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Zoom Video Comms - Government Trades

Zoom Video Comms

Zoom Video Communications provides a communications platform that connects people through video, voice, chat, and content sharing. The company's cloud-native platform enables face-to-face video and connects users across various devices and locations in a single meeting. Zoom, which was founded in 2011 and is headquartered in San Jose, California, serves companies of all sizes from all industries around the world.

Zoom Video Communications


	Zoom Video Communications Inc (NASDAQ: ZM), the company behind the popular Zoom platform, went public in April 2019, raising $357M.
	During the height of the COVID-19 pandemic, Zoom became a superstar, with its stock value soaring by almost 900% in a single year.


The Rise and Fall of Zoom: How Security Issues Affected the Pandemic&#39;s Superstar

Cathie Wood, founder of Ark Invest.

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Zoom Video Communications, Inc. - Class A Common Stock

Zoom Video Communications Inc

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ZoomAway Technologies Inc

<ul>
<li>Zoom Video Communications Inc&nbsp;(NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/zm#NASDAQ">ZM</a>), the company behind the popular Zoom platform, went public in April 2019, raising $357M.</li>
<li>During the height of the COVID-19 pandemic, Zoom became a superstar, with its stock value soaring by almost 900% in a single year.</li>
<li>However, in 2020, the FBI, Google, and SpaceX raised concerns about Zoom&#39;s encryption practices.</li>
<li>Following the news about their encryption practices, Zoom&#39;s stock price dropped to $150, and they faced a lawsuit from investors.</li>
<li>In October 2023, Zoom reached a settlement with shareholders to pay $150M to affected investors. All affected investors can file a claim to receive the payment.</li>
<li>After resolving all the lawsuits, the main question remains: can Zoom become competitive enough to challenge major companies like Microsoft and Google? Will it regain trust not only among consumers but also investors in a privacy-obsessed world? &nbsp;</li>
</ul>
<h4>Zoom&rsquo;s Journey: Rise and Fall&nbsp;</h4>
Zoom stock&rsquo;s stellar performance in 2020 largely erased the volatility associated with the security flaws. However, shareholders who invested in the company at its IPO had to deal with substantial volatility associated with security incidents. For example, during the week ending April 3, 2020, Zoom stock declined 17% after news emerged of bugs, security flaws, and even vulnerabilities of the platform that opened doors for hackers to get access to confidential customer data.&nbsp;
Zoom stock also became quite volatile in the first year of its trading when its privacy policy drew investor attention, revealing that the company was collecting vast amounts of customer data, including phone numbers and location.&nbsp;
Zoom shot to fame during the pandemic days as mobility restrictions forced people to stay at home, which led to both companies and educational institutes resorting to online video communication platforms. The company&rsquo;s revenue quadrupled from 2020 to 2021 as millions of people, including governments and multi-billion-dollar businesses, started using Zoom at the height of the pandemic and paid for subscriptions to offer longer video meetings for their users. Zoom stock, buoyed by this stellar growth in active users, reached an all-time high of $569 in October 2020. As illustrated below, Zoom stock has lost most of its gains in the years that followed as normalcy prevailed, bringing back revenue growth from a high of over 320% in 2021 to just 3% in Fiscal 2024 ended last January.&nbsp; <img alt="" src="https://www.benzinga.com/files/u1752652/zm_stock_price.png" style="height:290px; width:450px" />
The optimism surrounding the company during the pandemic days was fueled by the positive remarks of the company management, led by Eric Yuan. For example, during an earnings call in June 2020, CEO Eric Yuan made the case for boosting revenue growth in light of the surging demand for the video platform and said:
&ldquo;As I have mentioned earlier, the current environment has expanded Zoom&rsquo;s market opportunities and outlook as the increase in demand propelled us to a higher growth trajectory than originally planned for this year.&rdquo;
<h4>Security Issues And The Investor Lawsuit</h4>
These security mishaps forced many large clients to abandon the platform in early 2020, directly impacting Zoom stock negatively. For example, on March 28, 2020, SpaceX, led by Elon Musk, sent an email to its 6,000+ workforce banning the usage of Zoom due to security flaws. SpaceX wrote to employees:
&ldquo;We understand that many of us were using this tool (Zoom) for conferences and meeting support. Please use email, text, or phone as alternate means of communication.&rdquo;
This announcement by SpaceX came just a day after Zoom accepted that it was not using standard end-to-end encryption for video conferences.
Zoom&rsquo;s usage of the term &ldquo;end-to-end encryption&rdquo; proved to be inaccurate, with Citizen Lab, a cybersecurity research firm, revealing in 2020 that Zoom&rsquo;s encryption practices do not meet the highest levels of standards in the market. Citizen Lab published a report in April 2020 revealing that Zoom used a non-standard encryption technology, misleading users and investors about the availability of end-to-end encryption. Matthew Green, a computer science professor at Johns Hopkins University, shared his opinion with The Intercept and claimed that Zoom&rsquo;s security practices were questionable. He said:
&ldquo;They&rsquo;re a little bit fuzzy about what&rsquo;s end-to-end encrypted. I think they&rsquo;re doing this in a slightly dishonest way. It would be nice if they just came clean.&rdquo;
Zoom&rsquo;s misrepresentation of the technology used to protect the data and privacy of customers played a part in investors flocking behind the company&rsquo;s stock.
When Zoom&rsquo;s popularity skyrocketed in early 2020 due to pandemic-induced mobility restrictions, Zoombombing, a phenomenon where unauthorized users accessed Zoom meetings, gained popularity too. When these incidents started occurring frequently, large corporate clients decided to ditch Zoom for alternative platforms, leading to stock market volatility. For example, in April 2020, Google banned employees from using Zoom on their corporate laptops due to security flaws.
According to the reports, Zoom knew about these security vulnerabilities but failed to disclose them adequately. Zoombombing involved unauthorized users accessing highly sensitive government meetings and disrupting online classes. The FBI issued a warning about classroom hijacking on March 30, 2020, due to the severity of these cases.
<img alt="" src="https://www.benzinga.com/files/u1752652/zm_fbi.png" style="height:342px; width:350px" />
After these revelations, Zoom faced a class-action lawsuit from investors for falsely claiming &quot;end-to-end encryption&quot; while actually using less secure transport encryption and downplaying security vulnerabilities. Additionally, Zoom was accused of sharing confidential user data with third parties, like Facebook, without consent, violating international data-sharing rules.
<h4>Resolving The Case</h4>
Zoom has made several noteworthy improvements to the underlying technology of its video conferencing platform since 2020, and the company has also made progress toward establishing more transparent guidelines regarding the use of confidential customer data.&nbsp;
In response to this security threat, Zoom has improved the security features of the platform including offering password protection for meetings by default, promoting the use of waiting rooms to filter meeting participants, and enhancing host controls.
Moreover, to settle the allegations of the lawsuit, Zoom reached a deal with shareholders in October 2023 by agreeing to pay $150 million to affected investors. The company, however, did not acknowledge that it had conducted any wrongdoing and maintained the stance that the company&rsquo;s objective has always been to improve the customer experience while rewarding long-term shareholders.&nbsp;
Despite settling investor lawsuits and making improvements in security, Zoom finds itself up against tough competition from major players like Microsoft Teams and Google Meet. &nbsp;Also, the issue of security remains critical in today&#39;s privacy-obsessed world, especially for Zoom, as it strives to regain trust among both consumers and investors to maintain a strong position in the competitive market.&nbsp;
This article is from an unpaid external contributor. It does not represent Benzinga's reporting and has not been edited for content or accuracy.

The Rise and Fall of Zoom: How Security Issues Affected the Pandemic's Superstar

Piper Sandler analyst James Fish maintains Zoom Video Comms (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/ZM#NASDAQ">ZM</a>) with a Neutral and lowers the price target from $72 to $68.

Piper Sandler Maintains Neutral on Zoom Video Comms, Lowers Price Target to $68

Investors with a lot of money to spend have taken a bearish stance on Zoom Video Comms (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/ZM#NASDAQ">ZM</a>).
And retail traders should know.
We noticed this today when the trades showed up on publicly available options history that we track here at Benzinga.
Whether these are institutions or just wealthy individuals, we don't know. But when something this big happens with ZM, it often means somebody knows something is about to happen.
So how do we know what these investors just did? 
Today, <a href="https://pro.benzinga.com/?utm_source=insights">Benzinga</a>'s options scanner spotted 8 uncommon options trades for Zoom Video Comms.
This isn't normal.
The overall sentiment of these big-money traders is split between 0% bullish and 62%, bearish.
Out of all of the special options we uncovered, 4 are puts, for a total amount of $371,580, and 4 are calls, for a total amount of $153,496.
<h3>What's The Price Target?</h3>
Based on the trading activity, it appears that the significant investors are aiming for a price territory stretching from $50.0 to $110.0 for Zoom Video Comms over the recent three months. 
<h3>Volume &amp; Open Interest Trends</h3>
Looking at the volume and open interest is an insightful way to conduct due diligence on a stock.
This data can help you track the liquidity and interest for Zoom Video Comms's options for a given strike price.
Below, we can observe the evolution of the volume and open interest of calls and puts, respectively, for all of Zoom Video Comms's whale activity within a strike price range from $50.0 to $110.0 in the last 30 days. 
<h3>Zoom Video Comms Call and Put Volume: 30-Day Overview</h3>
<img src="https://www.benzinga.com/files/images/story/2024/1720547187_0.png" alt="Options Call Chart" />
<h3>Significant Options Trades Detected:</h3>

<table>
<thead>
<tr>
<th>Symbol</th>
<th>PUT/CALL</th>
<th>Trade Type</th>
<th>Sentiment</th>
<th>Exp. Date</th>
<th>Ask</th>
<th>Bid</th>
<th>Price</th>
<th>Strike Price</th>
<th>Total Trade Price</th>
<th>Open Interest</th>
<th style="text-align: right;">Volume</th>
</tr>
</thead>
<tbody>
<tr>
<td>ZM</td>
<td>PUT</td>
<td>TRADE</td>
<td>BEARISH</td>
<td>06/20/25</td>
<td>$5.25</td>
<td>$5.0</td>
<td>$5.15</td>
<td>$55.00</td>
<td>$206.0K</td>
<td>3.8K</td>
<td style="text-align: right;">0</td>
</tr>
<tr>
<td>ZM</td>
<td>PUT</td>
<td>TRADE</td>
<td>NEUTRAL</td>
<td>01/16/26</td>
<td>$54.65</td>
<td>$50.55</td>
<td>$52.72</td>
<td>$110.00</td>
<td>$79.0K</td>
<td>0</td>
<td style="text-align: right;">0</td>
</tr>
<tr>
<td>ZM</td>
<td>CALL</td>
<td>SWEEP</td>
<td>BEARISH</td>
<td>06/20/25</td>
<td>$5.4</td>
<td>$5.3</td>
<td>$5.3</td>
<td>$65.00</td>
<td>$51.9K</td>
<td>131</td>
<td style="text-align: right;">1</td>
</tr>
<tr>
<td>ZM</td>
<td>CALL</td>
<td>TRADE</td>
<td>NEUTRAL</td>
<td>01/17/25</td>
<td>$4.85</td>
<td>$4.75</td>
<td>$4.8</td>
<td>$60.00</td>
<td>$48.0K</td>
<td>680</td>
<td style="text-align: right;">316</td>
</tr>
<tr>
<td>ZM</td>
<td>PUT</td>
<td>TRADE</td>
<td>BEARISH</td>
<td>09/20/24</td>
<td>$4.65</td>
<td>$4.55</td>
<td>$4.65</td>
<td>$60.00</td>
<td>$46.5K</td>
<td>2.3K</td>
<td style="text-align: right;">3</td>
</tr>
</tbody>
</table>

<h3>About Zoom Video Comms</h3>
Zoom Video Communications provides a communications platform that connects people through video, voice, chat, and content sharing. The company's cloud-native platform enables face-to-face video and connects users across various devices and locations in a single meeting. Zoom, which was founded in 2011 and is headquartered in San Jose, California, serves companies of all sizes from all industries around the world.
Having examined the options trading patterns of Zoom Video Comms, our attention now turns directly to the company. This shift allows us to delve into its present market position and performance
<h3>Zoom Video Comms's Current Market Status</h3>
<ul>
<li>Trading volume stands at 1,618,648, with ZM's price down by -0.42%, positioned at $57.16.</li>
<li>RSI indicators show the stock to be may be approaching oversold.</li>
<li>Earnings announcement expected in 41 days.</li>
</ul>
<h3>What Analysts Are Saying About Zoom Video Comms</h3>
In the last month, 2 experts released ratings on this stock with an average target price of $61.5.
<ul>
<li>Consistent in their evaluation, an analyst from Morgan Stanley keeps a Equal-Weight rating on Zoom Video Comms with a target price of $68. </li>
<li>Maintaining their stance, an analyst from Wells Fargo continues to hold a Underweight rating for Zoom Video Comms, targeting a price of $55. </li>
</ul>
Options are a riskier asset compared to just trading the stock, but they have higher profit potential. Serious options traders manage this risk by educating themselves daily, scaling in and out of trades, following more than one indicator, and following the markets closely.
If you want to stay updated on the latest options trades for Zoom Video Comms, <a href="https://benzinga.grsm.io/register174">Benzinga Pro</a> gives you real-time options trades alerts.

