So is the fact that analysts expect 24% growth in 2022, to $4.3 billion. But another year of 35% growth? Now that’s impressive. At the very least, flat growth would be tolerated by many investors. One would expect that after such a powerful year, a regular company would see a retreat in growth.
Particularly given the fact that, should Zoom deliver $3.5 billion in revenue in 2021, that would represent more than 35% growth from 2020, a year where revenue exploded more than 250%. That’s stretched, but not impossible to maintain or justify. At its current valuation – $110 billion – ZM stock trades at about 31 times revenue.
At its recent low in January, it was just below $100 billion.Ĭurrent estimates call for $3.5 billion in revenue in 2021. Near its highs, Zoom commanded a market capitalization just above $150 billion. When we see these 40% dips in names we really like, it gives us an opportunity to initiate a position for those that we missed the boat on – this is our ticket.Īt $550-plus, ZM stock wasn’t a bad company, but it did have a high valuation. That’s what creates opportunities for long-term investors. While the stock price fluctuates wildly, the business tends to be more steady. However, when we get a dip of this magnitude and the business is strong, the stock is worth a second look. 7 Growth Stocks That Won’t Be Stopped in 2021įurther, there could be years where a stock doesn’t fall by 30%, let alone 40%.It’s all dependent on what’s going on around it and what’s happening in the market. The 40% discount is not a fool-proof algorithm or some magic line in the sand. From time to time though, we get these amazing pullbacks. As nice as it is for every stock to go up forever, that’s not reality. 19, ZM stock rallied 763%.Ĭurrently, shares are down 35% from that high and at the recent low, the stock was down almost 44%. From the start of 2020 to its high on Oct. In the process, it sent Zoom shares rocketing. Then the novel coronavirus pandemic sent the world into a frenzy. Shares came into 2020 off the highs but holding up. ZM stock went public in April 2019 and was met with a lot of optimism.
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