s going to be entrenched in people’s and businesses’ lives to a great degree, but it can’t make those promises. I think that the company is known for exceeding expectations, and the guidance that it provides. As you point out, the guidance is more conservative than Wall Street was maybe hoping for.

So really, there is some inflated, you know, price earnings multiple on top of the really unbelievable growth. But, you know, it could get cut-in-half again from here, sure, but it would still quadruple, triple what it was last year.

This is similar to the recent partnership between Target and Ulta Beauty. Sephora is going to open hundreds of small beauty shops inside Kohl’s stores. They’re aiming for by next Fall and more than by That’s ambitious, but this also seems like a smart move by Kohl’s. Barker: This is a smart move by Kohl’s. Sephora is getting out of J. And I would say what this does is, we talk sometimes floors-and-ceilings, I mean, Kohl’s was exploring what the floor was for its business back in March.

So, it still had a bad year as a stock, even though it’s more than tripled in that time period. And if Sephora were the cure-all for a retailer’s woes then J. Penney would still be thriving, right? It’s leaving intelligently, as far as picking up and taking its business away from J.

Penney and going into Kohl’s, but Sephora is not on its own going to be any more able to make Kohl’s a hot retail opportunity than it was able to do so for J. Nevertheless, Kohl’s is a better operation than J. Penney, certainly hasn’t gone through quite the disruptions that J. Penney has, but you know, keep in mind, this is more shoring up the floor than exploring the ceiling. Hill: No. But it’s absolutely something they need to do. And it reminded me a little bit of the partnership they struck with Amazon , I’m talking about Kohl’s, of course, to provide returns within Kohl’s locations.

This gives people one more reason to actually go into a Kohl’s. Kohl’s does curbside pickup, I don’t see them promoting it in the same way that we’ve seen Target and Walmart , but those two businesses have certainly provided a blueprint for what Kohl’s could be in the future. I don’t know. I’m not buying shares of Kohl’s, but I don’t think it’s unreasonable that the stock is up today in the way that it is.

So, even though it was losing on the margins, it was buying back shares and keeping that earnings per share story reasonably consistent. It’s not going to suffer quite as much as your J. Penney, Sears , highly mall-based stores like this, but it’s still an uphill battle against Amazon.

It’s improved the online experience, but it’s got a long way to go. Hill: Our email address is MarketFoolery Fool. Question from Sean Bryan in Harrisville, Utah, who writes, “I think there may come a time when people will look back and wonder how we justified eating animal meat, at least in the amounts that we do now?

If the War on Cash is followed by a “War on Meat,” what are the first three stocks you would put in that basket? It’s an interesting thought exercise, the obvious first stock is probably Beyond Meat , and if Impossible Foods goes public, they’re in there as well.

Barker: Yeah, I guess it would depend, you know, if the war is being waged against the meat processors, right. You want to stay pretty far away from Smithfield, for instance, which is now owned by China. But I think, obviously the Beyond Meats of the world are where you would, kind of, start with that. Is poultry being taken out too in this example? By the way, I’m totally willing to entertain the notion that meat consumption is going to suffer as people become, one, they’ve got more opportunities to get a meat-like taste from the Beyond Meats, but, you know, an increased exposure to the story of factory farms and things like that, I could certainly see society turning its back and looking back on our generation and how much meat we eat and how we produce it as being something that is fairly horrifying to the future generations.

Hill: Well, to answer your question, Sean writes “eating animal meat,” chickens are animals, so, yeah, I guess [laughs] poultry is part of that as well. Barker: Yeah. Whereas poultry often, and has picked up from peoples moving away for purely health reasons, away from red meat, boy! Barker: Yeah, I do think these are trends that need to be considered.

And I think Tyson Foods is one of those things that I wouldn’t put all of my money into or Hormel or any of those. Hill: I also think it’s a trend that needs to be considered, I don’t think, for investors, this is as lucrative a trend, both, in the near-term or even in the long-term, as the War on Cash.

And likely to be a much bloodier war too. I mean, beef and the production of it are about as central to the iconography of the American experience as you can get. If you’re like me, the fact that you have never driven a herd of cattle to the slaughterhouse, it’s probably something that you consider a failure at a certain level, as an American man.

Don’t you feel at some level, like, you’re supposed to have done that by now? It may not be a level you could even put words into; I see you struggling, but you know what I’m talking about. Hill: I think you’re talking about the movie City Slickers , which is the only passing thought I ever had of like, I wonder what that would be like.