Options

A Closer Look at Zoom Video Comms's Options Market Dynamics

Zoom Video Comms's (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/ZM#NYSE">ZM</a>) short percent of float has risen 8.38% since its last report. The company recently reported that it has 9.88 million shares sold short, which is 3.75% of all regular shares that are available for trading. Based on its trading volume, it would take traders 3.31 days to cover their short positions on average.
<h3>Why Short Interest Matters</h3>
Short interest is the number of shares that have been sold short but have not yet been covered or closed out. <a href="https://www.benzinga.com/money/how-to-short-a-stock/">Short selling</a> is when a trader sells shares of a company they do not own, with the hope that the price will fall. Traders make money from short selling if the price of the stock falls and they lose if it rises.
Short interest is important to track because it can act as an indicator of market sentiment towards a particular stock. An increase in short interest can signal that investors have become more bearish, while a decrease in short interest can signal they have become more bullish.
See Also: <a href="https://www.benzinga.com/short-interest">List of the most shorted stocks</a>
<h3>Zoom Video Comms Short Interest Graph (3 Months)</h3>
<img src="https://www.benzinga.com/files/images/story/2024/1720104311_0.png" alt="short_fig" />
As you can see from the chart above the percentage of shares that are sold short for Zoom Video Comms has grown since its last report. This does not mean that the stock is going to fall in the near-term but traders should be aware that more shares are being shorted.
<h3>Comparing Zoom Video Comms's Short Interest Against Its Peers</h3>
Peer comparison is a popular technique amongst analysts and investors for gauging how well a company is performing. A company's peer is another company that has similar characteristics to it, such as industry, size, age, and financial structure. You can find a company's peer group by reading its 10-K, proxy filing, or by doing your own similarity analysis.
According to <a href="https://pro.benzinga.com/">Benzinga Pro</a>, Zoom Video Comms's peer group average for short interest as a percentage of float is 3.78%, which means the company has less short interest than most of its peers.
Did you know that increasing short interest can actually be bullish for a stock? <a href="https://www.benzinga.com/money/how-to-make-money-on-a-short-squeeze/">This post by Benzinga Money explains how you can profit from it.</a>
This article was generated by Benzinga's automated content engine and was reviewed by an editor.

Short Sellers

Short Ideas

Peering Into Zoom Video Comms's Recent Short Interest

This whale alert can help traders discover the next big trading opportunities.
Whales are entities with large sums of money and we track their transactions here at Benzinga on our options activity scanner.
Traders often look for circumstances when the market estimation of an option diverges away from its normal worth. Abnormal amounts of trading activity could push option prices to hyperbolic or underperforming levels. 
Below are some instances of options activity happening in the Information Technology sector: 
<table>
<thead>
<tr>
<th>Symbol</th>
<th>PUT/CALL</th>
<th>Trade Type</th>
<th>Sentiment</th>
<th>Exp. Date</th>
<th>Strike Price</th>
<th>Total Trade Price</th>
<th>Open Interest</th>
<th>Volume</th>
</tr>
</thead>
<tbody>
<tr>
<td>MAXN</td>
<td>PUT</td>
<td>SWEEP</td>
<td>BEARISH</td>
<td>07/05/24</td>
<td>$1.00</td>
<td>$126.9K</td>
<td>17.4K</td>
<td>55.2K</td>
</tr>
<tr>
<td>NVDA</td>
<td>CALL</td>
<td>SWEEP</td>
<td>BULLISH</td>
<td>06/28/24</td>
<td>$123.00</td>
<td>$27.6K</td>
<td>18.3K</td>
<td>47.5K</td>
</tr>
<tr>
<td>SMCI</td>
<td>CALL</td>
<td>SWEEP</td>
<td>BEARISH</td>
<td>06/28/24</td>
<td>$850.00</td>
<td>$39.7K</td>
<td>1.1K</td>
<td>5.1K</td>
</tr>
<tr>
<td>IREN</td>
<td>PUT</td>
<td>SWEEP</td>
<td>BEARISH</td>
<td>01/17/25</td>
<td>$10.00</td>
<td>$173.1K</td>
<td>24.6K</td>
<td>4.2K</td>
</tr>
<tr>
<td>AAPL</td>
<td>CALL</td>
<td>TRADE</td>
<td>BEARISH</td>
<td>08/16/24</td>
<td>$215.00</td>
<td>$74.4K</td>
<td>34.5K</td>
<td>4.1K</td>
</tr>
<tr>
<td>AVGO</td>
<td>CALL</td>
<td>SWEEP</td>
<td>NEUTRAL</td>
<td>06/28/24</td>
<td>$1610.00</td>
<td>$27.6K</td>
<td>868</td>
<td>2.9K</td>
</tr>
<tr>
<td>MSFT</td>
<td>CALL</td>
<td>TRADE</td>
<td>BEARISH</td>
<td>08/16/24</td>
<td>$455.00</td>
<td>$32.0K</td>
<td>3.1K</td>
<td>2.0K</td>
</tr>
<tr>
<td>AMD</td>
<td>PUT</td>
<td>TRADE</td>
<td>NEUTRAL</td>
<td>07/26/24</td>
<td>$160.00</td>
<td>$108.0K</td>
<td>1.3K</td>
<td>585</td>
</tr>
<tr>
<td>ZM</td>
<td>CALL</td>
<td>TRADE</td>
<td>BULLISH</td>
<td>11/15/24</td>
<td>$65.00</td>
<td>$28.8K</td>
<td>2.8K</td>
<td>414</td>
</tr>
<tr>
<td>CRM</td>
<td>CALL</td>
<td>TRADE</td>
<td>BEARISH</td>
<td>07/19/24</td>
<td>$250.00</td>
<td>$28.0K</td>
<td>6.6K</td>
<td>335</td>
</tr>
</tbody>
</table>

<h2>Explanation</h2>
These itemized elaborations have been created using the accompanying table. 
• Regarding MAXN (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/MAXN#NASDAQ">MAXN</a>), we observe a put option sweep with bearish sentiment. It expires in 7 day(s) on July 5, 2024. Parties traded 1692 contract(s) at a $1.00 strike. This particular put needed to be split into 4 different trades to become filled. The total cost received by the writing party (or parties) was $126.9K, with a price of $75.0 per contract. There were 17462 open contracts at this strike prior to today, and today 55210 contract(s) were bought and sold. 
• For NVDA (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/NVDA#NASDAQ">NVDA</a>), we notice a call option sweep that happens to be bullish, is expiring today. Parties traded 200 contract(s) at a $123.00 strike. This particular call needed to be split into 7 different trades to become filled. The total cost received by the writing party (or parties) was $27.6K, with a price of $138.0 per contract. There were 18321 open contracts at this strike prior to today, and today 47539 contract(s) were bought and sold. 
• For SMCI (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/SMCI#NASDAQ">SMCI</a>), we notice a call option sweep that happens to be bearish, is expiring today. Parties traded 101 contract(s) at a $850.00 strike. This particular call needed to be split into 3 different trades to become filled. The total cost received by the writing party (or parties) was $39.7K, with a price of $390.0 per contract. There were 1198 open contracts at this strike prior to today, and today 5103 contract(s) were bought and sold. 
• For IREN (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/IREN#NASDAQ">IREN</a>), we notice a put option sweep that happens to be bearish, expiring in 203 day(s) on January 17, 2025. This event was a transfer of 753 contract(s) at a $10.00 strike. This particular put needed to be split into 5 different trades to become filled. The total cost received by the writing party (or parties) was $173.1K, with a price of $230.0 per contract. There were 24651 open contracts at this strike prior to today, and today 4262 contract(s) were bought and sold. 
• For AAPL (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/AAPL#NASDAQ">AAPL</a>), we notice a call option trade that happens to be bearish, expiring in 49 day(s) on August 16, 2024. This event was a transfer of 100 contract(s) at a $215.00 strike. The total cost received by the writing party (or parties) was $74.4K, with a price of $744.0 per contract. There were 34571 open contracts at this strike prior to today, and today 4196 contract(s) were bought and sold. 
• For AVGO (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/AVGO#NASDAQ">AVGO</a>), we notice a call option sweep that happens to be neutral, is expiring today. Parties traded 100 contract(s) at a $1610.00 strike. This particular call needed to be split into 3 different trades to become filled. The total cost received by the writing party (or parties) was $27.6K, with a price of $276.0 per contract. There were 868 open contracts at this strike prior to today, and today 2934 contract(s) were bought and sold. 
• For MSFT (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/MSFT#NASDAQ">MSFT</a>), we notice a call option trade that happens to be bearish, expiring in 49 day(s) on August 16, 2024. This event was a transfer of 20 contract(s) at a $455.00 strike. The total cost received by the writing party (or parties) was $32.0K, with a price of $1600.0 per contract. There were 3102 open contracts at this strike prior to today, and today 2026 contract(s) were bought and sold. 
• Regarding AMD (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/AMD#NASDAQ">AMD</a>), we observe a put option trade with neutral sentiment. It expires in 28 day(s) on July 26, 2024. Parties traded 200 contract(s) at a $160.00 strike. The total cost received by the writing party (or parties) was $108.0K, with a price of $540.0 per contract. There were 1315 open contracts at this strike prior to today, and today 585 contract(s) were bought and sold. 
• For ZM (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/ZM#NASDAQ">ZM</a>), we notice a call option trade that happens to be bullish, expiring in 140 day(s) on November 15, 2024. This event was a transfer of 100 contract(s) at a $65.00 strike. The total cost received by the writing party (or parties) was $28.8K, with a price of $288.0 per contract. There were 2822 open contracts at this strike prior to today, and today 414 contract(s) were bought and sold. 
• For CRM (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/CRM#NYSE">CRM</a>), we notice a call option trade that happens to be bearish, expiring in 21 day(s) on July 19, 2024. This event was a transfer of 25 contract(s) at a $250.00 strike. The total cost received by the writing party (or parties) was $28.0K, with a price of $1120.0 per contract. There were 6683 open contracts at this strike prior to today, and today 335 contract(s) were bought and sold. 
Options Alert Terminology 
 - Call Contracts: The right to buy shares as indicated in the contract. 
 - Put Contracts: The right to sell shares as indicated in the contract. 
 - Expiration Date: When the contract expires. One must act on the contract by this date if one wants to use it. 
 - Premium/Option Price: The price of the contract. 
For more information, visit our <a href="https://pro.benzinga.com/blog/how-to-understand-option-alerts/">Guide to Understanding Options Alerts</a> or read <a href="https://www.benzinga.com/markets/options">more about unusual options activity</a>. 
This article was generated by Benzinga's automated content engine and reviewed by an editor.

AVGO

IREN

Maxeon Solar Technologies, Ltd. - Ordinary Shares

MAXN

SMCI

10 Information Technology Stocks Whale Activity In Today's Session

On Tuesday, June 25, 2024, Cathie Wood-led Ark Invest made significant trades in NVIDIA Corp (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/NVDA#NASDAQ">NVDA</a>) and Roku Inc (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/ROKU#NASDAQ">ROKU</a>), amidst considerable market volatility. These trades were part of a series of transactions carried out by Ark&#8217;s various ETFs.
The NVIDIA Trade
The firm&#8217;s ARK Autonomous Technology &amp; Robotics ETF (BATS:<a class="ticker" href="https://www.benzinga.com/stock/ARKQ#BATS">ARKQ</a>) sold 33,834 NVIDIA shares on Tuesday. The transaction was valued at $4.3 million. On the day, Nvidia shares closed 6.8% higher at $126.09.
This move comes in the wake of a significant <a href="https://www.benzinga.com/top-stories/24/06/39490865/nvidia-rebounds-over-6-after-550b-market-cap-loss">market cap loss</a> for the tech giant, which saw a $550 billion drop since Thursday. Despite this, NVIDIA managed to rebound by over 6% on Tuesday, regaining its position as the third most valuable corporation, behind Microsoft Corporation and Apple Inc.
Concerns about NVIDIA&#8217;s influence on the S&amp;P 500 Index have been raised, with some analysts <a href="https://www.benzinga.com/trading-ideas/technicals/24/06/39482710/nvidia-stock-drops-over-12-in-3-trading-days-indicators-suggest-whats-next">warning of a potential broader market slump</a> if the company experiences a significant sell-off. Despite these concerns, NVIDIA&#8217;s fundamentals remain strong, with first-quarter 2024 earnings exceeding Wall Street's expectations, driven by strong performance in its data center and automotive segments.
The Roku Trade
ARK Innovation ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/ARKK#NYSE">ARKK</a>) and ARK Next Generation Internet ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/ARKW#NYSE">ARKW</a>) funds bought 96,465 Roku shares on Tuesday in a transaction valued at $5.3 million. Roku shares closed 0.35% higher at $54.64 in the regular session on Tuesday.
This move comes amidst a turbulent market for Roku, with its stock caught in a <a href="https://www.benzinga.com/general/entertainment/24/06/39422115/roku-stocks-wild-ride-bullish-analysts-bet-on-growth-despite-competitive-threats">fierce bull-bear debate</a> recently. Despite competitive threats, bullish investors are enthusiastic about Roku's revenue potential from several fronts.
The Netflix-rival recently unveiled Roku Exchange, an <a href="https://www.benzinga.com/markets/equities/24/06/39295418/whats-going-on-with-tv-streaming-platform-rokus-shares-on-wednesday">advertising technology solution</a> designed to bridge ad inventory with advertiser demand directly. This platform represents a significant advancement in streaming-first advertising technology, further solidifying Roku&#8217;s position in the market.
See Also: <a href="https://www.benzinga.com/markets/cryptocurrency/24/06/39448955/dogecoin-killer-shiba-inu-falters-here-is-what-these-key-indicators-reveal-about-its-short?itm_source=parsely-api" target="_blank" rel="noreferrer noopener">&#8216;Dogecoin Killer&#8217; Shiba Inu Falters — Here Is What These Key Indicators Reveal About Its Short-Term Prosp</a>
Other Key Trades: 
<ul>
<li>Ark Invest&#8217;s ARKG fund sold a significant number of shares in Ginkgo Bioworks Holdings Inc (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/DNA#NASDAQ">DNA</a>). ARKG also bought shares in Arcturus Therapeutics Holdings Inc (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/ARCT#NASDAQ">ARCT</a>) and 10X Genomics Inc (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/TXG#NASDAQ">TXG</a>). </li>
<li>ARKK sold shares in Zoom Video Communications Inc (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/ZM#NASDAQ">ZM</a>) and bought shares in PagerDuty Inc (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/PD#NYSE">PD</a>). ARKQ bought shares in Blade Air Mobility Inc (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/BLDE#NASDAQ">BLDE</a>) and Markforged Holding Corp (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/MKFG#NASDAQ">MKFG</a>).</li>
</ul>
Read Next: <a href="https://www.benzinga.com/analyst-ratings/analyst-color/24/06/39459711/stock-market-has-a-bad-breadth-problem-again-veteran-wall-street-investor-warns?itm_source=parsely-api" target="_blank" rel="noreferrer noopener">&#8216;Stock Market Has A Bad Breadth Problem Again,&#8217; Veteran Wall Street Investor Warns</a>
This story was generated using <a href="https://www.benzinga.com/author/benzinga-neuro">Benzinga Neuro</a> and edited by <a href="https://www.benzinga.com/author/shivdeep-dhaliwal" target="_blank" rel="noreferrer noopener">Shivdeep Dhaliwal</a>

