Zoom Has Handed Back Most of Its Pandemic Gains but Is Still Making Money – What Investors Need to Know for 2023

By TradeSmith Editorial Staff

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In the early conference-call days of COVID-19, when pajamas were the dress code and we became hyperaware of the books arranged on the shelf behind us, Zoom Video Communications Inc. (ZM) was king.

To keep offices connected, everyone was using the video conferencing platform, with the name of the company becoming synonymous with setting up a video meeting: “Let’s do a Zoom.”

The stock price opened at $68.80 on Jan. 2, 2020, and skyrocketed to $588.84 by Oct. 19 — a 755% gain in just nine months.

But fast forward to today and Zoom has given back practically all of those gains, trading at $74.11 as of this writing.

More people are returning to the office in 2022 — as many as 49% of remote employees, according to Zippia.com — and may have less of a need for videoconferencing.

There’s also more competition squaring off against Zoom, with Microsoft Teams growing in popularity along with offerings from RingCentral — and at least one other major player discussed in the video below.

Despite all of this, Zoom is still a profitable business. As of September, the company converted 35% of its revenue into free cash flow over the past year and was sitting on $5.5 billion in cash, with virtually no debt.

So, is there more to Zoom than meets the eye heading into 2023?

Is it an underrated pick to add to your moneymaking watchlist?

LikeFolio co-founder Landon Swan has some perspective.

In less than nine minutes, Landon reveals what happens when a company is on the “other side” of being first to market and what you need to know about Zoom heading into the new year.

You can click here or on the image below to access Landon’s invaluable insight: