A pandemic darling stock, Zoom (NASDAQ:ZM) is having a great day as it unveils new products. Despite recently declining more than 80% from its 52-week high, ZM stock is soaring higher today, up 8% at the time of writing on another mixed day in the markets.
This move is certainly a welcome surprise to buy-and-hold investors who have stuck with Zoom. This video-conferencing technology company has seen growth stagnate somewhat following a rapid surge as the pandemic forced a new work from home culture on us. While many companies have moved back to the office, Zoom’s platform has become an integral piece of the corporate environment. Accordingly, at these levels, some value investors have started to get excited.
However, today’s rise in ZM stock appears to be about more than just dip-buying among value investors. Let’s dive into what’s getting investors excited about Zoom again.
ZM Stock Surges Higher on New Platform Innovations
Today, Zoom announced interesting platform innovations the market seems to like. Among the innovations Zoom is now promoting is what the company is calling Zoom IQ for Sales. This tool is aimed at allowing business customers to optimize employee experiences from the office or home.
This work-from-anywhere lifestyle is becoming embedded in many companies’ cultures. While some companies are mandating employees return to the office, many are choosing the hybrid route. Employee satisfaction from ditching the commute and being able to easily handle household issues has offset concerns around productivity. In fact, studies have shown that employees work more hours when at home, likely due to saving commute time.
This latest innovation from Zoom follows previous moves into Zoom Phone and Zoom Events. The company appears to be building out a suite of products for business customers, with impressive uptake.
I think ZM stock looks interesting at these levels, relative to its cash flow growth potential. Should the company fully capitalize on these new business verticals, this is a stock that could be very cheap right now. Today, the market seems to agree.
On the date of publication, Chris MacDonald 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 Publishing Guidelines.