On Tuesday, Brussels accused Microsoft Corp (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/MSFT#NASDAQ">MSFT</a>) of engaging in <a target="_blank" href="https://www.benzinga.com/markets/equities/24/05/38787304/microsoft-faces-heightened-eu-scrutiny-over-teams-software-report" rel="noreferrer noopener">anti-competitive behavior</a> by bundling its Teams app with its Office suite.
The EU&#8217;s charge sheet alleges that this bundling gives Teams an undue advantage, harming competitors such as Atlassian Corp&#8217;s (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/TEAM#NASDAQ">TEAM</a>) Slack and Zoom (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/ZM#NASDAQ">ZM</a>), Reuters reports.
On Tuesday, the European Union issued a formal charge sheet to Microsoft, outlining concerns that integrating Teams with Office unfairly disadvantages other video conferencing apps.
Also Read: <a target="_blank" href="https://www.benzinga.com/markets/equities/24/06/39428719/whats-going-on-with-nvidia-stock-friday" rel="noreferrer noopener">Nvidia CEO Predicts $1 Trillion Overhaul for AI Data Centers</a>
Margrethe Vestager, the EU&#8217;s executive vice president for competition policy, stated that if Microsoft&#8217;s conduct is confirmed, it would be illegal under EU competition rules.
In April, Microsoft attempted to <a target="_blank" href="https://www.benzinga.com/government/24/04/38017994/microsoft-decouples-teams-from-office-globally-in-response-to-antitrust-concerns-report" rel="noreferrer noopener">address regulatory concerns</a> by proposing to unbundle Teams from Office products beyond Europe.
Microsoft aims to settle the case to avoid formal charges and a potential fine of up to 10% of its annual global revenues.
Meanwhile, the company is also <a target="_blank" href="https://www.benzinga.com/government/24/04/38299939/eu-clears-microsofts-13b-openai-investment-from-formal-probe-a-relief-for-tech-giants" rel="noreferrer noopener">facing heightened scrutiny</a> over its $13 billion partnership with OpenAI, with Brussels considering a full probe.
The European Commission is focusing on Microsoft and investigating other major tech companies.
Over the last decade, Microsoft doled out $1.71 billion (1.6 billion euros) in EU antitrust fines.
Microsoft stock gained over 36% in the last 12 months. Investors can gain exposure to the stock via SPDR Select Sector Fund &#8211; Technology (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XLK#NYSE">XLK</a>) and iShares Global Tech ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/IXN#NYSE">IXN</a>).
Price Action: MSFT shares are trading higher by 0.08% at $447.63 at&nbsp;the last check on Tuesday.
Also Read: <a target="_blank" href="https://www.benzinga.com/news/24/06/39318448/microsoft-is-betting-big-on-ai-outpacing-rivals-with-new-strategy" rel="noreferrer noopener">Microsoft Is Betting Big on AI, Outpacing Rivals with New Strategy</a>
Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
Photo via Shutterstock

The year 2024 has seen some eye-popping contrasts in the tech industry. While Tesla Inc (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/TSLA#NASDAQ">TSLA</a>) is leading massive layoffs, cutting 14% of its workforce, other tech giants such as Apple Inc (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/AAPL#NASDAQ">AAPL</a>) and Alphabet Inc (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/GOOG#NASDAQ">GOOG</a>) (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/GOOGL#NASDAQ">GOOGL</a>) are busy bumping up executive <a href="https://www.benzinga.com/quote/TSLA/news">salaries by millions</a>.
<h1 class="wp-block-heading">Tesla's Massive Layoffs</h1>
Let&#8217;s start with Tesla. The electric vehicle pioneer has slashed 14,500 jobs, a 14% reduction in its workforce. CEO Elon Musk cited inefficiencies as the reason behind the cuts, though plans to reinstitute stock options for exceptional performance were also mentioned.
But Tesla isn&#8217;t alone — other big names in tech are trimming their workforce too, including Dell Technologies Inc (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/DELL#NYSE">DELL</a>), Cisco Systems Inc (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/CSCO#NASDAQ">CSCO</a>) and PayPal Holdings Inc (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/PYPL#NASDAQ">PYPL</a>).
More Details: <a href="https://www.benzinga.com/top-stories/24/06/39457749/tesla-leads-2024-us-tech-layoffs-so-far-followed-by-dell-cisco-xerox-paypal-microsoft">Tesla Leads 2024 US Tech Layoffs So Far, Followed By Dell, Cisco, Xerox, PayPal, Microsoft</a>
<h1 class="wp-block-heading">Contrasts In The Tech Industry</h1>
While Tesla and its peers are tightening their belts, Apple Inc (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/AAPL#NASDAQ">AAPL</a>) and Alphabet Inc (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/GOOG#NASDAQ">GOOG</a>) (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/GOOGL#NASDAQ">GOOGL</a>) are going in the opposite direction. They've been handing out hefty raises to their top executives. CFOs at these tech giants have seen their compensation packages balloon, thanks to generous stock-based incentives, as <a href="https://www.wsj.com/articles/meet-the-highest-paid-cfos-of-2023-1b8e7748?mod=latest_headlines">reported</a> by WSJ.
This surge in pay is largely driven by stock awards and options, reflecting a strategy to retain top talent amid economic uncertainties.
This stark contrast between layoffs and executive pay raises underscores the growing divide in the tech industry. While thousands of employees face job insecurity, top executives are enjoying substantial financial rewards. 
<h1 class="wp-block-heading">Big Paydays For Apple, Alphabet Executives</h1>
Apple's Luca Maestri and Alphabet's Ruth Porat are among the highest-paid CFOs. Their pay hikes are part of a broader trend where median CFO compensation at top U.S. companies rose by 8.5% in 2023.
Apple's CFO saw a significant boost in compensation thanks to a surge in stock awards, reflecting the company's strong market position.
Porat saw her compensation package swell, driven by similar stock-based incentives. This trend of rewarding top executives handsomely, even as other parts of the company face cuts, is drawing increased attention and scrutiny from investors and employees.
<h1 class="wp-block-heading">Other Companies Joining The Pay Hike Bandwagon</h1>
It&#8217;s not just Apple and Alphabet. Other tech giants like Zoom Video Communications Inc (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/ZM#NASDAQ">ZM</a>), Walmart Inc (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/WMT#NYSE">WMT</a>) and Advanced Micro Devices Inc (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/AMD#NASDAQ">AMD</a>) have also increased executive pay significantly.
<ul>
<li>Zoom's CFO Kelly Steckelberg saw a staggering rise in her compensation due to substantial stock awards, making her one of the highest-paid executives in the industry.</li>
<li>Walmart's CFO John David Rainey received a considerable pay package tied to his joining bonus and stock awards, reflecting the company&#8217;s efforts to attract top talent.</li>
<li>Similarly, AMD&#8217;s Jean Hu received a notable boost in her pay, highlighting the broader trend of rewarding executives handsomely despite economic uncertainties.</li>
</ul>
As 2024 progresses, the tech industry's approach to managing its workforce and rewarding its executives will continue to evolve. 
Companies like Apple and Alphabet, which are increasing executive pay amidst a wave of industry layoffs, highlight the ongoing challenges and disparities within the sector.
Read Next: <a href="https://www.benzinga.com/analyst-ratings/analyst-color/24/06/39459711/stock-market-has-a-bad-breadth-problem-again-veteran-wall-street-investor-warns">&#8216;Stock Market Has A Bad Breadth Problem Again,&#8217; Veteran Wall Street Investor Warns</a>
Photo: Shutterstock

ADBE

ASML

BABA

BBAI

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GFAI

INTC

INTU

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Multiple AI Companies Are Bypassing Tool Used By Publishers To Stop Content Scraping, Licensing Startup Tollbit Says

Top Wall Street analysts changed their outlook on these top names. For a complete view of all analyst rating changes, including upgrades and downgrades, please see our <a href="https://www.benzinga.com/analyst-ratings/">analyst ratings page</a>.
<ul>
<li>Wells Fargo cut the price target for Zoom Video Communications, Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/ZM#NASDAQ">ZM</a>) from $60 to $55. Wells Fargo analyst Phil Winslow maintained an Underweight rating. Zoom Video shares gained 3.7% to close at $58.31 on Thursday. <a href="https://www.benzinga.com/quote/ZM/analyst-ratings">See how other analysts view this stock.</a></li>
<li>BMO Capital slashed the price target for Winnebago Industries, Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/WGO#NYSE">WGO</a>) from $80 to $75. BMO Capital analyst Tristan Thomas-Martin maintained an Outperform rating. Winnebago shares fell 3.5% to close at $54.69 on Thursday. <a href="https://www.benzinga.com/quote/WGO/analyst-ratings">See how other analysts view this stock.</a></li>
<li>UBS lowered Jabil Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/JBL#NYSE">JBL</a>) price target from $130 to $120. UBS analyst David Vogt maintained a Neutral rating. Jabil shares fell 11.4% to close at $111.79 on Thursday. <a href="https://www.benzinga.com/quote/JBL/analyst-ratings">See how other analysts view this stock</a>.</li>
<li>Piper Sandler cut the price target for Align Technology, Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/ALGN#NASDAQ">ALGN</a>) from $375 to $330. Piper Sandler analyst Jason Bednar maintained an Overweight rating. Align Technology shares rose 0.2% to close at $242.61 on Thursday. <a href="https://www.benzinga.com/quote/ALGN/analyst-ratings">See how other analysts view this stock.</a></li>
<li>Stifel slashed Darden Restaurants, Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/DRI#NYSE">DRI</a>) price target from $190 to $180. Stifel analyst Chris O&#8217;Cull maintained a Buy rating. Darden shares gained 1.5% to close at $154.29 on Thursday. <a href="https://www.benzinga.com/quote/DRI/analyst-ratings">See how other analysts view this stock</a>.</li>
<li>JP Morgan cut The Kroger Co. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/KR#NYSE">KR</a>) price target from $60 to $58. JP Morgan analyst Ken Goldman maintained an Overweight rating. Kroger shares fell 3.3% to close at $50.28 on Thursday. See how other analysts view this stock.</li>
<li>Baird boosted the price target for Amazon.com, Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/AMZN#NASDAQ">AMZN</a>) from $210 to $213. Baird analyst Colin Sebastian maintained an Outperform rating. Amazon shares gained 1.8% to close at $186.10 on Thursday. <a href="https://www.benzinga.com/quote/AMZN/analyst-ratings">See how other analysts view this stock.</a></li>
<li>RBC Capital increased Sarepta Therapeutics, Inc.. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/SRPT#NASDAQ">SRPT</a>) price target from $142 to $182. RBC Capital analyst Brian Abrahams maintained a Sector Perform rating. Sarepta Therapeutics shares gained 5.1% to close at $123.50 on Thursday. <a href="https://www.benzinga.com/quote/SRPT/analyst-ratings">See how other analysts view this stock</a>.</li>
<li>Bernstein raised Apple Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/AAPL#NASDAQ">AAPL</a>) price target from $195 to $240. Bernstein analyst Toni Sacconaghi maintained an Outperform rating. Apple shares fell 2.2% to close at $209.68 on Thursday. <a href="https://www.benzinga.com/quote/AAPL/analyst-ratings">See how other analysts view this stock</a>.</li>
<li>Oppenheimer boosted NIKE, Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/NKE#NYSE">NKE</a>) price target from $110 to $120. Oppenheimer analyst Brian Nagel upgraded the stock from Perform to Outperform. NIKE shares rose 0.8% to close at $95.57 on Thursday. <a href="https://www.benzinga.com/quote/NKE/analyst-ratings">See how other analysts view this stock.</a></li>
</ul>
Check This Out: <a href="https://www.benzinga.com/news/24/06/39428617/smith-wesson-brands-abacus-life-and-other-big-stocks-moving-lower-in-fridays-pre-market-session">Smith &amp; Wesson Brands, Abacus Life And Other Big Stocks Moving Lower In Friday&#8217;s Pre-Market Session</a>

Wells Fargo analyst Phil Winslow maintains Zoom Video Comms (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/ZM#NASDAQ">ZM</a>) with a Underweight and lowers the price target from $60 to $55.

