Should You Buy Zoom Stock Now That It Is at a Fraction of Its All Time High?
Zoom stock has been dropping for a while and is at a low point that makes it a tantalizing buy for investors who believe in its AI plans.
Zoom (ZM) is priced at $61.35 a share, which is about 90% below its all-time high of $559 from 2020.
Does that make it a good investment now, with potential for investors to make back their money with a huge profit margin in the future? Or is it likely that Zoom will stay down and struggle to make any money for its shareholders for the foreseeable future?
The stock has been in decline since March 12th, losing about 11.6% in that period. This places it at the lowest the share price has been since late 2023. When Zoom hit that low point of $59,20 in September of 2023, the stock price then shot up to $73 in about a month and a half.
Could we see a repeat of that action as Zoom is once again at a dangerously low point?
What We Expect for Zoom
Zoom is a business collaboration platform, offering video chat primarily, and its services proved invaluable during the coronavirus lockdowns. At that time, many businesses started to use Zoom for meetings rather than getting together in person. Even school systems around the globe chose to participate in Zoom meetings rather than meet personally together in classrooms.
Since long-distance meetings have no longer become the norm, Zoom has become less and less useful. That may erase any hope that investors have that Zoom could revive itself and prove to be a powerful contender in the business world and the stock market once again.
However, the company is dipping its toes into the AI waters, trying to offer improved services. They plan to use AI to automate customer service activity, cutting down substantially on employee costs. That could help their bottom line dramatically and allow them to have a very profitable next quarter. This is why we suggest giving this stock a shot right now. They are positioned for decent growth, but probably not exponential growth, in the next quarter or two, and the stock is priced very temptingly at the moment.
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