According to Humanitarian China, Zoom also shut down the account of Lee Cheuk-yan, chairman of the Hong Kong-based rights organization Hong Kong Alliance, as well as the account of Wang Dan, one of the student leaders of the pro-democracy movement. Because of all the media attention, Zoom finally admitted it did so at the request of the Chinese government. Since the pandemic compelled us to stay home, Zoom meetings, happy hours, and even parties have become an integral part of our lives.

Even Queen Elizabeth II made her first appearance on Zoom recently to chat with a group of British health-care workers. It turns out, however, that Zoom allows itself to access unencrypted video and audio from meetings.

The company mines files and messages shared in Zoom meetings for its targeted advertising. Users should beware that Zoom does not support end-to-end encryption for video and audio content the way we commonly understand. Zoom CEO Eric Yuan also clarified in early June that the company does not provide end-to-end encryption for free calls. Zoom is headquartered in the United States, but its business operation heavily relies on China.

In its Securities and Exchange Commission filings , Zoom acknowledged that it operates research and development centers in China and employed more than Chinese workers as of Jan.

Since Yuan emigrated from China, he has been instrumental in recruiting research and development talent in China, where labor costs about a third of what it would in the United States. This hiring of cheap labor ensures Zoom is one of the few high-flying tech companies that is profitable, but it also could expose Zoom to security risks. Citizen Lab found that Zoom routed some calls made in North America to communist China, along with encryption keys used to secure those calls.

This is deeply concerning, given that users share sensitive information, including business intelligence, health-care data, and government policies over Zoom. The data collected from Zoom meetings is a gold mine for cyber thieves and spies. Authorities can also legally conduct remote surveillance of these companies and their facilities. The truth is, Chinese authorities already compelled companies to share their data with the government long before this new cybersecurity law.

Should the Chinese authorities demand that Zoom hand over meeting data and encryption keys, the company is in no position to decline. The recent incident of the temporary termination of U. Zoom is easy to navigate and helps keep many of us productive while we work from home. Almost all universities in the United States are using Zoom to teach online classes. Still, we must recognize the limitation of this technology and the security and privacy issues it presents.

For this reason, I’d be reluctant to count Zoom stock out on valuation concerns alone. Cost basis and return based on previous market day close. Calculated by average return of all stock recommendations since inception of the Stock Advisor service in February of Discounted offers are only available to new members.

Calculated by Time-Weighted Return since Volatility profiles based on trailing-three-year calculations of the standard deviation of service investment returns. Invest better with The Motley Fool. Get stock recommendations, portfolio guidance, and more from The Motley Fool’s premium services. Premium Services. Stock Advisor. View Our Services. Our Purpose:. Latest Stock Picks. Today’s Change. Current Price. Revenue growth is expected to start slowing down, which has some investors bailing on this market-crushing investment.

So what Zoom’s fiscal calendar doesn’t line up with traditional calendars; it just reported results for the fiscal third quarter of , covering the beginning of August through the end of October.

Image source: Getty Images. Zoom Video Communications. Motley Fool Returns Market-beating stocks from our award-winning service. Stock Advisor Returns. Join Stock Advisor.

Why zoom stock went down today – none: –

 
Zoom is now projecting revenue of $ billion to $ billion, with non-GAAP Shares were down 1% in after hours trading Monday. Zoom shares closed at an all time high of $ on October 12, The stock is down 50% year-to-date. Zoom Video Communications, Inc. (ZM).

Why zoom stock went down today – none:

There’s a tremendous amount of risk in this, of course, because if Zoom misses numbers or gives poor guidance, the stock is likely to get crushed. There have been plenty of stocks that have been obliterated in recent weeks following poor results. Even the mega-caps like Amazon have fallen victim to this, and more recently, staples like Walmart and Target have seen very sharp declines. A stock like Zoom would likely feel an even more significant impact from disappointing results.

Zoom has fallen a lot, and as long as there are no surprises from Zoom’s management team, then the technicals and the options seem to suggest an upside opportunity is present, while valuations seem fairly valued currently. Investing today is more complex than ever. With stocks rising and falling on very little news while doing the opposite of what seems logical.

Reading the Markets helps readers cut through all the noise delivering stock ideas and market updates, looking for opportunities. We use a repeated and detailed process of watching the fundamental trends, technical charts, and options trading data. The process helps isolate and determine where a stock, sector, or market may be heading over various time frames. Mott Capital Management writes short-to-medium-term focused articles on where stocks may go. We do not write articles on investing for the long-term.

This provides a real opening for investors. The modern EV industry is young, and provides investors with an array o. Although big drops in the stock market can be unnerving and tug on investors’ emotions, they’re also, historically, an excellent time to put your money to work. Corrections and bear markets tend to run their course relatively quickly, and all notable declines throughout history have eventually been erased by a bull market rally.

The metaverse offers added opportunities for a variety of tech stocks. A decent dividend plus a bargain price adds up to an incredible opportunity for investors to consider.