Wells Fargo Maintains Underweight on Zoom Video Comms, Lowers Price Target to $55

Zoom Video Comms's (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/ZM#NYSE">ZM</a>) short percent of float has fallen 27.0% since its last report. The company recently reported that it has 9.10 million shares sold short, which is 3.46% of all regular shares that are available for trading. Based on its trading volume, it would take traders 2.18 days to cover their short positions on average.
<h3>Why Short Interest Matters</h3>
Short interest is the number of shares that have been sold short but have not yet been covered or closed out. <a href="https://www.benzinga.com/money/how-to-short-a-stock/">Short selling</a> is when a trader sells shares of a company they do not own, with the hope that the price will fall. Traders make money from short selling if the price of the stock falls and they lose if it rises.
Short interest is important to track because it can act as an indicator of market sentiment towards a particular stock. An increase in short interest can signal that investors have become more bearish, while a decrease in short interest can signal they have become more bullish.
See Also: <a href="https://www.benzinga.com/short-interest">List of the most shorted stocks</a>
<h3>Zoom Video Comms Short Interest Graph (3 Months)</h3>
<img src="https://www.benzinga.com/files/images/story/2024/1718640910_0.png" alt="short_fig" />
As you can see from the chart above the percentage of shares that are sold short for Zoom Video Comms has declined since its last report. This does not mean that the stock is going to rise in the near-term but traders should be aware that less shares are being shorted.
<h3>Comparing Zoom Video Comms's Short Interest Against Its Peers</h3>
Peer comparison is a popular technique amongst analysts and investors for gauging how well a company is performing. A company's peer is another company that has similar characteristics to it, such as industry, size, age, and financial structure. You can find a company's peer group by reading its 10-K, proxy filing, or by doing your own similarity analysis.
According to <a href="https://pro.benzinga.com/">Benzinga Pro</a>, Zoom Video Comms's peer group average for short interest as a percentage of float is 3.79%, which means the company has less short interest than most of its peers.
Did you know that increasing short interest can actually be bullish for a stock? <a href="https://www.benzinga.com/money/how-to-make-money-on-a-short-squeeze/">This post by Benzinga Money explains how you can profit from it.</a>
This article was generated by Benzinga's automated content engine and was reviewed by an editor.

Looking Into Zoom Video Comms's Recent Short Interest

These ten large-cap stocks were the worst performers in the last week. Are they in your portfolio?
<ol>
<li>Celsius Holdings, Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/CELH#NASDAQ">CELH</a>) lost 15.22% last week after multiple analysts <a href="https://www.benzinga.com/quote/celh/analyst-ratings" target="_blank" rel="noreferrer noopener">lowered their price forecasts</a> for the stock.</li>
<li>Gold Fields Limited (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/GFI#NYSE">GFI</a>) shares tumbled 12.59% after the company lowered its 2024 group production guidance due to the impact of weather <a href="https://www.benzinga.com//node/39317613" target="_blank" rel="noreferrer noopener">events on the Salares Norte project</a>.</li>
<li>Paramount Global (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/PARAA#NASDAQ">PARAA</a>) shares decreased 13.63% after it was announced that the proposed <a href="https://www.benzinga.com//node/39319277" target="_blank" rel="noreferrer noopener">transaction with Skydance is not moving forward</a>.</li>
<li>Warner Bros. Discovery, Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/WBD#NASDAQ">WBD</a>) shares declined 11.71% after Liberty Global on Thursday announced intentions to acquire <a href="https://www.benzinga.com//node/39318490" target="_blank" rel="noreferrer noopener">the company&#8217;s stake in Formula E</a>.</li>
<li>PayPal Holdings, Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/PYPL#NASDAQ">PYPL</a>) shares fell 9.16% on news competitor Affirm&#8217;s payment products are expected to be available to <a href="https://www.benzinga.com//node/39295963" target="_blank" rel="noreferrer noopener">Apple Pay users in the US later this year</a>.</li>
<li>Samsara Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/IOT#NYSE">IOT</a>) shares were down 7.66%.</li>
<li>Orange SA (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/ORAN#NYSE">ORAN</a>) stock lost 7.66% in the last week.</li>
<li>Nutrien Ltd. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/NTR#NYSE">NTR</a>) stock fell 7.14% after Piper Sandler maintained an Underweight rating and <a href="https://www.benzinga.com/quote/ntr/analyst-ratings" target="_blank" rel="noreferrer noopener">lowered its price target from $56 to $55</a>.</li>
<li>Mobileye Global Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/MBLY#NASDAQ">MBLY</a>) shares fell 7.51%.</li>
<li>Zoom Video Communications, Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/ZM#NASDAQ">ZM</a>) stock decreased 7.51%.</li>
<li>MicroStrategy Incorporated (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/MSTR#NASDAQ">MSTR</a>) shares declined 5.88% after the company announced a proposed private institutional offering of $500 million in convertible <a href="https://www.benzinga.com//node/39335806" target="_blank" rel="noreferrer noopener">senior notes to acquire additional Bitcoin</a>.</li>
</ol>
<ol></ol>
Also Read: <a href="https://www.benzinga.com/news/24/06/39348307/apple-and-broadcom-were-among-10-large-cap-stocks-with-biggest-gains-in-the-last-week-june-9-june-15">Apple And Broadcom Were Among 10 Large Cap Stocks With Biggest Gains In The Last Week (June 9-June 15, 2024): Are They In Your Portfolio?</a>
Photo via Shutterstock

12 analysts have shared their evaluations of Zoom Video Comms (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/ZM#NASDAQ">ZM</a>) during the recent three months, expressing a mix of bullish and bearish perspectives.
The following table provides a quick overview of their recent ratings, highlighting the changing sentiments over the past 30 days and comparing them to the preceding months.
<table>
<thead>
<tr>
<th></th>
<th style="text-align: right;">Bullish</th>
<th style="text-align: right;">Somewhat Bullish</th>
<th style="text-align: right;">Indifferent</th>
<th style="text-align: right;">Somewhat Bearish</th>
<th style="text-align: right;">Bearish</th>
</tr>
</thead>
<tbody>
<tr>
<td>Total Ratings</td>
<td style="text-align: right;">2</td>
<td style="text-align: right;">2</td>
<td style="text-align: right;">7</td>
<td style="text-align: right;">1</td>
<td style="text-align: right;">0</td>
</tr>
<tr>
<td>Last 30D</td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">1</td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">0</td>
</tr>
<tr>
<td>1M Ago</td>
<td style="text-align: right;">1</td>
<td style="text-align: right;">2</td>
<td style="text-align: right;">4</td>
<td style="text-align: right;">1</td>
<td style="text-align: right;">0</td>
</tr>
<tr>
<td>2M Ago</td>
<td style="text-align: right;">1</td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">0</td>
</tr>
<tr>
<td>3M Ago</td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">2</td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">0</td>
</tr>
</tbody>
</table>
In the assessment of 12-month price targets, analysts unveil insights for Zoom Video Comms, presenting an average target of $74.58, a high estimate of $95.00, and a low estimate of $60.00. Highlighting a 4.38% decrease, the current average has fallen from the previous average price target of $78.00. 
<img src="https://www.benzinga.com/files/images/story/2024/1718370035_0.png" alt="price target chart" />
<h2>Exploring Analyst Ratings: An In-Depth Overview</h2>
The standing of Zoom Video Comms among financial experts is revealed through an in-depth exploration of recent analyst actions. The summary below outlines key analysts, their recent evaluations, and adjustments to ratings and price targets.
<table>
<thead>
<tr>
<th>Analyst</th>
<th>Analyst Firm</th>
<th>Action Taken</th>
<th>Rating</th>
<th>Current Price Target</th>
<th>Prior Price Target</th>
</tr>
</thead>
<tbody>
<tr>
<td>Meta Marshall</td>
<td>Morgan Stanley</td>
<td>Lowers</td>
<td>Equal-Weight</td>
<td>$68.00</td>
<td>$72.00</td>
</tr>
<tr>
<td>Rishi Jaluria</td>
<td>RBC Capital</td>
<td>Maintains</td>
<td>Outperform</td>
<td>$95.00</td>
<td>$95.00</td>
</tr>
<tr>
<td>Phil Winslow</td>
<td>Wells Fargo</td>
<td>Lowers</td>
<td>Underweight</td>
<td>$60.00</td>
<td>$70.00</td>
</tr>
<tr>
<td>Tyler Radke</td>
<td>Citigroup</td>
<td>Raises</td>
<td>Neutral</td>
<td>$77.00</td>
<td>$76.00</td>
</tr>
<tr>
<td>Parker Lane</td>
<td>Stifel</td>
<td>Lowers</td>
<td>Hold</td>
<td>$65.00</td>
<td>$70.00</td>
</tr>
<tr>
<td>Catharine Trebnick</td>
<td>Rosenblatt</td>
<td>Raises</td>
<td>Buy</td>
<td>$78.00</td>
<td>$75.00</td>
</tr>
<tr>
<td>Peter Levine</td>
<td>Evercore ISI Group</td>
<td>Lowers</td>
<td>In-Line</td>
<td>$70.00</td>
<td>$72.00</td>
</tr>
<tr>
<td>William Power</td>
<td>Baird</td>
<td>Lowers</td>
<td>Outperform</td>
<td>$84.00</td>
<td>$90.00</td>
</tr>
<tr>
<td>Peter Weed</td>
<td>Bernstein</td>
<td>Lowers</td>
<td>Market Perform</td>
<td>$78.00</td>
<td>$82.00</td>
</tr>
<tr>
<td>Catharine Trebnick</td>
<td>Rosenblatt</td>
<td>Announces</td>
<td>Buy</td>
<td>$75.00</td>
<td>-</td>
</tr>
<tr>
<td>Catharine Trebnick</td>
<td>Rosenblatt</td>
<td>Maintains</td>
<td>Neutral</td>
<td>$75.00</td>
<td>-</td>
</tr>
<tr>
<td>Samad Samana</td>
<td>Jefferies</td>
<td>Announces</td>
<td>Hold</td>
<td>$70.00</td>
<td>-</td>
</tr>
</tbody>
</table>
<h3>Key Insights:</h3>
<ul>
<li>Action Taken: Responding to changing market dynamics and company performance, analysts update their recommendations. Whether they 'Maintain', 'Raise', or 'Lower' their stance, it signifies their response to recent developments related to Zoom Video Comms. This offers insight into analysts' perspectives on the current state of the company.</li>
<li>Rating: Providing a comprehensive analysis, analysts offer qualitative assessments, ranging from 'Outperform' to 'Underperform'. These ratings reflect expectations for the relative performance of Zoom Video Comms compared to the broader market.</li>
<li>Price Targets: Analysts predict movements in price targets, offering estimates for Zoom Video Comms's future value. Examining the current and prior targets offers insights into analysts' evolving expectations.</li>
</ul>
Considering these analyst evaluations in conjunction with other financial indicators can offer a comprehensive understanding of Zoom Video Comms's market position. Stay informed and make well-informed decisions with our Ratings Table.
<a href="https://www.benzinga.com/quote/ZM/analyst-ratings?utm_source=Benzinga Insights">Stay up to date on Zoom Video Comms analyst ratings.</a>
<h2>Get to Know Zoom Video Comms Better</h2>
Zoom Video Communications provides a communications platform that connects people through video, voice, chat, and content sharing. The company's cloud-native platform enables face-to-face video and connects users across various devices and locations in a single meeting. Zoom, which was founded in 2011 and is headquartered in San Jose, California, serves companies of all sizes from all industries around the world.
<h3>Key Indicators: Zoom Video Comms's Financial Health</h3>
Market Capitalization Perspectives: The company's market capitalization falls below industry averages, signaling a relatively smaller size compared to peers. This positioning may be influenced by factors such as perceived growth potential or operational scale.
Revenue Growth: Over the 3 months period, Zoom Video Comms showcased positive performance, achieving a revenue growth rate of 3.25% as of 30 April, 2024. This reflects a substantial increase in the company's top-line earnings. As compared to its peers, the revenue growth lags behind its industry peers. The company achieved a growth rate lower than the average among peers in Information Technology sector.
Net Margin: Zoom Video Comms's net margin excels beyond industry benchmarks, reaching 18.95%. This signifies efficient cost management and strong financial health.
Return on Equity (ROE): The company's ROE is below industry benchmarks, signaling potential difficulties in efficiently using equity capital. With an ROE of 2.65%, the company may need to address challenges in generating satisfactory returns for shareholders.
Return on Assets (ROA): Zoom Video Comms's financial strength is reflected in its exceptional ROA, which exceeds industry averages. With a remarkable ROA of 2.14%, the company showcases efficient use of assets and strong financial health.
Debt Management: The company maintains a balanced debt approach with a debt-to-equity ratio below industry norms, standing at 0.01.
<h2>Analyst Ratings: What Are They?</h2>
Experts in banking and financial systems, analysts specialize in reporting for specific stocks or defined sectors. Their comprehensive research involves attending company conference calls and meetings, analyzing financial statements, and engaging with insiders to generate what are known as analyst ratings for stocks. Typically, analysts assess and rate each stock once per quarter.
Some analysts also offer predictions for helpful metrics such as earnings, revenue, and growth estimates to provide further guidance as to what to do with certain tickers. It is important to keep in mind that while stock and sector analysts are specialists, they are also human and can only forecast their beliefs to traders.
This article was generated by Benzinga's automated content engine and reviewed by an editor.

