Zoom Beat Earnings Expectations, But Here's Why I Still Wouldn't Buy the Stock
If there's one stock I never fully understood the hype behind, it's Zoom Video Communications (NASDAQ: ZM). Videoconferencing was not a new phenomenon in 2020 by any means, but at the outbreak of the pandemic, Zoom's stock surged in value. Granted, it has an easy-to-use app for videoconferencing, but for that to drive the company to a market cap of around $160 billion is incomprehensible to me.
The company beat earnings expectations last quarter, but that's hardly anything to get excited about. Despite its fall from grace over the past few years, Zoom is still a risky stock and one that you should think twice about owning.
When Zoom reported earnings in February, the big news was its massive earnings beat, with adjusted earnings per share (EPS) of $1.22 for the period ending Jan. 31 soundly beating analyst expectations, which called for an adjusted EPS of only $0.81.
Source Fool.com
