Zoom (NASDAQ: ZM) stock is far below the highs it set back during the pandemic when people across the world were depending on its video communication platform to replace in-person meetings. Shares are underperforming in 2023, as well, sitting out the rally that has pushed many other tech stocks higher this year.
There are some good reasons for investors to be cautious about Zoom, after all, since its growth prospects aren't as bright as they had been a few years ago. Still, the business is profitable and could see accelerating sales gains over the next few years in its enterprise division. With those big-picture factors in mind let's look at whether the stock is a buy right now.
Yes, Zoom's latest growth results have been lackluster. Sales only rose 5% in the Q1 selling period that ran through late April. Yet look closer and you'll see a big difference between its two main business lines. The online segment, which is made up of the type of accounts that boomed during the pandemic, declined 8% this past quarter. The good news is that this business is finally stabilizing after over a year of big declines.
Source Fool.com