Assessing Zoom Video Comms: Insights From 12 Financial Analysts

Morgan Stanley analyst Meta Marshall maintains Zoom Video Comms (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/ZM#NASDAQ">ZM</a>) with a Equal-Weight and lowers the price target from $72 to $68.

Morgan Stanley Maintains Equal-Weight on Zoom Video Comms, Lowers Price Target to $68

Investors with a lot of money to spend have taken a bearish stance on Zoom Video Comms (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/ZM#NASDAQ">ZM</a>).
And retail traders should know.
We noticed this today when the trades showed up on publicly available options history that we track here at Benzinga.
Whether these are institutions or just wealthy individuals, we don't know. But when something this big happens with ZM, it often means somebody knows something is about to happen.
So how do we know what these investors just did? 
Today, <a href="https://pro.benzinga.com/?utm_source=insights">Benzinga</a>'s options scanner spotted 10 uncommon options trades for Zoom Video Comms.
This isn't normal.
The overall sentiment of these big-money traders is split between 30% bullish and 60%, bearish.
Out of all of the special options we uncovered, 7 are puts, for a total amount of $250,486, and 3 are calls, for a total amount of $143,440.
<h3>Projected Price Targets</h3>
Based on the trading activity, it appears that the significant investors are aiming for a price territory stretching from $55.0 to $65.0 for Zoom Video Comms over the recent three months. 
<h3>Analyzing Volume &amp; Open Interest</h3>
Looking at the volume and open interest is an insightful way to conduct due diligence on a stock.
This data can help you track the liquidity and interest for Zoom Video Comms's options for a given strike price.
Below, we can observe the evolution of the volume and open interest of calls and puts, respectively, for all of Zoom Video Comms's whale activity within a strike price range from $55.0 to $65.0 in the last 30 days. 
<h3>Zoom Video Comms 30-Day Option Volume &amp; Interest Snapshot</h3>
<img src="https://www.benzinga.com/files/images/story/2024/1718294494_0.png" alt="Options Call Chart" />
<h3>Significant Options Trades Detected:</h3>

<table>
<thead>
<tr>
<th>Symbol</th>
<th>PUT/CALL</th>
<th>Trade Type</th>
<th>Sentiment</th>
<th>Exp. Date</th>
<th>Ask</th>
<th>Bid</th>
<th>Price</th>
<th>Strike Price</th>
<th>Total Trade Price</th>
<th>Open Interest</th>
<th style="text-align: right;">Volume</th>
</tr>
</thead>
<tbody>
<tr>
<td>ZM</td>
<td>CALL</td>
<td>SWEEP</td>
<td>NEUTRAL</td>
<td>12/18/26</td>
<td>$15.6</td>
<td>$13.35</td>
<td>$13.35</td>
<td>$65.00</td>
<td>$85.4K</td>
<td>12</td>
<td style="text-align: right;">54</td>
</tr>
<tr>
<td>ZM</td>
<td>PUT</td>
<td>SWEEP</td>
<td>BEARISH</td>
<td>08/16/24</td>
<td>$6.3</td>
<td>$6.2</td>
<td>$6.3</td>
<td>$65.00</td>
<td>$69.3K</td>
<td>2.3K</td>
<td style="text-align: right;">218</td>
</tr>
<tr>
<td>ZM</td>
<td>PUT</td>
<td>TRADE</td>
<td>BULLISH</td>
<td>09/20/24</td>
<td>$1.98</td>
<td>$1.91</td>
<td>$1.91</td>
<td>$55.00</td>
<td>$47.7K</td>
<td>635</td>
<td style="text-align: right;">21</td>
</tr>
<tr>
<td>ZM</td>
<td>CALL</td>
<td>SWEEP</td>
<td>BULLISH</td>
<td>01/17/25</td>
<td>$6.55</td>
<td>$6.4</td>
<td>$6.5</td>
<td>$60.00</td>
<td>$32.5K</td>
<td>465</td>
<td style="text-align: right;">13</td>
</tr>
<tr>
<td>ZM</td>
<td>PUT</td>
<td>SWEEP</td>
<td>BEARISH</td>
<td>07/05/24</td>
<td>$6.15</td>
<td>$5.2</td>
<td>$5.75</td>
<td>$65.00</td>
<td>$30.4K</td>
<td>2</td>
<td style="text-align: right;">1</td>
</tr>
</tbody>
</table>

<h3>About Zoom Video Comms</h3>
Zoom Video Communications provides a communications platform that connects people through video, voice, chat, and content sharing. The company's cloud-native platform enables face-to-face video and connects users across various devices and locations in a single meeting. Zoom, which was founded in 2011 and is headquartered in San Jose, California, serves companies of all sizes from all industries around the world.
<h3>Where Is Zoom Video Comms Standing Right Now?</h3>
<ul>
<li>Currently trading with a volume of 1,742,753, the ZM's price is down by -2.85%, now at $58.8. </li>
<li>RSI readings suggest the stock is currently may be oversold.</li>
<li>Anticipated earnings release is in 67 days.</li>
</ul>
<h3>Expert Opinions on Zoom Video Comms</h3>
5 market experts have recently issued ratings for this stock, with a consensus target price of $75.4.
<ul>
<li>Maintaining their stance, an analyst from Wells Fargo continues to hold a Underweight rating for Zoom Video Comms, targeting a price of $60. </li>
<li>An analyst from Citigroup persists with their Neutral rating on Zoom Video Comms, maintaining a target price of $77. </li>
<li>An analyst from Baird has decided to maintain their Outperform rating on Zoom Video Comms, which currently sits at a price target of $84. </li>
<li>An analyst from Rosenblatt persists with their Buy rating on Zoom Video Comms, maintaining a target price of $78. </li>
<li>An analyst from Bernstein persists with their Market Perform rating on Zoom Video Comms, maintaining a target price of $78. </li>
</ul>
Options trading presents higher risks and potential rewards. Astute traders manage these risks by continually educating themselves, adapting their strategies, monitoring multiple indicators, and keeping a close eye on market movements. Stay informed about the latest Zoom Video Comms options trades with real-time alerts from <a href="https://benzinga.grsm.io/register174">Benzinga Pro</a>.

Unpacking the Latest Options Trading Trends in Zoom Video Comms

Ark Invest, led by Cathie Wood, made significant trades on Wednesday involving Robinhood Markets Inc (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/HOOD#NASDAQ">HOOD</a>) and Zoom Video Communications Inc (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/ZM#NASDAQ">ZM</a>).
The Robinhood Trade
Ark Invest sold 64,706 shares of Robinhood, valued at approximately $1.53 million, through the Ark Fintech Innovation ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/ARKF#NYSE">ARKF</a>) and ARK Next Generation Internet ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/ARKW#NYSE">ARKW</a>). This move comes after the company <a href="https://www.benzinga.com/markets/equities/24/06/39263031/cathie-wood-lead-ark-invest-dumps-7-6m-worth-of-robinhood-shares-amid-gamestop-buzz-bitcoin-chop">recently reduced its holdings</a> in Robinhood amid market fluctuations. The company&#8217;s shares are currently trading higher following the announcement of its May operating data.
Notably, the Robinhood trade took place on a day Bitcoin (CRYPTO: <a class="ticker" href="https://www.benzinga.com/quote/btc/usd">BTC</a>) and Ethereum (CRYPTO: <a class="ticker" href="https://www.benzinga.com/quote/eth/usd">ETH</a>) saw some uptrend but the <a href="https://www.benzinga.com/markets/cryptocurrency/24/06/39303902/bitcoin-ethereum-dogecoin-fail-to-sustain-uptrend-after-feds-hawkish-guidance-analyst-fore">rally was not sustained</a> due to the Federal Reserve Bank&#8217;s hawkish guidance on interest rate cuts.
The Zoom trade
Ark Invest also sold 54,165 shares of Zoom, valued at approximately $3.3 million, through ARKW. This decision comes after the company <a href="https://www.benzinga.com/news/earnings/24/05/38926994/zoom-q1-earnings-revenue-beat-eps-beat-cash-flow-surges-continued-ai-integration-and-more">reported strong first-quarter earnings</a> last month, beating revenue and EPS estimates.
Other Key Trades: 
<ul>
<li>Ark Invest bought 21,260 shares of Markforged Holding Corp (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/MKFG#NYSE">MKFG</a>) through the ARK Autonomous Technology &amp; Robotics ETF (BATS:<a class="ticker" href="https://www.benzinga.com/stock/ARKQ#BATS">ARKQ</a>). Ark Invest also bought 8,776 shares of Markforged through the ARK Space Exploration &amp; Innovation ETF (BATS: ARKX).</li>
<li>Ark Invest bought 15,383 shares of PagerDuty Inc (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/PD#NYSE">PD</a>) through the ARK Innovation ETF (NYSE: ARKK). Ark Invest bought 39,589 shares of Arcturus Therapeutics Holdings Inc (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/ARCT#NASDAQ">ARCT</a>) through the ARK Genomic Revolution ETF (BATS: ARKG). </li>
<li>Ark Invest sold 229,654 shares of Teladoc Health Inc (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/TDOC#NYSE">TDOC</a>) through the ARKW ETF. Ark Invest sold 125,257 shares of Verve Therapeutics Inc (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/VERV#NASDAQ">VERV</a>) through the ARKK ETF. The firm also sold 24,866 shares of Verve through the ARKG ETF.</li>
</ul>
Read Next: <a href="https://www.benzinga.com/markets/cryptocurrency/24/06/39278216/donald-trump-opens-21-point-lead-in-2024-presidential-race-according-to-crypto-bettors?itm_source=parsely-api" target="_blank" rel="noreferrer noopener">Donald Trump Opens 21-Point Lead In 2024 Presidential Race, According To Crypto Bettors</a>
This story was generated using <a href="https://www.benzinga.com/author/benzinga-neuro">Benzinga Neuro</a> and edited by <a href="https://www.benzinga.com/author/shivdeep-dhaliwal" target="_blank" rel="noreferrer noopener">Shivdeep Dhaliwal</a>

Cathie Wood of Ark Investment Management remains confident in her firm's AI investments despite scaling back on Nvidia Corp (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/NVDA#NASDAQ">NVDA</a>) shares prior to their significant rise last year.
Speaking at the Greenwich Economic Forum in Hong Kong, Wood emphasized Ark's continued exposure to emerging tech players, even though Nvidia remains a part of their specialized portfolios.
Wood noted that she initially invested in Nvidia in 2014 when the stock was approximately $4 per share, adjusted for splits.
The flagship ARK Innovation ETF held the stock until it surged to around $400 before selling off <a target="_blank" href="https://www.benzinga.com/general/education/24/05/39091154/heres-how-much-cathie-wood-ark-invest-missed-out-on-by-selling-nvidia-early" rel="noreferrer noopener">most of the position just before Nvidia's dramatic rally last year.</a>
The AI-focused chipmaker has since seen its shares skyrocket, with a market value <a target="_blank" href="https://www.benzinga.com/news/24/06/39194554/nvidia-crosses-3t-market-cap-ai-darling-joins-ranks-of-apple-microsoft-closes-at-all-time-high" rel="noreferrer noopener">surpassing $3 trillion</a>, overtaking Apple Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/AAPL#NASDAQ">AAPL</a>).
Wood explained that the decision to reduce Nvidia holdings was based on the belief that Nvidia's success would benefit other companies.
As a result, Ark began evaluating potential beneficiaries within the AI sector.
Despite Nvidia's ongoing prominence, Wood highlighted that the semiconductor industry is experiencing a pause as companies reassess their AI strategies.
During her remarks, Wood acknowledged that some companies anticipated to gain from AI advancements have yet to see the expected revenue boosts, with Salesforce Inc (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/CRM#NYSE">CRM</a>) being a notable example.
Also Read: <a target="_blank" href="https://www.benzinga.com/markets/cryptocurrency/24/05/39062709/cathie-wood-el-salvadors-bitcoin-and-ai-push-could-grow-its-gdp-10x-in-5-years" rel="noreferrer noopener">Cathie Wood: El Salvador's Bitcoin And AI Push Could Grow Its GDP 10X In 5 Years</a>
Meanwhile, she reaffirmed her strong stance on autonomous driving as the "biggest AI project on earth," reiterating her faith in Tesla Inc (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/TSLA#NASDAQ">TSLA</a>).
Ark increased its Tesla position in the first quarter despite concerns about <a target="_blank" href="https://www.benzinga.com/trading-ideas/technicals/24/04/38056019/tesla-deliveries-slip-technical-indicators-add-to-stocks-downward-momentum" rel="noreferrer noopener">slowing electric vehicle demand</a> and competition from Chinese rival BYD Company (OTC:<a class="ticker" href="https://www.benzinga.com/stock/BYDDY#OTC">BYDDY</a>).
According to Ark's 2023 analysis, Tesla's share price is projected to reach $2,000 by 2027, with potential highs and lows ranging from $2,500 to $1,400.
Additionally, the Ark Venture Fund recently disclosed stakes in xAI, OpenAI, and Anthropic, signifying its commitment to AI innovation.
Wood gained widespread recognition during the pandemic for her bold investment calls, particularly in companies like Tesla, Zoom Video Communications Inc (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/ZM#NASDAQ">ZM</a>), and Roku Inc (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/ROKU#NASDAQ">ROKU</a>).
Despite a 12% decline in the ARK Innovation ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/ARKK#NYSE">ARKK</a>) this year, largely due to Tesla's 30% drop, the fund had an impressive 68% gain last year.
Wood predicts significant interest rate cuts in 2024, driven by economic recessions and rate reductions in several countries.
Disclsaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
Cathie Wood Ark Photo courtesy Benzinga YouTube and Unsplash

