In the constant Wall Street battle between pessimists and optimists, the bears have the upper hand on Zoom Video Communications (NASDAQ: ZM) stock today. The software company's shares have dropped over 70% since 2021, when its platform was the No. 1 choice for millions of people conducting meetings during pandemic-fueled social restrictions. The stock is underperforming through the market rally this year as well.
Yet Zoom's business is still setting sales records even if growth is occurring at a much slower pace these days. And its financial position is strong with the bottom line and cash flow both positive through mid-2023. Let's take a look at whether those encouraging factors puncture a hole in the bearish thesis for this formerly high-flying growth stock.
Zoom is targeting nearly $5 billion of annual sales this year, which is many multiples of its pre-pandemic total of $700 million. Bears believe those high-growth days are long gone, given that revenue will barely rise in 2023. Most Wall Street pros are projecting just 4% gains next year, too.
Source Fool.com