And then by the end of the movie, I thought, well, that was a fun movie, but, no, I’m not interested in doing that. Barker: No, no, no, not as a vacation, as a, you know, you’ve got to do this or the ranch is going to have to be sold, like this level of being tied to the land and the animals and the production of your own food and all that, in a way that — look, you’re a big movie fan, you’ve watched your fair share of westerns, I mean, I’m not talking City Slickers level.

Hill: Yeah, my fair share of westerns is probably smaller than other people’s fair share of westerns. Barker: But you know, that this is laced into the American psyche. And if you’re going to take beef away, boy! Hill: Well! And to go back to the War on Cash, how much resistance is cash putting up? Is the U. Treasury [laughs] really Treasury Department?

I’m going to say, no. Whereas to your point, yeah, the beef industry, the poultry industry, yeah, they’re going to put up a fight. Hill: Great commercial. And the fact that you have them voiced by people like Sam Elliott and Robert Mitchum, I mean, two of the all-time great voices. So, yeah, those are — you know, again, [laughs] the U. Treasury Department is not running second commercials on television or second pre-roll ads on YouTube to be, like, “Cash.

It’s What’s In Your Wallet” like, no, they’re not doing that. Barker: Right. And even if you saw that, even if they produced a great commercial, you probably wouldn’t get misty-eyed for — oh, God! Those were the days. Just wouldn’t happen. Whereas you watch that commercial and you’re like, I’ll tell you what I’m having for dinner, beef. Hill: [laughs] Because it’s what’s for dinner. It’s December 1st, it is the beginning. If you had just started listening to MarketFoolery in the past six months or so, you’re not aware of what we’ve been doing every year since , which is, Producer Dan Boyd and I are on a mission to improve the menu of holiday music here in America as stations flip to all-holiday formats and play the same 50 songs.

Starting in , me and Dan Boyd, and it’s mostly Dan because he’s got the music expertise and depth of knowledge for all kinds of great holiday music that never makes it to the radio airwaves. So, that’s what you’re going to hear this month. In lieu of our normal closing music, you’re going to hear a different holiday song every day.

I’ll probably be watching, I will not be live tweeting, because I feel like I’ve done that enough and there’s no need to go down that road. But you had mentioned to me that you had an idea for a Christmas movie that you wanted to pitch me. Founded in by brothers Tom and David Gardner, The Motley Fool helps millions of people attain financial freedom through our website, podcasts, books, newspaper column, radio show, and premium investing services.

Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources , and more. Learn More. Investors were underwhelmed by the company’s latest quarterly earnings update, specifically regarding the new year financial outlook. The steady decline over the past year and a half isn’t reversing on the back of a solid fourth quarter of fiscal the three months ended Jan.

The future is of far greater importance than the past, though, and that’s been the rub for Zoom for quite some time. Revenue growth keeps slowing down, and it looks like that trend could continue in fiscal the 12 months that will end Jan.

At this point, Zoom is no longer the richly valued stock it was at its IPO a few years ago. Shares trade for about 21 times trailingmonth free cash flow to enterprise value , and about 34 times expected fiscal adjusted EPS. Zoom is still growing, albeit at a much more modest pace as effects of the pandemic gradually wear off.

But sooner or later this stock will find a bottom if the business itself remains strong as it has been in these uncertain times. Cost basis and return based on previous market day close. Calculated by average return of all stock recommendations since inception of the Stock Advisor service in February of Discounted offers are only available to new members.

Calculated by Time-Weighted Return since Volatility profiles based on trailing-three-year calculations of the standard deviation of service investment returns. Invest better with The Motley Fool.

 
 

Why zoom stock went down – none: –

 

Founded in by brothers Tom and David Gardner, The Motley Fool helps millions of people attain financial freedom through our website, podcasts, books, newspaper column, radio show, and premium investing services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources , and more.

Learn More. Zoom Video Communications ZM Now the pendulum on the stock has swung in the opposite direction. Is the stock doomed? Or will this falling knife again find an upward trajectory? Here is what you need to know.

Both users and investors flocked to Zoom in With lockdowns in full force, people “Zoomed” with friends and family, students Zoomed for school, and businesses Zoomed with clients.

The world definitely took on a digital focus. Despite this blistering revenue growth, the stock price somehow outran it. The stock’s price-to-sales ratio shot as high as , making Zoom one of the most expensive stocks on the market at the time. ZM data by YCharts. It only makes sense that as pandemic lockdowns eased and Zoom’s temporary surge in growth faded, investors would begin to cool on the stock. The stock price decline has been steep, possibly pushed lower by a broader market sell-off among growth stocks in But just because Zoom couldn’t maintain its triple-digit growth rate, it doesn’t mean the company isn’t still thriving.

