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There's also a VGM Score ('V' for Value, 'G' for Growth and 'M' for Momentum), which combines the weighted average of the individual style scores into one score. The scores are based on the trading styles of Value, Growth, and Momentum.
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It allows the user to better focus on the stocks that are the best fit for his or her personal trading style. However, the stock is still pricey and will remain volatile - so it isn't an ideal investment for queasy investors.The Style Scores are a complementary set of indicators to use alongside the Zacks Rank. Investors who expect the remote work trend to continue after the pandemic ends should accumulate some shares of Zoom after its post-earnings drop. I believe Zoom still has room to grow since it clearly disrupted a fragmented market filled with mature and complacent players. Those robust growth rates indicate Zoom remains a popular alternative to more complicated enterprise-oriented platforms like Cisco's Webex and Microsoft Teams, and its existing enterprise users are still upgrading to higher tiers and adopting more of its services. Its number of customers with more than 10 employees grew 36% year over year to approximately 504,900, while its 12-month net dollar expansion rate among those customers remained above 130% for the 13th straight quarter. Zoom ended the second quarter with 2,278 customers contributing more than $100,000 in revenue over the past 12 months, which represented 131% growth from a year ago. Zoom's margins should either remain stable or expand in a post-pandemic market, since many of its new users during the pandemic stayed on free plans instead of upgrading to paid tiers.ĭuring the latest conference call, CFO Kelly Steckelberg said free users accounted for "about 30% of our minute usage today as compared to like 10% pre-pandemic." Reducing its dependence on those free users and pivoting toward larger enterprise customers could stabilize Zoom's long-term growth. How Zoom's business could stabilize after the pandemic Those strategies could help Zoom shake off its reputation as a one-trick pony and support its long-term evolution into a cloud-based communications giant. That expansion is generating plenty of cash for the expansion of its sales teams, investments in new products and services like Zoom Phone and Zoom Events, and the integration of its upcoming purchase of the cloud contact center provider Five9 ( FIVN 0.47%). Zoom's operating margins are expanding as its scale improves and its data center capacity rises.
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