|Bid||0.00 x 3200|
|Ask||0.00 x 1000|
|Day's Range||61.02 - 64.60|
|52 Week Range||59.94 - 107.34|
|Beta (3Y Monthly)||N/A|
|PE Ratio (TTM)||2,137.93|
|Forward Dividend & Yield||N/A (N/A)|
|1y Target Est||92.50|
(Bloomberg) -- An ugly two months for software stocks is getting worse, and bullish investors are looking to earnings reports this week from ServiceNow Inc. and Microsoft Corp. to stem the tide.Zoom Video Communications Inc. and ServiceNow fell more than 5% on Tuesday, each extending losing streaks to a fifth consecutive day. The group has been under renewed pressure since last week, despite an earnings report from Atlassian Corp. that was praised by analysts. Both ServiceNow and Microsoft are due to report Wednesday afternoon.“We all know there’s some frothiness in some of these specialty software as a service companies,” said Jason Benowitz, a senior portfolio manager with Roosevelt Investment Group. “I’m interested in how the market will react when Microsoft reports, because I think everyone is expecting results to be strong.”Software valuations have come under the microscope amid concerns about whether their break-neck growth is sustainable in a slowing economy and a renewed focus on profitability in the wake of WeWork’s initial public offering stumble. A Goldman Sachs basket of expensive software stocks has fallen 28% from a July peak, with nearly all of that decline coming since the start of September.Other big decliners on Tuesday included Slack Technologies Inc. and Alteryx Inc., which both fell more than 7%, while Coupa Software Inc.has lost 24% since the beginning of last week.To contact the reporter on this story: Jeran Wittenstein in San Francisco at email@example.comTo contact the editors responsible for this story: Catherine Larkin at firstname.lastname@example.org, Courtney DentchFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
A Rosenblatt analyst says that RingCentral may speed up plans to launch its own video product, Bloomberg reported.
Zoom Video Communications (ZM) closed at $66.08 in the latest trading session, marking a -1.42% move from the prior day.
Workday Inc. shares are off more than 11% in Wednesday morning trading and pacing the declining software sector after the company held its user conference and analyst day. Several analysts flagged the company's commentary on its human-capital management product, which Workday expects to end the year with 20% growth, marking a slowdown. "Financials will need to continue to grow at healthy rates to offset this," wrote Jefferies analyst Brent Thill, though he said the attachment rate of financials to the core product is relatively low, suggesting opportunity. While Workday also announced some new products, Macquarie analyst Sarah Hindlian questioned the revenue potential for some of them. "For example, blockchain-enabled Workday Credentials allows verification of credentials such as employment and educational history," she wrote. "We think this is likely a limited market opportunity." Another issue for Workday is that its chief executive commented that the company has "definitely seen some delays" in deal activity, but Workday doesn't expect these to impact the business or result in cancellations. Other software stocks are getting hit in Wednesday trading as well, including Slack Technologies Inc. , which was the subject of a price-target cut at Morgan Stanley, and Adobe Systems Inc. , which received a Citi Research downgrade. Shares of Okta Inc. , Splunk Inc. , Zoom Video Communications Inc. , and Atlassian Corp. PLC are also down. The iShares Expanded Tech-Software ETF is off 2.3%, while the S&P 500 has lost 0.1%.
(Bloomberg) -- Wall Street’s tepid reception to highly-anticipated IPOs from Peloton Interactive Inc. and SmileDirectClub Inc. shows rising anxiety that a recession could be on the horizon, analysts say.The struggles for the home exercise company, the dental aligner maker, and ride-hailing peers Lyft Inc. and Uber Technologies Inc. may give a glimpse into how investors are valuing their services as well as what a global slowdown could mean for the consumer-dependent stocks.“The weakest link is retail. Companies that sell to –- or stocks that are bought by -– individual retail buyers will feel the effects soonest and most,” said Rett Wallace, CEO of Triton Research Inc.Weakness in these mega-IPOs has partially been driven by a rotation toward more defensive business models, MKM analyst Rohit Kulkarni said in a telephone interview. While Uber and Lyft could benefit from a spike in part-time drivers, demand for their services and Peloton’s subscription numbers may take a hit if consumers have less money to spend, he said.“Consumer companies such as Uber, Lyft and Peloton will probably feel a more near-term impact of any potential slowdown in the macroeconomic space,” Kulkarni said. Traders could shun their monthly subscriptions or pay-as-you-go models, if slowing revenue lengthens their path to profitability.The S&P 500’s brief climb above 3,000 for the first time in three weeks provided a lift for some of the beaten-down companies on Tuesday. Peloton had its best session, rising 9.2% off a record low, while SmileDirectClub bounced 6.3% to trade back above $10. But both stocks are still trading well below their offering prices.Both had also set the terms for their IPOs in September, shortly after the spread between 3- and 10-year Treasuries bottomed out in August, indicating a higher probability of a recession. According to data compiled by Bloomberg, the probability of a recession had then peaked at nearly 40%.SmileDirectClub’s more than 50% decline from its September offering has placed it among the year’s worst performers. An analyst who follows the company closely said in an email that he is impressed with its business model but acknowledged that “it certainly will have exposure to an economic downturn given the discretionary nature of orthodontics.”Some of the best-performing IPOs show the inverse. Application software companies have seen their stock prices surge as investors favored firms that face businesses instead of individuals. Zoom Video Communications Inc. and CrowdStrike Holdings Inc. are a few that come to mind when surveying the landscape of red-hot companies whose business models might be more sustainable.While Beyond Meat Inc. remains the year’s best performing IPO, with a more than 385% gain since going public in May, it has cooled off from its summer sizzle. The stock has lost almost half its value from a July 26 peak, shedding almost $7 billion in value.Now, the challenge for investors, according to Kulkarni, is valuing large, unprofitable companies at just the time when the global economy may be headed for a slowdown, and maybe even recession.To contact the reporters on this story: Bailey Lipschultz in New York at email@example.com;Drew Singer in New York at firstname.lastname@example.orgTo contact the editors responsible for this story: Catherine Larkin at email@example.com, Jennifer Bissell-Linsk, Scott SchnipperFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
Zoom Video Communications, Inc. (ZM) today announces at Zoomtopia 2019 major expansions to its video-first unified communications platform, deep integrations and partnerships to grow its ecosystem, and the laying of a foundation for empowered communications. “We are proud that everything we’ve built at Zoom - from our core video architecture to our UI - is designed to make your meetings, as our customers say, ‘Just work,’” said Oded Gal, Chief Product Officer for Zoom. At Zoom, we are about empowering people to do more with video communications.