Have you evaluated the performance of Zoom Video Communications&#39; (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/zm#NASDAQ">ZM</a>) international operations for the quarter ending April 2024? Given the extensive global presence of this video-conferencing company, analyzing the patterns in international revenues is crucial for understanding its financial strength and potential for growth.
The global economy today is deeply interlinked, making a company&#39;s engagement with international markets a critical factor in determining its financial success and growth path. It has become essential for investors to comprehend how much a company relies on these foreign markets, as this understanding reveals the firm&#39;s potential for consistent earnings, its capacity to harness different economic cycles, and its overall growth prospects.
Presence in international markets can act as a hedge against domestic economic downturns and provide access to faster-growing economies. However, this diversification also brings complexities due to currency fluctuations, geopolitical risks and differing market dynamics.
Our review of ZM&#39;s last quarterly performance uncovered some notable trends in the revenue contributions from its international markets, which are commonly analyzed and tracked by Wall Street experts.
The company&#39;s total revenue for the quarter amounted to $1.14 billion, marking an increase of 3.3% from the year-ago quarter. We will next turn our attention to dissecting ZM&#39;s international revenue to get a clearer picture of how significant its operations are outside its main base.
Unveiling Trends in ZM&#39;s International Revenues
APAC accounted for 12.1% of the company&#39;s total revenue during the quarter, translating to $138 million. Revenues from this region represented a surprise of -1.57%, with Wall Street analysts collectively expecting $140.2 million. When compared to the preceding quarter and the same quarter in the previous year, APAC contributed $141.89 million (12.4%) and $141 million (12.8%) to the total revenue, respectively.
Of the total revenue, $184 million came from EMEA during the last fiscal quarter, accounting for 16.1%. This represented a surprise of +7.23% as analysts had expected the region to contribute $171.59 million to the total revenue. In comparison, the region contributed $182.98 million, or 16%, and $180 million, or 16.3%, to total revenue in the previous and year-ago quarters, respectively.
International Revenue Predictions
The current fiscal quarter&#39;s total revenue for Zoom Video, as projected by Wall Street analysts, is expected to reach $1.15 billion, reflecting an increase of 0.9% from the same quarter last year. The breakdown of this revenue by foreign region is as follows: APAC is anticipated to contribute 12.5% or $143.66 million and EMEA 15.1% or $173.87 million.
For the full year, a total revenue of $4.61 billion is expected for the company, reflecting an increase of 1.9% from the year before. The revenues from APAC and EMEA are expected to make up 12.5% and 15% of this total, corresponding to $575.27 million and $690.54 million respectively.
Key Takeaways
Zoom Video&#39;s leaning on foreign markets for its revenue stream presents a mix of chances and challenges. Therefore, a vigilant watch on its international revenue movements can greatly aid in projecting the company&#39;s future direction.
With the increasing intricacies of global interdependence and geopolitical strife, Wall Street analysts meticulously observe these patterns, especially for companies with an international footprint, to tweak their forecasts of earnings. Importantly, several additional factors, such as a company&#39;s domestic market status, also impact these earnings forecasts.
We at Zacks strongly focus on the dynamic earnings forecast of companies, given that empirical studies have demonstrated its potent impact on the immediate price movement of stocks. Invariably, there&#39;s a positive relationship -- upward earnings predictions often result in an increase in stock prices.
With an impressive externally audited track record, our proprietary stock rating tool - the Zacks Rank - harnesses the power of earnings estimate revisions and serves as an effective indicator of a stock&#39;s near-term price performance.
At present, Zoom Video holds a Zacks Rank #3 (Hold). This ranking implies that its near-term performance might mirror the overall market movement.
Zoom Video&#39;s Recent Stock Market Performance
Over the past month, the stock has gained 1.6% versus the Zacks S&amp;P 500 composite&#39;s 4.8% increase. The Zacks Computer and Technology sector, of which Zoom Video is a part, has risen 9.3% over the same period. The company&#39;s shares have declined 11.1% over the past three months compared to the S&amp;P 500&#39;s 4.6% increase. Over the same period, the sector has risen 7.9%.
<a href="https://www.zacks.com/stock/news/2279722/unlocking-zoom-video-zm-international-revenues-trends-surprises-and-prospects?cid=CS-BENZ-FT-fundamental_analysis|nfm_international_revenues-2279722">To read this article on Zacks.com click here.</a>

U.S. stocks settled mostly higher on Friday, with the Nasdaq index settling at a fresh record high during the session.
The tech-heavy Nasdaq also outperformed last week recording a gain of 1.41%. However, the Dow Jones index declined 2.33% last week, recording its first negative week in five.
Wall Street analysts make new stock picks on a daily basis. Unfortunately for investors, not all analysts have particularly impressive track records at predicting market movements. Even when it comes to one single stock, analyst ratings and price targets can vary widely, leaving investors confused about which analyst&#8217;s opinion to trust.
Benzinga&#8217;s Analyst Ratings API is a collection of the highest-quality stock ratings curated by the Benzinga news desk via direct partnerships with major sell-side banks. Benzinga displays overnight ratings changes on a daily basis three hours prior to the U.S. equity market opening. Data specialists at investment dashboard provider Toggle.ai recently uncovered that the analyst insights Benzinga Pro subscribers and Benzinga readers regularly receive can successfully be used as trading indicators to outperform the stock market.
Top Analyst Picks: Fortunately, any Benzinga reader can access the latest analyst ratings on the <a href="https://www.benzinga.com/analyst-ratings/analyst-color/22/09/28888638/exclusive-study-finds-benzinga-analyst-ratings-data-yields-market-beating-strategie">Analyst Stock Ratings</a> page. One of the ways traders can sort through Benzinga&#8217;s extensive database of analyst ratings is by analyst accuracy. Here&#8217;s a look at the most recent stock picks from each of the five most accurate Wall Street analysts, according to Benzinga <a href="https://www.benzinga.com/analyst-stock-ratings">Analyst Stock</a> Ratings.
Analyst: Hans Mosesmann
<ul>
<li>Analyst Firm: Rosenblatt</li>
<li>Ratings Accuracy: 88%</li>
<li>Latest Rating: Maintained a Buy rating on NVIDIA Corporation (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/NVDA#NASDAQ">NVDA</a>) with a price target of $1,400 on May 23. This analysts sees around 31% upside in the stock.</li>
<li>Recent News: On May 22, NVIDIA reported better-than-expected financial results for its first quarter and issued strong guidance for the second quarter. The company announced a 10-for-1 stock split and raised its quarterly dividend by 150%..</li>
</ul>
Analyst: William Stein
<ul>
<li>Analyst Firm: Truist Securities</li>
<li>Ratings Accuracy: 87%</li>
<li>Latest Rating: Maintained a Buy rating on Analog Devices, Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/ADI#NASDAQ">ADI</a>) and increased the price target from $222 to $275 on May 23. This analyst sees around 18% upside in the stock.</li>
<li>Recent News: On May 22, Analog Devices posted better-than-expected second-quarter financial results.</li>
</ul>
Analyst: Mark Kelley
<ul>
<li>Analyst Firm: Stifel</li>
<li>Ratings Accuracy: 87%</li>
<li>Latest Rating: Maintained a Hold rating on Nexxen International Ltd. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/NEXN#NASDAQ">NEXN</a>) and raised the price target from $5.5 to $6 on May 21. This analyst sees around 4% downside in the stock.</li>
<li>Recent News: On May 20, Nexxen International posted better-than-expected quarterly sales.</li>
</ul>
Analyst: William Power
<ul>
<li>Analyst Firm: Baird</li>
<li>Ratings Accuracy: 86%</li>
<li>Latest Rating: Maintained an Outperform rating on Zoom Video Communications, Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/ZM#NASDAQ">ZM</a>) and cut the price target from $90 to $84 on May 21. This analyst sees about 32% gain in the stock.</li>
<li>Recent News: On May 20, Zoom Video Communications reported stronger-than-expected earnings for its first quarter.</li>
</ul>
Analyst: Lauren Silberman
<ul>
<li>Analyst Firm: Deutsche Bank</li>
<li>Ratings Accuracy: 86%</li>
<li>Latest Rating: Maintained a Buy rating on Sysco Corporation (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SYY#NYSE">SYY</a>) and cut the price target from $90 to $86 on May 23. This analyst sees over 18% upside in the stock.</li>
<li>Recent News: On May 22, Sysco announced updates amid its investor day presentation.</li>
</ul>
Read More: <a href="https://www.benzinga.com/trading-ideas/long-ideas/24/05/39007136/jim-cramer-says-this-basic-materials-stock-is-too-dicey-shares-his-take-on-arista-networ">Jim Cramer Says This Basic Materials Stock Is &#8216;Too Dicey,&#8217; Shares His Take On Arista Networks</a>

This Analyst With 88% Accuracy Rate Sees Around 31% Upside In Nvidia - Here Are 5 Stock Picks For Last Week From Wall Street's Most Accurate Analysts

<a href="https://investorplace.com">InvestorPlace - Stock Market News, Stock Advice &amp; Trading Tips</a>
In the wake of the pandemic, we&rsquo;re witnessing the emergence of value traps throughout the tech landscape on Wall Street, but there are still many undervalued <a href="https://investorplace.com/industries/technology/">tech stocks</a> you can buy. The challenges faced by U.S. markets amid the tech stock sell-offs of 2022 and the uneven influence of the generative AI boom have left some <a href="https://investorplace.com/industries/technology/" target="_blank">tech stocks</a> to trade well below their all-time high values recorded earlier in the decade.



For investors, this means that many tech stocks are priced at significantly more attractive values than only a couple of years ago. However, are they likely to recover their losses? Or continue their decline? This underlines the dichotomy of the value trap.



Value traps refer to the illusion that an investment opportunity is attractively priced because it&rsquo;s been trading at a far lower value than in the past. This makes stocks appear discounted but doesn&rsquo;t account for the possibility that they may never return to their former glory.



Despite no guarantees that a value trap can make a market recovery, many tech stocks on Wall Street seek to innovate their way out of their recent hardships and offer plenty of potential for a market recovery. Here are three of the biggest examples of undervalued tech stocks:



<h2>Undervalued Tech Stocks: Zoom Video Communications Inc (ZM)</h2>



<div><img width="300" height="169" src="https://investorplace.com/wp-content/uploads/2021/08/zoom_zm_1600-300x169.jpg" alt="A woman sitting at a desk waves at a large number of people on the videoconferencing software Zoom (ZM)."><div>Source: Girts Ragelis / Shutterstock.com</div></div>During the pandemic, Zoom Inc (NASDAQ:<a href="https://investorplace.com/stock-quotes/zm-stock-quote/" target="_blank">ZM</a>) became synonymous with remote collaboration during global lockdowns and offered users the chance to socialize with friends and family at a time when face-to-face contact was impossible.



However, the video communication platform fell behind its competitors in the post-pandemic era, and its stock value tumbled as a result. By the end of Q2 2024, Zoom sat 89.41% adrift of its 2020 peak.



This could make the stock a classic value trap. However, Zoom appears to be an ambitious company backed by strong fundamentals.



The stock&rsquo;s Q1 2024 <a href="https://www.constellationr.com/blog-news/insights/zoom-q1-earnings-strong-sees-growth-employee-experience" target="_blank">earnings of $216.3 million</a> on revenue of $1.14 billion are up 3.2% year-over-year, and non-GAAP earnings of $1.35 per share have weighed in far higher than Wall Street expectations of $1.19 per share on revenue of $1.14 billion.



Crucially, Zoom is intent on rolling out generative AI tools within its services. With the rollout of AI Companion, the video conferencing platform <a href="https://www.verdict.co.uk/zoom-ai-companion-genai-enhanced-productivity/?cf-view" target="_blank">can automatically set up meetings</a>, attendees, start times, and other key metadata while monitoring in-call intent.



