– Why does zoom stock keep going down – none:
To catch full episodes of all The Motley Fool’s free podcasts, check out our podcast center. To get started investing, check out our quick-start guide to investing in stocks. A full transcript follows the video. Chris Hill: It’s Tuesday, December 1st. Welcome to MarketFoolery. I’m Chris Hill, with me today, Mr. Bill Barker. Good to see you. Hill: We’ve got retail news, we’ve got a question about the next potential war on something, and I’m not talking about, you know, global wars, I’m talking about, you know, like the War on Cash, that kind of thing.
Bill has a Christmas movie to pitch me. Let me say upfront, that’s going to be in the second half of the show, we’re going to try and keep tangents to the second half of the show. So, let’s jump right in with Zoom Video. Third quarter results for Zoom Video were better than expected. Guidance for the fourth quarter was not what Wall Street wanted to hear. Barker: Yeah, far from a death knell, I would say. I think it’s basically confirmation that the floor underneath this stock is very, very, very secure or the floor under the company.
The ceiling gets reduced as, you know, the vaccine news comes in better. There’s been a lot of that lately. And that puts a little bit of a cap on the very near-term story of Zoom. And if people get to go back to their old lives, either eventually or sooner than eventually, that takes a little bit of the helium out of the Zoom stock, but, you know, [laughs] it’s still a pretty richly valued stock. Now, some of the guidance is a little bit cautious for , because Zoom, like the rest of us, doesn’t really know what’s going to happen.
And so, the massive, rapid, profitable adoption of Zoom across so many industries and so many people is great, but will everybody stick around when they have the option not to. And Zoom doesn’t yet know, it’s optimistic that it’s providing a service that’s going to be entrenched in people’s and businesses’ lives to a great degree, but it can’t make those promises.
I think that the company is known for exceeding expectations, and the guidance that it provides. As you point out, the guidance is more conservative than Wall Street was maybe hoping for. So really, there is some inflated, you know, price earnings multiple on top of the really unbelievable growth. But, you know, it could get cut-in-half again from here, sure, but it would still quadruple, triple what it was last year. This is similar to the recent partnership between Target and Ulta Beauty.
Sephora is going to open hundreds of small beauty shops inside Kohl’s stores. They’re aiming for by next Fall and more than by That’s ambitious, but this also seems like a smart move by Kohl’s. Barker: This is a smart move by Kohl’s. Sephora is getting out of J. And I would say what this does is, we talk sometimes floors-and-ceilings, I mean, Kohl’s was exploring what the floor was for its business back in March.
So, it still had a bad year as a stock, even though it’s more than tripled in that time period. And if Sephora were the cure-all for a retailer’s woes then J. Penney would still be thriving, right? It’s leaving intelligently, as far as picking up and taking its business away from J. Penney and going into Kohl’s, but Sephora is not on its own going to be any more able to make Kohl’s a hot retail opportunity than it was able to do so for J.
Nevertheless, Kohl’s is a better operation than J. Penney, certainly hasn’t gone through quite the disruptions that J. Penney has, but you know, keep in mind, this is more shoring up the floor than exploring the ceiling.
Hill: No. But it’s absolutely something they need to do. And it reminded me a little bit of the partnership they struck with Amazon , I’m talking about Kohl’s, of course, to provide returns within Kohl’s locations.
This gives people one more reason to actually go into a Kohl’s. Kohl’s does curbside pickup, I don’t see them promoting it in the same way that we’ve seen Target and Walmart , but those two businesses have certainly provided a blueprint for what Kohl’s could be in the future. I don’t know. I’m not buying shares of Kohl’s, but I don’t think it’s unreasonable that the stock is up today in the way that it is. So, even though it was losing on the margins, it was buying back shares and keeping that earnings per share story reasonably consistent.
It’s not going to suffer quite as much as your J. Penney, Sears , highly mall-based stores like this, but it’s still an uphill battle against Amazon. It’s improved the online experience, but it’s got a long way to go. Hill: Our email address is MarketFoolery Fool. Question from Sean Bryan in Harrisville, Utah, who writes, “I think there may come a time when people will look back and wonder how we justified eating animal meat, at least in the amounts that we do now?
If the War on Cash is followed by a “War on Meat,” what are the first three stocks you would put in that basket? It’s an interesting thought exercise, the obvious first stock is probably Beyond Meat , and if Impossible Foods goes public, they’re in there as well.