In the third quarter of fiscal ending Oct. Zoom Phone, which is the company’s new unified communications app , is helping drive this spending. Management reported in Q3 that Zoom Phone saw triple-digit percentage revenue growth year over year. A growing company like Zoom is often unprofitable, but Zoom has strong financials already. This shows that Zoom’s profitability is accelerating as revenue is now outrunning the company’s costs.

The stock market can be irrational and stock traders are prone to overreact to things. Zoom’s stock was definitely overpriced at its peak, but the momentum has swung so far the other way that the stock is now arguably a bargain.

The stock price has now fallen to pre-COVID valuation levels, despite the business’s continued growth. Its price-to-earnings ratio of 34 is less than that of a consumer goods company like Nike , despite growing EPS at a triple-digit percentage rate.

It’s becoming harder to ignore Zoom based on the current valuation and substantial numbers it’s put up. If there is a worry for investors, it’s probably competition with Microsoft. Microsoft is much larger than Zoom, making it a formidable competitor with deep pockets.

Zoom, of course, competes with Microsoft Teams , which is a crucial cog in Microsoft’s grip on the enterprise market. Investors will want to monitor Zoom’s revenue growth and management’s comments on customer account growth to ensure that Zoom competes well. I think that there’s room for more than one winner in such a large market, but if Zoom starts losing so much business that its growth begins declining, investors might reconsider their stance on the stock.

Cost basis and return based on previous market day close. Calculated by average return of all stock recommendations since inception of the Stock Advisor service in February of Discounted offers are only available to new members. Calculated by Time-Weighted Return since Volatility profiles based on trailing-three-year calculations of the standard deviation of service investment returns.

Invest better with The Motley Fool. Get stock recommendations, portfolio guidance, and more from The Motley Fool’s premium services. Premium Services. Stock Advisor. View Our Services. Our Purpose:. Latest Stock Picks. Key Points. Today’s Change. Current Price. Image source: Getty Images. Zoom Video Communications. Motley Fool Returns Market-beating stocks from our award-winning service. Stock Advisor Returns.

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Why Zoom Video Communications Stock Was Down Nearly 7% Today | The Motley Fool.Zoom Stock Extends Fall Amid Fears Growth Could Be Worse Than Advertised | Barron’s

 

Zoom may be the technology story of the pandemic. But it’s no longer the why zoom stock went down – none: tech stock of the work-from-home era. That distinction now why zoom stock went down – none: to Fastlywhich went public a month after Zoom last year. Fastly’s technology helps consumers more rapidly view and retrieve digital content. Its customers include e-commerce software provider Shopifymusic-streaming service Spotify and messaging app Slackwhich are all seeing usage spikes with so many people why wont zoom mic remotely.

Some analysts are starting to see Fastly as one of the top technology winners from the accelerating trend toward working from home and staying at home.

Jaluria has the highest share price target of the six analysts tracked by FactSet who have published why zoom stock went down – none:, but even he hasn’t been able нажмите для продолжения keep up with the latest rally. In the content delivery network CDN market, Fastly is only about one-fifteenth the size of Akamai in terms of revenue, but almost half as big when it comes to market value. In his letter to staff announcing Bixby’s promotion, founder and then-CEO Artur Bergman, said “the board and I believe that Joshua is the right person to lead Fastly into the future.

Bixby wrote his first blog post as CEO ten days later, urging extreme caution to his employees:. We are suspending all non-essential travel worldwide for Fastly employees, canceling or postponing Fastly-sponsored events, and discouraging employee attendance at industry events and in-person meetings.

Though a large portion of Fastly personnel already work remotely, we have also made the decision to close all Fastly offices and temporarily enact a fully remote workforce. These changes are effective immediately. Bixby has since written two more blog posts, and neither have to do with the company’s technology. The firston April 27, was to applaud organizations providing important information about Covid The secondon June 1, was titled, “Black Lives Matter: We are taking a stand,” and came as people across the country were protesting a policeman’s killing of George Floyd.

We choose to use our /17358.txt and platform to speak up. We choose to stand in solidarity with the Black community.

Skip Navigation. Investing Club. Key Points. The stock has surpassed Zoom to become the best performer among tech companies since coronavirus concerns started roiling the economy.

VIDEO Mad Money with Jim Cramer.

 
 

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