1 Green Flag for Zoom in 2022, and 1 Red Flag
Zoom Video Communications (NASDAQ: ZM) is growing its enterprise business at a healthy clip. Yet those gains are being tempered by losses in other parts of its portfolio. That was the main takeaway from the video communications company's latest earnings report, which in late November came with a modest downgrade to management's full-year fiscal 2023 outlook (fiscal 2023 ends Jan. 31, 2023).
As the fiscal year winds down, investors have at least one big reason to like the stock today. But there's also a red flag to keep a close eye on.
Zoom is taking a financial hit as pandemic-related demand spikes reverse themselves. Profitability slumped, with operating income landing at $375 million over the last nine months compared to $812 million a year earlier.
Source Fool.com
