Is Zoom Video Communications Stock a Buy?
Zoom Video Communications (NASDAQ: ZM) delivered exceptional performance during its fiscal first quarter. In addition, management raised its full-year guidance substantially despite claiming a conservative approach. As the stock price reached its all-time high following these outstanding results, should investors buy Zoom stock?
Given that Zoom's stock price had more than tripled since the beginning of the year, there's no doubt the market was expecting the video specialist to show strong first-quarter results. Also, the company communicated in April that its number of daily meeting participants exceeded 300 million, up from 10 million in December, as many people have been using video communications while staying home to try to limit the spread of COVID-19.
But the magnitude of the first-quarter overperformance remains stunning. Revenue grew 169% year over year, and all metrics far exceeded management's guidance communicated at the beginning of March.
Source Fool.com
