Zoom Video Communications Still Offers Strong Potential Sitting Just Above Its 52-Week Low
Zoom Video Communications' (NASDAQ: ZM) stock has been out of favor in this post-pandemic economy. The combination punches of demand falling off a cliff as the economy reopened, intensifying competition, and inflation (and with it, rising interest rates) hit the company hard, reducing investors' appetite for the stock.
The company is sitting only 9% above its 52-week low of $63.55, which it had dropped to on Dec. 27, 2022, and shareholders are thoroughly demoralized from the stock's precipitous drop over the last three years. So should you invest in the stock with so much pessimism surrounding Zoom?
With the stock zooming approximately 831% to an all-time high of $568.34 on Oct. 19, 2020, Zoom was one of the biggest market darlings during the pandemic. However, the stock turned into a pumpkin after the market first saw the extent of the company's severe loss of demand.
Source Fool.com
