Here's Why Analysts Are Bullish On Zoom Despite Selloff

Analysts believe that the Zoom Video Communications, Inc ZM selloff may have gone too far.
Benchmark Co's Matthew Harrigan and other analysts saw the video-conferencing company as well-positioned as a hybrid work services provider after riding the stay-at-home boom.
Analysts like Harrigan think Zoom's product offerings can make it a post-Covid winner as more employees seek flexible work arrangements.
Morgan Stanley said renewals for contracts signed in the early stages of Covid will have passed for another year in the March/April timeframe, which will provide a better view into enterprise customer retention.
Despite the shift into a more hybrid working environment, consumers will need a reliable platform for virtual communication to supplement in-person meetings, with a strong sentiment in Zoom's favor already from a user perspective, an analyst said.
After a more than 12-fold rise in sales in its last three fiscal years, analysts expect a 12% increase in the first quarter.
They see scope for a rally with the stock has cratered 85% from its 2020 pandemic peak, wiping out $135 billion of market value.
Most major companies now offer employees the flexibility to work from the office and home, acting as a tailwind for Zoom. Apple Inc's AAPL delay in resuming full-time office served as the cherry on the cake.
Contrastingly, Netflix, Inc NFLX failed to sustain a massive pull forward in new customers during the pandemic and shocked the Street with its first decline in subscribers in over a decade.
Price Action: ZM shares traded lower by 0.70% at $89.11 on the last check Monday.

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