2 Reasons to Buy Zoom Video Communications, and 1 Reason to Sell

Zoom Video Communications (NASDAQ: ZM) has a case for winning the award of poster child stock during the pandemic. Society leaned heavily on its video-conferencing software when lockdowns prevented face-to-face interactions. But after a fun ride, the stock has bucked the rails in 2022 and is now down 87% from its high.

Investors are left grappling with whether Zoom's long-term potential looks more like the stock did during the pandemic or during 2022. So to help make that decision, here are two reasons to buy shares today and one reason to sell.

Zoom is a communications software platform. Most know it as a video call tool, but its capabilities stretch beyond that to event management, collaboration tools, call center software, and more. Today, Zoom has more than 213,000 enterprise customers and generated nearly $4.4 billion in total revenue in its 2023 fiscal year, ended Jan. 31. The business is profitable at that size -- Zoom turned $0.27 of every revenue dollar into free cash flow in the fiscal year 2023 and earned $4.37 per share. 

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Source Fool.com