Better Buy: Facebook vs. Zoom Video Communications

Last April, Facebook (NASDAQ: FB) introduced Messenger Rooms, which provided free video calls for up to 50 people at once, to keep pace with Zoom Video Communications (NASDAQ: ZM) during the pandemic.

Zoom's stock price initially dipped after Facebook's move, but it quickly recovered and remains up nearly 300% over the past 12 months. Facebook's stock only rose about 20% during the same period, as ongoing concerns about its core advertising business kept the bulls at bay.

But after the pandemic passes and more people return to work and school, Zoom could struggle to maintain its momentum as more investors recognize Facebook's fundamental strengths again. Will Facebook make a comeback and outperform Zoom this year, or are the social networking giant's weaknesses too glaring to ignore?

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Source Fool.com