Zoom Video Communications Inc.’s stock is currently trading at a discount to the S&P 500
ZM,
minus 1.20 percent
In afternoon trading on Thursday, the stock dropped 0.9 percent, bringing its seven-day losing streak to 10.7 percent. Benchmark analyst Matthew Harrigan gave the videoconferencing company a hold recommendation, noting that current stock pricing “already suggest explosive growth” in the company’s total addressable market (TAM) and unified communications as a service (UCaaS) market share. The stock is up 5.9% year to date, after skyrocketing 396 percent in 2020 as the COVID-19 pandemic-induced work-from-home trend helped the corporation. The S&P 500, on the other hand, has risen 15.9% this year after surging 16.3% last year. Harrigan admitted that the company “could defy naysayers” by increasing market share as it expands its operations with the increasingly popular Zoom Phone. In a message to clients, Harrigan said, “immediate stock action rests on momentum and sentiment, with consensus forecasts and even guidance providing a flimsy valuation backbone.”/n
