Zoom Stock Analysis: Is It a Buy Now or Time to Look Elsewhere?
Sunday, 3 March 2024, 13:40
Zoom's Growth Trajectory
Zoom, once known for hypergrowth, is now navigating slower growth rates post-pandemic.
Financial Performance
- Revenue: Up 3% year over year in Q4 2024
- Adjusted EPS: Increased by 16% year over year
Outlook for Fiscal 2025
Zoom expects its revenue to rise by only 2% with a 7% drop in adjusted EPS in fiscal 2025.
New Initiatives
- Investments in AI-driven services and tools.
- Focus on expanding enterprise customer base.
Zoom's aggressive buybacks indicate the stock may be undervalued.
Conclusion
Despite a sluggish sales growth outlook, Zoom's stable margins could appeal to some investors seeking long-term value in the cloud space.
This article was prepared using information from open sources in accordance with the principles of Ethical Policy. The editorial team is not responsible for absolute accuracy, as it relies on data from the sources referenced.