Why Zoom Video Communications Stock Fell 10% Last Month
Shares of communications technology company Zoom Video Communications (NASDAQ: ZM) fell 10.2% in January, according to data provided by S&P Global Market Intelligence. There was little news to speak of during the month. However, CFO Kelly Steckelberg spoke at the 26th annual Needham Growth Conference on Jan. 11. And the talk did little to inspire investors.
I believe it's important to frame this by pointing out Zoom's resilience. Few businesses have ever grown as fast as Zoom did during the pandemic. The company has retained all of this business, with trailing-12-month revenue still at an all-time high. That's impressive. But investors want to see ongoing profitable growth, which is currently lacking.
Steckelberg highlighted tons of things that Zoom is working on. However, it's possible that investors foresee ongoing tepid financial results after listening to the talk.
Source Fool.com
