3 Things About Zoom Video Communications That Smart Investors Know
Zoom Video Communications (NASDAQ: ZM) became synonymous with online video calls during the pandemic. Its triple-digit revenue and earnings growth in fiscal 2021 (which ended in January 31, 2021) also brought in a stampede of bulls during the buying frenzy in growth and meme stocks throughout 2020 and 2021. That's why its stock hit an all-time high of $568.34 on Oct. 19, 2020 -- representing a 1,479% gain from its IPO price of $36 on April 18, 2019.
At its peak, Zoom's enterprise value reached $160 billion -- or 60 times the revenue it would generate in fiscal 2021. That nosebleed valuation became unsustainable as its growth cooled off in a post-pandemic world, more competitors entered the market, and rising interest rates ushered investors toward more conservative investments.
Image source: Getty Images.
Source Fool.com
