2 Reasons to Buy Zoom Stock, and 1 Reason to Sell
Zoom Video Communications (NASDAQ: ZM) stock hasn't lived up to its name in 2023. Shares of the videoconferencing specialist have trailed the broader market this year, rising just 8% through early September while the Nasdaq Composite has gained over 30%.
There are some good reasons for investors to feel conflicted about this software business. Zoom's late-August earnings update was mixed, to say the least, revealing sluggish sales growth but strong financial results. Let's take a look at whether the positive trends outweigh the negative right now.
Zoom's overall sales growth has been modest this year, with revenue rising just 5% year over year in the most recent quarter. But focus on just the enterprise division -- which management has targeted as a key venue for future growth -- and the picture brightens.
Source Fool.com
