Zoom has become synonymous with our everyday lives that it has become a verb.
You don’t use a video conferencing platform; you Zoom.
Its usage has been accelerated with the COVID-19 pandemic gripping the world.
But Zoom seems to be a victim of its own success, if its short-term stock price movement is anything to go by.
On Tuesday’s trade in the US, Zoom Video Communications Inc (NASDAQ: ZM) shares plunged close to 17%, bringing its past six months share price performance to -22%.
Source: Google Finance
If you are wondering what could have caused Zoom’s stock to crash and if it presents a buying opportunity as a long-term investor, you have come to the right place!
What Happened to Zoom?
Zoom reported its financial results for the fiscal second quarter ended 31 July 2021 (Q2 FY22) earlier this week.
For the latest period, Zoom’s total revenue grew 54% year-on-year to US$1.02 billion, its first billion-dollar quarter....