Zoom: Desperate Move To Buy Growth
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...