Where Will Zoom Video Communications Be in 3 Years?
Zoom Video Communications (NASDAQ: ZM) has gone on a wild ride since its IPO in April 2019. The video conferencing company went public at $36 per share, and its shares started trading at $65 on the first day.
Zoom's stock subsequently skyrocketed in 2020 as its brand became synonymous with video calls throughout the pandemic, and its shares hit an all-time high of $588.84 that October. That rally briefly boosted Zoom's market cap to $162 billion -- more than 60 times the revenue it would generate in fiscal 2021 (which ended in Jan. 2021). That nosebleed valuation was unsustainable, and Zoom's stock eventually tumbled back to the low $170s.
Zoom has still generated impressive gains for investors who bought the stock nearly three years ago. However, it also burned a lot of latecomers, with a decline of roughly 50% over the past 12 months. Could Zoom's stock rebound over the next three years and hit fresh highs again?
Source Fool.com
