Out Fox The $treet

  Zoom beat FQ2'22 analyst targets, but the size of quarterly beats continues to trend downwards. The company forecast FQ3'22 revenues to decline sequentially in further signs of a slowdown in business. The stock headed into the quarter trading at 20x forward sales while the future growth rates don't warrant this valuation. Looking for more investing ideas like this one? Get them exclusively at Out Fox The Street.  Learn More » A lot of individual investors didn't want to listen, but  Zoom Video  Communications  ( ZM ) faced nearly impossible comps due to pulled  forward  demand. In  addition, the recent deal to acquire  Five9  ( FIVN ) is exactly what companies do in order to replace stalling growth. My  investment thesis  remains very Bearish on the stock not correctly priced for the new normalized, post- Covid  phase. Read the full article on Seeking Alpha.  Disclosure: No position mentioned. Please review the dis...

  Zoom agreed to buy Five9 for $14.7 billion, or ~20x forward revenues. The cloud video communications stock is facing a tough year as enterprises return to the office and forecasted growth slows to below 20x. The stock shouldn't trade at more than 10x forward revenues. Looking for more investing ideas like this one? Get them exclusively at Out Fox The Street.  Learn More » The biggest worry with tech stocks that benefitted from the COVID-19 lockdowns was a normalization of business activity leading to a reduction in growth rates going forward. Zoom Video  (NASDAQ: ZM )  is a prime technology provider that blossomed in 2020 and faces tough growth comps going forward. The company made what appears a desperate move to acquire growth via the expensive deal to buy Five9  (NASDAQ: FIVN ) . My  investment thesis  remains bearish on the stock. Read the full article on Seeking Alpha.  Disclosure: No position mentioned. Please review the disclaimer page f...