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On February 9, 2021, Farmer.mCakarthi, one of his goats for a zoom in at the Cronkshaw Fold Farm in north-west England.
By Paul Ellis / AFP Getty Images
Zoom Video Communications
The company has returned early gains to the stock amid ongoing concerns about both the valuation and the company’s subsequent epidemic growth rate since the January quarter earnings report.
Zoom, a major beneficiary of the housework and domestic trend during the Covid-19 epidemic, reported આવક 5.5 million in revenue, an increase of 36% over the previous year, with adjustment earnings of $ 5.4 million a year. 22 1.22 One share.
Shares of Zoom rallied as much as 10% after Monday’s trading and opened sharply higher on Tuesday. However, despite the generally provocative street commentary, the benefits have diminished. The stock traded at 4 440 at the start of the session on Tuesday, down 7.4% to 9 379.22 in recent trading.
The decline is likely to occur for two reasons. For one, Zoom’s surprising string of three-digit-growth quarters seems to be coming to an end, as it now faces more than a year of covid-inflated years. And two, even after returning from previous highs, the stock continues to trade at a higher multiplication of sales and earnings.
JPMorgan analyst Sterling uty TA on Tuesday reiterated its neutral rating on Zoom stock, raising its price target from $ 450 to 45 6,456, but their subsequent earnings research note warns that this could be the “last hurray” based on the company’s stunning covid. . Run.
He writes, “The ramp is starting to be in a tight comparison in the April quarter and investors will continue to discuss what the post-epidemic growth rate for Zoom will look like on this scale. “The market still has tremendous growth potential in both the international and zoom phone segments, but the question will be the rate and pace of post-epidemic epidemics.”
Zoom is showing revenue of 900 900 million to 90 905 million in the April quarter, with a non-GAP profit of 95-99 cents per share. Street is projecting આવક 804.8 million in revenue and 72 cents a share of non-GAAP profit.
UtyT also sees the risk in the fact that accounts under 10 employees account for 37% of revenue. “We believe that this customer base could pose a risk to Rath Manthan going forward. If a vaccine becomes widely available, it is likely to have an impact.”
Citi’s Tyler Redk created stock coverage on Tuesday with a neutral rating and a ભાવ 501 target price. “While the annual guidance was beyond expectations … we are concerned that a significant decline in growth during the year could weigh on the stock, especially as new product growth drivers are too low to move the needle,” he writes in the research note.
In fiscal year 2022, Zoom $ .76. It expects revenue of 7 .7878 billion to થી 1.7878 billion, an increase of 3% over the middle of last year, with non-GAAP earnings of .5 65.6565 to G.5959. Street previously had revenue of અ 22.2 billion in the fiscal year January 2022. Dollar shares are presenting with non-GAAP profits.
Radke’s interpretation of the guidance for the year is that growth will come in the second quarter between a very difficult comparison between about 175% in the April quarter to lower adolescents.
Piper Sandler analyst James Fish, on the other hand, responded to the 54 541 earnings report by raising its rating to overweight with a new price target of 50 501. “Previously, valuations and commercial monthly payments kept us on the sidelines of exposure to customers,” he writes in a research note. “While the latter did not respond to concerns in the quarter itself, the lead metrics suggest enterprise and annual / multi-year customers to move forward with more digestible appraisal visibility.”
Oppenheimer analyst Ittai Kidron liked the quarter, and he sees opportunities for the company to expand its reach into new areas. “Zoom continues to show how complex it is in the digital world; We believe its relevance will be higher after Covid-19, “he writes. But the stock’s valuation – 25 times its estimate for 2022 sales – gives it a break, and it maintains its performance rating.
Eric J. Write to Switz at [email protected]
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