As the age of work-from-home (WFH) continues to gather momentum, Zoom seems set to embrace generative AI to offer users next-generation services. This bid to out-innovate rivals, backed by positive fundamentals, could see the platform return as a key competitor in the remote collaboration space. Thus, I think it is one of the most undervalued tech stocks you can buy right now.



<h2>PayPal Holdings Inc (PYPL)</h2>



<div><img width="300" height="169" src="https://investorplace.com/wp-content/uploads/2024/01/pypl1600-300x169.png" alt="Closeup of the PayPal app icon seen on a Google Pixel smartphone. PayPal Holdings, Inc. (PYPL) is a global financial technology company operating an online payment system."><div>Source: Tada Images / Shutterstock.com</div></div>Another example of a stock that&rsquo;s suffered a significant decline following a pandemic boom is PayPal Inc. (NASDAQ:<a href="https://investorplace.com/stock-quotes/pypl-stock-quote/" target="_blank">PYPL</a>), which ended Q2 2024 some 80.19% below its 2021 peak value.



Despite its post-pandemic downturn, PayPal remains a digital payment leader, with 426 million active accounts and operations throughout 200 global markets.



The firm&rsquo;s Q1 2024 earnings show significant growth potential, with total payment volume (TPV) rising 14% to <a href="https://finance.yahoo.com/news/paypal-holdings-inc-pypl-q1-125159116.html" target="_blank">$403.86 billion from the year prior</a>.



One of PayPal&rsquo;s biggest reasons for optimism is the unveiling of a <a href="https://www.pymnts.com/data/2024/paypal-reportedly-building-ad-business-based-on-user-data/" target="_blank">brand-new advertising sales network</a>. This network could leverage user spending data and insights to shape targeted recommendations. This could revolutionize how merchants advertise their goods to customers.



This added utility for PayPal&rsquo;s user data could provide a springboard for its stock, which has struggled to build momentum in 2024 so far despite positive earnings reports. For investors, the incorporation of its new advertising network could offer an opportunity for sustainable growth for the embattled stock. I think it is one of the most undervalued tech stocks.



<h2>Cisco Systems Inc (CSCO)</h2>



<div><img width="300" height="169" src="https://investorplace.com/wp-content/uploads/2020/09/cisco-csco-1600-300x169.jpg" alt="the cisco (CSCO) logo on a wall"><div>Source: Valeriya Zankovych / Shutterstock.com</div></div>Despite its impressive longevity on Wall Street, Cisco Systems (NASDAQ:<a href="https://investorplace.com/stock-quotes/csco-stock-quote/" target="_blank">CSCO</a>) has spent much of the 2020s struggling to generate meaningful momentum. Since the beginning of 2022, the stock has tumbled more than 20% and has struggled to inspire investors.



This may soon change, however, with the communications conglomerate announcing a transformative $1 billion global investment fund intent on expanding and developing secure, reliable, and trustworthy AI solutions.



The announcement of the fund represents Cisco&rsquo;s first significant foray into artificial intelligence. Innovative <a href="https://newsroom.cisco.com/c/r/newsroom/en/us/a/y2024/m06/cisco-launches-1b-global-ai-investment-fund.html" target="_blank">startups</a> such as Cohere, Mistral AI, and Scale AI have already joined the firm&rsquo;s investment portfolio to strengthen Cisco&rsquo;s position in the industry.



In addition, Cisco <a href="https://www.cnbc.com/2024/06/25/cisco-is-very-optimistic-about-its-growing-business-with-china-evs-.html" target="_blank">has announced</a> that it&rsquo;s &lsquo;very optimistic&rsquo; about its involvement in growing business with Chinese electric vehicle (EV) firms and supporting their overseas expansion.



This indicates that Cisco intends to penetrate global markets deeper and support emerging technologies at scale. With such a commitment to embracing innovation, it&rsquo;s certainly worth tracking the discounted price of CSCO, with the prospect of a market recovery becoming more tangible.



On the date of publication, Dmytro Spilka did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com&nbsp;<a href="https://investorplace.com/corporate/investorplace-publishing-guidelines/">Publishing Guidelines</a>.



On the date of publication, the responsible editor did not have (either directly or indirectly) any positions in the securities mentioned in this article.
<div>Dmytro is a finance and investing writer based in London. He is also the founder of Solvid, Pridicto and Coinprompter. His work has been published in Nasdaq, Kiplinger, FXStreet, Entrepreneur, VentureBeat and InvestmentWeek.</div><h3>More From InvestorPlace</h3>
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The post <a href="https://investorplace.com/2024/07/3-tech-value-traps-that-are-actually-screaming-buys/">3 Tech Value Traps That Are Actually Screaming Buys</a> appeared first on <a href="https://investorplace.com">InvestorPlace</a>.

3 Tech Value Traps That Are Actually Screaming Buys

<a href="https://investorplace.com">InvestorPlace - Stock Market News, Stock Advice &amp; Trading Tips</a>
In today&rsquo;s adverse market conditions, understanding when to sell stocks is as crucial as knowing when to invest. The focus here is on three companies that should be considered for potential divestment. Each of these companies faces unique challenges that signal potential trouble for investors.



Indeed, these companies have fundamental weaknesses. For instance, despite promising electric vehicle (EV) ambitions, one listed company grapples with operational inefficiencies that impact its bottom line. Another one, a once high-flyer in the video conferencing space, now contends with a concerning churn rate among its online customers, threatening its revenue streams. Meanwhile, the last one on the stocks to sell list struggles with declining sales and customer traffic despite efforts to enhance operational efficiency.



Learning about these challenges is pivotal to safeguarding portfolios. Whether it&rsquo;s recognizing unsustainable production-to-delivery ratios or grappling with customer retention issues, these indicators provide critical insights into each company&rsquo;s financial health and prospects.



<h2>Lucid (LCID)</h2>



<div><img width="300" height="169" src="https://investorplace.com/wp-content/uploads/2024/03/lcid1600-2-300x169.png" alt="Lucid Air Touring sedan display at the Service Center. Lucid Motors (LCID) is a manufacturer of luxury EV Electric Vehicles."><div>Source: Jonathan Weiss / Shutterstock.com</div></div>Lucid (NASDAQ:<a href="https://investorplace.com/stock-quotes/lcid-stock-quote/">LCID</a>) designs and manufactures EVs in the luxury market segment. The company&rsquo;s operational edge is in the discrepancy between production and deliveries. In Q1 2024, Lucid produced&nbsp;<a href="https://ir.lucidmotors.com/static-files/d5375cb4-a85a-4637-91ed-601cb68f78c7" target="_blank">1,728 vehicles</a>&nbsp;but delivered 1,967. Meanwhile, this was its top quarter to date for deliveries, with a 39.9% year-over-year increase.



However, the lower production figure relative to deliveries was an active decision to be cost-conscious rather than a reflection of production bottlenecks. Hence, this&nbsp;indicates a cautious approach to managing production costs, suggesting underlying issues in scaling up manufacturing efficiently.



Additionally, the production-to-delivery ratio indicates that more than one vehicle was delivered for each produced.&nbsp;This&nbsp;is unsustainable in the long term and could point to inventory depletion or inefficiencies in production scaling. The cost of revenue in Q1 was&nbsp;$404.8 million,&nbsp;significantly exceeding the revenue of&nbsp;<a href="https://finance.yahoo.com/news/lucid-group-inc-nasdaq-lcid-150202764.html" target="_blank">$172.7 million</a>.&nbsp;This disparity suggests that the cost of producing each vehicle is substantially higher than the selling price. It is leading to negative gross margins.



To summarize, Lucid is on the stocks to sell list due to operational inefficiencies, particularly production and delivery disparities leading to negative gross margins.&nbsp;



<h2>Zoom Video (ZM)</h2>



<div><img width="300" height="169" src="https://investorplace.com/wp-content/uploads/2021/08/zoom_zm_1600-300x169.jpg" alt="A woman sitting at a desk waves at a large number of people on the videoconferencing software Zoom (ZM)."><div>Source: Girts Ragelis / Shutterstock.com</div></div>Zoom Video (NASDAQ:<a href="https://investorplace.com/stock-quotes/zm-stock-quote/">ZM</a>) provides video conferencing and collaboration software solutions. The company faces a notable challenge in its online average monthly churn rate.&nbsp;This&nbsp;increased to<a href="https://investors.zoom.us/news-releases/news-release-details/zoom-video-communications-reports-financial-results-first-1" target="_blank">&nbsp;3.2% in Q1 fiscal 2025</a>&nbsp;from&nbsp;3.1% a year earlier. The churn rate reflects the percentage of online customers that stop using Zoom&rsquo;s services each month, influenced by factors like tightening payment grace periods. The higher churn rate indicates that Zoom is losing a significant portion of its online customer base regularly.&nbsp;This&nbsp;poses risks to revenue stability and profitability. Replacing churned customers with new ones can incur substantial acquisition costs and strain cash flow management.



Moreover, in Zoom&rsquo;s case, the increased churn issue becomes crucial for financial health and maintaining competitive positioning in the market. For instance, transitioning&nbsp;<a href="https://investors.zoom.us/static-files/70629942-ff77-4bed-91d6-422766c47e6b" target="_blank">26.8K enterprise customers</a>&nbsp;with low annual recurring revenue (ARR) to online impacted the total number of enterprise customers, reducing them to 191K. Such transitions can affect the topline in the short term while the online churn rate increases. To conclude, Zoom is included on the stocks to sell list due to a high online average monthly churn rate.



<h2>Big Lots (BIG)</h2>



<div><img width="300" height="169" src="https://investorplace.com/wp-content/uploads/2019/09/big1600-300x169.jpg" alt="Photo of a Big Lots (BIG) store shot from the parking lot with a shopping cart in the foreground and clear blue sky in the background. BIG stock"><div>Source: Jonathan Weiss / Shutterstock.com</div></div>Big Lots (NYSE:<a href="https://investorplace.com/stock-quotes/big-stock-quote/">BIG</a>) is a discount retailer of furniture, home d&eacute;cor, and household essentials. The company had a considerable decline in net sales for Q1 2024.&nbsp;This&nbsp;is at&nbsp;<a href="https://biglotsinc.gcs-web.com/static-files/b9edeaec-1280-44bf-a9c3-9f8805752d8f" target="_blank">$1.009 billion</a>, with a 10.2% decrease against $1.124 billion in Q1 2023. This decline was primarily due to a sharp decrease in comparable sales (comp sales) of&nbsp;9.9% YOY. This negative comp sales trend indicates that Big Lots struggles to attract customers and increase sales across its stores.



Additionally, despite efforts to enhance value perception and increase bargain penetration, overall revenue declined significantly.&nbsp;This&nbsp;highlights challenges in converting operational improvements into revenue growth. Despite efforts to control costs through initiatives like Project Springboard, Big Lots continues to face high operating expenses relative to its revenue base. The high selling, general, and administrative expenses contribute to the company&rsquo;s adjusted net loss of&nbsp;<a href="https://seekingalpha.com/article/4697800-big-lots-inc-big-q1-2024-earnings-call-transcript?source=section%3ATranscripts%7Csection_asset%3ATranscripts%7Cfirst_level_url%3Asymbol%7Cbutton%3ATitle%7Clock_status%3ANo%7Cline%3A1" target="_blank">$132.3 million</a>&nbsp;for Q1,&nbsp;translating to an adjusted diluted loss per share of $4.51.



Overall, Big Lots is on the stocks to sell list because of the declining net and comparable sales, despite efforts to improve operational efficiency through initiatives like Project Springboard.



On the date of publication, Yiannis Zourmpanos did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com&nbsp;<a href="https://investorplace.com/corporate/investorplace-publishing-guidelines/" target="_blank">Publishing Guidelines</a>.



On the date of publication, the responsible editor did not have (either directly or indirectly) any positions in the securities mentioned in this article.
<div>Yiannis Zourmpanos is the founder of Yiazou Capital Research, a stock-market research platform designed to elevate the due diligence process through in-depth business analysis.</div><h3>More From InvestorPlace</h3>
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The post <a href="https://investorplace.com/2024/07/sell-now-or-regret-later-3-stocks-to-dump-in-july/">Sell Now or Regret Later: 3 Stocks to Dump in July</a> appeared first on <a href="https://investorplace.com">InvestorPlace</a>.

Sell Now or Regret Later: 3 Stocks to Dump in July

<a href="https://investorplace.com">InvestorPlace - Stock Market News, Stock Advice &amp; Trading Tips</a>
The S&amp;P 500 has gained over 17% year-to-date (YTD), and it is turning out to be another great year for investors. However, amidst all the good news, some huge disappointments have surfaced for investors.



These three stocks have been disastrous for their holders. Their value has fallen by double digits, and they show no signs of recovery. With most of the stock market performing so well, investors have no incentive to hold onto them. As a result, the current trend in these selloffs will continue in 2024.&nbsp;



Let&rsquo;s take a deep dive into why they are struggling and why their prospects are not enticing for investors.



