1 Reason to Sell Zoom Stock, and 1 Reason to Watch It and Be Patient
Good news: Zoom Video Communications (NASDAQ: ZM) reported better-than-expected earnings for the second quarter of fiscal 2024 (the three months ended in July 2023)! Bad news: The business continues to put up pathetically low growth numbers, all the while still in need of shrugging off more elevated expenses.
In several ways, the pandemic broke Zoom. Years of growth were pulled forward, and now it should be a value-style stock, but it doesn't have the necessary business governance to do ex-growth business things like pay a dividend and repurchase ample amounts of stock.
Investors certainly wouldn't be wrong to sell and move on (if they're still holding this stock), but there was at least one reason to continue being patient with Zoom after its latest earnings update.
Source Fool.com