These innovative growth stocks have the potential to lead investors to financial independence in less than two decades. Within the next 15 years, people 65 or older are expected outnumber those under 18, for the first time in U. Meanwhile, the Federal Reserve enters a blackout period before its next policy-setting meeting later this month.

You can guess why Boeing shares struggled as much as they did last month While the aircraft manufacturer seems to have fully addressed all of its issues with the MAX, airlines remain a bit hesitant to commit to new plane purchases, while Boeing itself is still playing catch-up. Buying a stock is easy, but buying the right stock without a time-tested strategy is incredibly hard. So what are the best stocks to buy now or put on a watchlist?

The teams at Coatue Management, Citi, and Piper Sandler have all either cut their price target or dropped their rating on the stock in recent weeks. The bulls might call this the final capitulation that we’ll look back on in the months to come, and they actually mightn’t be all that wrong. In reality, how much more downside can be priced into Zoom shares?

Few could call their shares expensive down here, especially as they’re now back at their pre-pandemic levels. Shares have been hurt badly by the rising interest rate environment they find themselves in, and investors haven’t been this averse to paying for longer term growth stories for many years. But there is a future ahead of Zoom, and at some point you have to be thinking their fortunes will turn around.

Aside from last October, they’ve had 11 red months in a row, but are currently outperforming the wider market in recent weeks. In particular, this expense is dependent on the price of our common stock and other factors that are beyond our control and do not correlate to the operation of the business. Zoom views acquisition-related expenses when applicable, such as amortization of acquired intangible assets, transaction costs, and acquisition-related retention payments that are directly related to business combinations as events that are not necessarily reflective of operational performance during a period.

Zoom excludes significant litigation settlements, net of amounts covered by insurance, that we deem not to be in the ordinary course of our business. In particular, Zoom believes the consideration of measures that exclude such expenses can assist in the comparison of operational performance in different periods which may or may not include such expenses and assist in the comparison with the results of other companies in the industry.

Zoom defines non-GAAP net income and non-GAAP net income per share, basic and diluted, as GAAP net income attributable to common stockholders and GAAP net income per share attributable to common stockholders, basic and diluted, respectively, adjusted to exclude stock-based compensation expense and related payroll taxes, expenses related to charitable donation of common stock, acquisition-related expenses, gains on strategic investments, litigation settlements, net, income tax benefits from discrete activities, and undistributed earnings attributable to participating securities.

Zoom excludes gains on strategic investments, net because given the size and volatility in the ongoing adjustments to the valuation of our strategic investments, we believe that excluding these gains or losses facilitates a more meaningful evaluation of our operational performance.

Zoom excludes income tax benefits from discrete activities, including the income tax benefit related to the release of the US federal and state valuation allowance, because of their nonrecurring nature. Zoom defines free cash flow as GAAP net cash provided by operating activities less purchases of property and equipment. Zoom defines adjusted FCF as free cash flow plus litigation settlement payments, net. Zoom adds back litigation settlement payments, net because they are not part of Zoom’s ongoing operating activities, and the consideration of measures that exclude such payments can assist in the comparison of cash generated from operations in different periods which may or may not include such payments and assist in the comparison with the results of other companies in the industry.

Zoom considers free cash flow and adjusted free cash flow to be liquidity measures that provide useful information to management and investors regarding net cash provided by operating activities and cash used for investments in property and equipment required to maintain and grow the business.

Zoom defines a customer as a separate and distinct buying entity, which can be a single paid host or an organization of any size including a distinct unit of an organization that has multiple paid hosts. Zoom defines ARR as the annualized revenue run rate of subscription agreements from all customers at a point in time. For the trailing 12 months calculation, Zoom takes an average of the net dollar expansion rate over the trailing 12 months.

Zoom Video Communications, Inc. Consolidated Balance Sheets Unaudited, in thousands. Consolidated Statements of Operations Unaudited, in thousands, except share and per share amounts. Consolidated Statements of Cash Flows Unaudited, in thousands.

Skip to main navigation. February 28, PDF Version. For the fourth quarter, GAAP operating margin was Again, the trend here reflects higher investment spending with a lower operating margin. If anything, the recent financials are strong enough to brush away fears of an unraveling operating environment or any concerns that customers were abandoning the platform.

The context here also considers the broader market trading action with stocks and tech names getting a bounce in recent weeks against what has been extreme volatility all year.

Seeking Alpha. There’s a lot of ground to cover before really making a dent on year-over-year losses, but there is a sense that the sentiment has turned more positive. At the macro level, commentary from U. There are also some signs that inflation could be peaking, opening the door for flexibility in monetary policy through Simply put, from the doom and gloom scenarios that dominated headlines for much of the year, the narrative is starting to change and ZM can benefit from that simply through market beta over the near term.

The longer-term question for Zoom is more complicated. This is a company that in the span of just a few years has become a household name revolutionizing the way business and online communications are done online. At the same time, the next stage of growth is going to depend on a new driver and business line.

The bet the company is making is that it can leverage its success in the video communications platform with the ancillary business services like contact center and even areas like customer experience with the Solvvy acquisition.

Our take is that the company has not yet shown how successful those initiatives can be.