<h2>Compass Minerals International, Inc. (CMP)</h2>



<div><img width="300" height="169" src="https://investorplace.com/wp-content/uploads/2019/07/mining1600-300x169.jpg" alt="construction workers point at mining equipment in the near distance"><div>Source: Shutterstock</div></div>Compass Minerals International, Inc. (NYSE:<a href="https://investorplace.com/stock-quotes/cmp-stock-quote/">CMP</a>) is a major player in the international minerals industry. It mainly supplies plant nutrients, magnesium chloride, and salt, with a focus on North America.



In its second quarter of fiscal year 2024 results, the company <a href="https://investors.compassminerals.com/investors-relations/investor-news/press-release-details/2024/Compass-Minerals-Reports-Fiscal-2024-Second-Quarter-Results/default.aspx">reported $364 million in revenue</a>, which was an 11.5% decline compared to the same period last year. Its salt business, which is its biggest source of revenue, experienced a 14% year-over-year (YOY) decline in revenue to $310.4 million.



Amidst the drop in revenue, the company has also seen its capital expenditure increase dramatically. This has reduced its net cash from operations to $22.3 million in the first six months of 2024 compared to $149.5 million the previous year.



Over the past five years, the CMP shares have been on a downward trend, losing over 80% of its value thus far. YTD, the stock has lost almost 60% of its value. Based on its long-term loss in value, CMP stock appears to be headed for another disastrous performance in 2024.



<h2>Lululemon Athletica Inc (LULU)</h2>



<div><img width="300" height="169" src="https://investorplace.com/wp-content/uploads/2022/04/lulu-1600-300x169.png" alt="Lululemon storefront in a mall. People shop inside the store among the clothes. LULU stock."><div>Source: lentamart / Shutterstock</div></div>Lululemon Athletica Inc (NASDAQ:<a href="https://investorplace.com/stock-quotes/lulu-stock-quote/">LULU</a>) is an athletic wear multinational company based in British Columbia, Canada, but incorporated in Delaware in the U.S. This year, it has lost 41.01% of its value.



In Q1 of 2024, the company reported <a href="https://corporate.lululemon.com/~/media/Files/L/Lululemon/investors/results-center/q1-2024-financial-supplement.pdf">revenue growth of 10%</a> to $2.2 billion. One of the reasons for the huge collapse in its stock price is its lofty valuation. At the start of the year, LULU stock had a trailing P/E of over 50. Amid the selloff, it has fallen to a more reasonable 23.93.



Despite the recent decline, some analysts feel the stock is still overpriced and expect a further decline in the stock. For instance, Jefferies analyst <a href="https://www.marketwatch.com/story/levis-is-seeing-growing-demand-for-looser-fits-this-is-what-it-means-for-lululemon-and-nike-cb650679">Randal Konik forecasted</a> that the rise in the popularity of denim could impact Lululemon sales. In the past, Konik has forecast a price of $225 for LULU, well below the current price of $294.04 as of July 8.



<h2>Zoom Video Communications, Inc. (ZM)</h2>



<div><img width="300" height="169" src="https://investorplace.com/wp-content/uploads/2021/08/zoom_zm_1600-300x169.jpg" alt="A woman sitting at a desk waves at a large number of people on the videoconferencing software Zoom (ZM)."><div>Source: Girts Ragelis / Shutterstock.com</div></div>Zoom Video Communications, Inc (NASDAQ:<a href="https://investorplace.com/stock-quotes/zm-stock-quote/">ZM</a>) is a video conferencing platform that rose to prominence during the pandemic.&nbsp;The company experienced a boom in revenue, but it did not last. As pandemic measures were eased and people returned to offices, the need for ZM was reduced. Instead, plenty of free alternatives are available for most basic video conferencing functions.



Since the end of the pandemic lockdowns globally, the stock has lost nearly 90% of its value from its all-time high of $559, achieved in October 2020. In Q1 of 2025, Zoom reported a <a href="https://investors.zoom.us/news-releases/news-release-details/zoom-video-communications-reports-financial-results-first-1">revenue increase of only 3.2% YOY</a>, which is not what would be expected of a growth stock. Net income rose significantly to $216.3 million, which is a significant improvement from the same period the previous year.



Despite the huge growth in net income, its current trailing P/E of 21.50 is still too high based on its revenue growth. Another factor that could hurt future growth is the rise of alternative platforms. For instance, Google Meet has recently seen an explosion in popularity. Best of all, it is free and does all the basic functions that Zoom can accomplish. With over <a href="https://earthweb.com/google-meet-users/">300 million monthly users on Google Meet</a>, Zoom has limited growth potential. Unless it can find a way to increase revenue, net income will also experience a slowdown in the future.



On the date of publication, Joel Lim did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the&nbsp;InvestorPlace.com&nbsp;<a href="https://investorplace.com/corporate/investorplace-publishing-guidelines/" target="_blank">Publishing Guidelines</a>.



On the date of publication, the responsible editor did not have (either directly or indirectly) any positions in the securities mentioned in this article.
<div>Joel Lim is a contributor at InvestorPlace.com and a finance content contractor who creates content for several companies like LTSE and Realtor, along with financial publications, including Business Insider, Yahoo Finance, Mises Institution and Foundation for Economic Education.</div><h3>More From InvestorPlace</h3>
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The post <a href="https://investorplace.com/2024/07/3-doomed-stocks-on-the-verge-of-collapse/">3 Doomed Stocks on the Verge of Collapse</a> appeared first on <a href="https://investorplace.com">InvestorPlace</a>.

3 Doomed Stocks on the Verge of Collapse

Zoom Video Communications (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/ZM#NASDAQ">ZM</a>), makers of the Zoom platform, enjoyed what may have been the pinnacle of its corporate life back during the p...

Zoom Video Communications (NASDAQ:ZM) May Get New Life With "Virtual Experiences"

Zoom Video (NASDAQ:ZM) May Get New Life with "Virtual Experiences"

In a report released yesterday, Michael Turrin from Wells Fargo maintained a Sell rating on Zoom Video Communications (ZM – Research Report), with ...

Wells Fargo Sticks to Their Sell Rating for Zoom Video Communications (ZM)

Zoom Video: Top Tech Pick, 40% Net Cash, GAAP Profitability, 11x Earnings

Zoom: A Decline That Makes Little Sense, Buy Confidently Here (Upgrade)

Zoom Video: Premature To Pin Reacceleration Hopes On The Contact Center (Rating Downgrade)

<a href="https://investorplace.com">InvestorPlace - Stock Market News, Stock Advice &amp; Trading Tips</a>
Artificial intelligence (AI) is expected to significantly impact the global economy and business in the coming years. While some debate sustainability of the current AI-driven growth, investors and traders alike consider AI stocks to buy. With AI technology undoubtedly here to stay, this disruption will reshape the way we work, conduct business and invest.



Multiple stocks have seen dramatic gains in recent years due to AI adoption. However, they may be vulnerable to changes in investor sentiment now. Apple (NASDAQ:<a href="https://investorplace.com/stock-quotes/aapl-stock-quote/">AAPL</a>), Microsoft (NASDAQ:<a href="https://investorplace.com/stock-quotes/msft-stock-quote/">MSFT</a>) and Nvidia (NASDAQ:<a href="https://investorplace.com/stock-quotes/nvda-stock-quote/">NVDA</a>) are getting the lion&rsquo;s share of headlines and investor interest as they battle it out for the <a href="https://www.investors.com/news/technology/artificial-intelligence-stocks/">leading edge</a>. Yet, as with the dot-com boom, millionaire-making stocks haven&rsquo;t grown yet despite witnessing substantial returns.



Generative AI is <a href="https://www.mckinsey.com/quarterly/the-five-fifty/five-fifty-gen-ai-and-the-future-of-work">expected to add $2.6-4.4 trillion</a> globally in the coming years, allowing ample room for stock growth. As AI applications and technologies become more pervasive, the overall economic benefits are projected to be sizable.



While large companies make headlines, smaller players with consistent earnings and projected continued AI-enabled expansion may be worth examining. Let&rsquo;s explore three stocks to buy for long-term AI-driven returns.



<h2>DoubleVerify Holdings (DV)</h2>



<div><img width="300" height="169" src="https://investorplace.com/wp-content/uploads/2019/07/data1600a-300x169.jpg" alt="a stock image of a person working on data charts using a futuristic computer. data infrastructure stocks to buy"><div>Source: Shutterstock</div></div>One of the stocks to buy that has the potential to return millions is DoubleVerify Holdings (NYSE:<a href="https://investorplace.com/stock-quotes/dv-stock-quote/">DV</a>). The technology firm provides data analytics and user authentication services for online companies. Its primary focus is helping advertisers reach audiences and achieve effective, quality returns on sales. The company uses AI to increase <a href="https://ir.doubleverify.com/news-events/press-releases/detail/297/doubleverify-gen-ai-driving-significant-increase-in-new-ad">fraud detection</a> capabilities. It also offers <a href="https://doubleverify.com/scibids-ai/">AI as a service</a> to enhance the effectiveness of digital advertising and optimize strategies for individual businesses.



What makes DoubleVerify attractive as a growth stock is that it has consistently <a href="https://finance.yahoo.com/quote/DV/financials/">increased EPS</a> over the last four years. The company is projected to continue doing so this year, delivering a 17% sales growth in 2024. <a href="https://doubleverify.com/newsroom/doubleverify-bolsters-media-authentication-on-meta-extends-brand-safety-and-suitability-to-facebook-and-instagram-feeds-reels/">Expanding into new markets</a> like Meta (NASDAQ:<a href="https://investorplace.com/stock-quotes/meta-stock-quote/">META</a>), YouTube and TikTok will probably weigh on its current earnings but is expected to enhance future growth.



This may explain why analysts are so positive about DV stock. The average price target is currently at $29.12 per share. This represents a <a href="https://ir.doubleverify.com/news-events/press-releases/detail/290/doubleverify-reports-first-quarter-2024-financial-results">potential upside of over 45%</a>, which typically spans for a 1-year period.



<h2>Zoom (ZM)</h2>



<div><img width="300" height="169" src="https://investorplace.com/wp-content/uploads/2021/08/zoom_zm_1600-300x169.jpg" alt="A woman sitting at a desk waves at a large number of people on the videoconferencing software Zoom (ZM)."><div>Source: Girts Ragelis / Shutterstock.com</div></div>Zoom (NASDAQ:<a href="https://investorplace.com/stock-quotes/zm-stock-quote/">ZM</a>) is an internet communications platform company. It is most known for its shared-screen meetings, which were prevalent during the pandemic. As the end of lockdowns brought a major decline in demand, Zoom <a href="https://www.zoom.com/en/ai-assistant/">now integrates AI</a> into its software. ZM provides a one-stop business solutions platform for arranging communications as companies navigate hybrid work environments.



The company is trading near pre-pandemic levels after its stock grew approximately ten-fold during the height of the pandemic. This means that ZM stock price is around 90% below its all-time record high. However, the company has since integrated AI and evolved into a tech company trading at a reasonable price-to-earnings <a href="https://www.multpl.com/s-p-500-pe-ratio">(P/E) ratio of 21.3x</a> for a tech. This is well below the S&amp;P 500 average of 29.3.



Analysts expect continued growth, making Zoom one of the stocks to buy with an average price target <a href="https://finance.yahoo.com/quote/ZM/">signaling over 30% upside</a>. Notably, Zoom has beaten consensus EPS consistently over the prior several earnings reports, with surprises ranging in double-digit territory.



<h2>Autodesk (ADSK)</h2>



<div><img width="300" height="169" src="https://investorplace.com/wp-content/uploads/2019/11/autodesk_adsk1600-300x169.jpg" alt="An Autodesk (ADSK) sign on an office in Toronto, Canada."><div>Source: JHVEPhoto / Shutterstock.com</div></div>Autodesk (NASDAQ:<a href="https://investorplace.com/stock-quotes/adsk-stock-quote/">ADSK</a>) is known for its AutoCAD software, which serves as the backbone of engineering and architectural development. 



The company is positioning itself as the <a href="https://investors.autodesk.com/static-files/8fbfa6e6-abf5-4dcb-9ace-383e7515a68a">leader in 3D AI</a> evolution through the use of generative AI to produce functional 3D shapes. In addition to AutoCAD, Autodesk offers other products like Fusion 360 and Maya that serve the construction, manufacturing and media industries.



While it applies AI to many industries, the company has not seen significant investor interest as its share price is up less than 5% for the year. However, Autodesk is particularly compelling because of its very low expenses due to a subscription-based business model. This results in a gross profit margin of 92%, with the largest cost being sales and marketing to acquire new customers.



Autodesk expects 10% revenue growth in 2024 through consistent growth that is not reliant on short-term AI trends. Also, analysts are optimistic about the ADSK stock, with <a href="https://finance.yahoo.com/quote/ADSK/analysis/">19 out of 23 recommending buying</a> Autodesk shares.



On the date of publication, Stavros Tousios did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com <a href="https://investorplace.com/corporate/investorplace-publishing-guidelines/">Publishing Guidelines</a>.



On the date of publication, the responsible editor did not have (either directly or indirectly) any positions in the securities mentioned in this article.
<div>Stavros Tousios, MBA, is the founder and chief analyst at Markets Untold. With expertise in FX, macros, equity analysis, and investment advisory, Stavros delivers investors strategic guidance and valuable insights.</div><h3>More From InvestorPlace</h3>
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