Is Zoom Stock Really Going 2,000% Higher Over the Next 3 Years?
Investors may understandably feel confused about what to make of Zoom Video Communications (NASDAQ: ZM) stock. Investors ran up Zoom stock during the pandemic peak and then sold it off. After several periods of buying and selling, it trades at an 88% discount to its all-time high at the time of this writing.
The confusion comes in as innovation-focused fund manager Cathie Wood and her team at Ark Invest forecast a $1,500 per share price target for Zoom in 2026. That amounts to around a 2,000% increase over that time frame. But even their bear case outlook of $700 per share would amount to a 900% rise over that time. The question for investors is whether Wood and her team have set unrealistic expectations or whether Zoom can meet that target.
Zoom's recent performance indicates a low likelihood of it hitting a $1,500 per share price anytime soon. The company grew rapidly during the height of the pandemic as individuals and businesses turned to its platform to communicate amid lockdowns and social distancing.
Source Fool.com