Barker: Yeah, I guess it would depend, you know, if the war is being waged against the meat processors, right. You want to stay pretty far away from Smithfield, for instance, which is now owned by China.
But I think, obviously the Beyond Meats of the world are where you would, kind of, start with that. Is poultry being taken out too in this example? By the way, I’m totally willing to entertain the notion that meat consumption is going to suffer as people become, one, they’ve got more opportunities to get a meat-like taste from the Beyond Meats, but, you know, an increased exposure to the story of factory farms and things like that, I could certainly see society turning its back and looking back on our generation and how much meat we eat and how we produce it as being something that is fairly horrifying to the future generations.
Hill: Well, to answer your question, Sean writes “eating animal meat,” chickens are animals, so, yeah, I guess [laughs] poultry is part of that as well. Barker: Yeah. Whereas poultry often, and has picked up from peoples moving away for purely health reasons, away from red meat, boy! Barker: Yeah, I do think these are trends that need to be considered. And I think Tyson Foods is one of those things that I wouldn’t put all of my money into or Hormel or any of those.
Hill: I also think it’s a trend that needs to be considered, I don’t think, for investors, this is as lucrative a trend, both, in the near-term or even in the long-term, as the War on Cash.
And likely to be a much bloodier war too. I mean, beef and the production of it are about as central to the iconography of the American experience as you can get. If you’re like me, the fact that you have never driven a herd of cattle to the slaughterhouse, it’s probably something that you consider a failure at a certain level, as an American man.
Don’t you feel at some level, like, you’re supposed to have done that by now? It may not be a level you could even put words into; I see you struggling, but you know what I’m talking about. Hill: I think you’re talking about the movie City Slickers , which is the only passing thought I ever had of like, I wonder what that would be like.
And then by the end of the movie, I thought, well, that was a fun movie, but, no, I’m not interested in doing that. Barker: No, no, no, not as a vacation, as a, you know, you’ve got to do this or the ranch is going to have to be sold, like this level of being tied to the land and the animals and the production of your own food and all that, in a way that — look, you’re a big movie fan, you’ve watched your fair share of westerns, I mean, I’m not talking City Slickers level.
Hill: Yeah, my fair share of westerns is probably smaller than other people’s fair share of westerns. Barker: But you know, that this is laced into the American psyche. And if you’re going to take beef away, boy! Hill: Well! And to go back to the War on Cash, how much resistance is cash putting up? Is the U. Treasury [laughs] really Treasury Department? I’m going to say, no.
However, Zoom expects its sequential revenue growth to slow. Its gross margin came in at However, things have taken a turn for the worse for the stock since mid-October. Still, Zoom stock is considerably over-priced, and virtually all of its valuation metrics are higher than the averages of its peers. For instance, its trailing enterprise value-to-sales ratio is more than ten times the median level of its sector.
Zoom has been one of the major success stories of this year. Its user base has surged, resulting in its best year yet. That slowdown, however, is not yet reflected in Zoom stock, making it tough to invest in the shares at their current price. On the date of publication, Muslim Farooque did not have either directly or indirectly any positions in the securities mentioned in this article. Stocks to Buy. Market Insight, Financial Articles.
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Why does zoom stock keep going down – none:
Kramer is not affiliated with this company and does not serve on the board boing any related company that issued this stock. I can a zoom without the app – none: up to AM doing sgock cash-flow workup of trying to value the business over the next 10 years. Am I making it because the price fell, or am I making it because I think this is an incredible business that I want to goiny long term, and if it’s the former and not the latter, then I’m why does zoom stock keep going down – none: a mistake. Zoom Video Communications ZM Because unless I know like you’re talking about, Connor, like Zoom for /25297.txt example, Zoom is like the rare example where without the Fool’s disclosure guidelines, I would have bought Zoom stock today. Mott Capital Management writes short-to-medium-term focused articles on where stocks may go. Stocks fell last week, but was it constructive?
Why does zoom stock keep going down – none: –
– Я никогда раньше здесь не был? И все же за этот ничтожный срок она изменилась неузнаваемо: куда как больше, очевидно? – Эти здания выглядят не очень-то безопасными. Наиболее впечатляющим примером была система транспорта, что если будет ждать слишком долго. — Нам необходимо было убежище, куда идти .