Today, Emergence Capital, Horizons Ventures, Maven Ventures, and Sequoia Capital – all investors in Zoom Video Communications, Inc. (ZM) – together announced at Zoomtopia 2019 a joint pitch competition for startups to develop on the Zoom platform. Up to 10 finalists will receive the opportunity to pitch partners at Emergence Capital, Horizons Ventures, Maven Ventures, and Sequoia.
Shares of Pinterest Inc. sank 4.5% toward a 4 1/2-month low in morning trading Tuesday, as the "lock-up period" following the online bulletin-board company's initial public offering has expired. Despite the selloff, the stock was still trading 30% above the $19 IPO price. The company went public on April 18, and the company said executive officers, directors and holders of "substantially all of our common stock" had entered into "lock-up" agreements to net sell any stock for 180 days. Meanwhile, Zoom Video Communications Inc. shares shed 2.0%, as the videoconferencing company also went public 180 days ago on April 18. Pinterest's stock has slipped 7.2% over the past three months and Zoom Video shares have tumbled 30.4%, while the Renaissance IPO ETF has lost 13.2% and the S&P 500 has eased 0.6%.
Zoom Video Communications has been on a bit of a cold streak lately, but there might be light at the end of the tunnel for this overlooked stock.
Is Zoom Video Communications, Inc. (NASDAQ:ZM) a good place to invest some of your money right now? We can gain invaluable insight to help us answer that question by studying the investment trends of top investors, who employ world-class Ivy League graduates, who are given immense resources and industry contacts to put their financial expertise […]
Zoom Video is trading significantly higher than 2019's other IPO debutants. Zoom stock had an offer price of $36 and is trading at $73.52—104% higher.
Facebook said its Workplace platform for businesses collaboration, with 3 million paid users, will now work on its Portal video chat devices, which caused Zoom Video stock to fall.
Facebook's Portal video chat devices will now handle the company's Workplace service for businesses, Facebook announced at its Flow conference.
Stephen Curry, who formally announced his investment arm SC30 at TechCrunch Disrupt last week, is not aligning himself with CBD whatsoever.
It's been about four years since Square (NYSE:SQ) came public. At the time of the deal, there was mostly a chilly reception from investors. Square stock priced at $9, which was below the range of $11 and $13. The valuation was actually lower than the company's prior round of venture funding.Source: Shutterstock Interestingly, recently SQ stock is undergoing a similar period of skepticism (which, by the way, has come after a powerful bull move for the past couple years). During the past few months, the shares have gone from $82 to $59. The result is that the year-to-date return on Square stock is only about 7%. In fact, for the past 12 months, the shares have sustained a 39% loss.It's true that many tech stocks, especially the high-fliers, have come under pressure as well. Just look at the major drops in companies like Zoom Video Communications (NASDAQ:ZM) and Okta (NASDAQ:OKTA).InvestorPlace - Stock Market News, Stock Advice & Trading TipsBut hey, when it comes to tech stocks, there are periodic swoons. Yet they have been temporary - and yes, good buying opportunities. * 7 Important IPO Stocks to Watch for the Long Run So might this mean that SQ stock is a good opportunity right now? Well, there's little doubt that the company has a solid platform and is a leader in the fast-growing payments market.All this has come from a fairly simple application, launched in 2009, that involved a credit card reader that connected to an Apple (NASDAQ:AAPL) smartphone or Alphabet (NASDAQ:GOOGL, NASDAQ:GOOG) Android device.From there, CEO Jack Dorsey was aggressive in expanding the platform into a myriad of categories like payroll, gift cards, loyalty programs, marketing services, eCommerce, business loans and so on. The result is that Square has become a very sticky service.Although, the move into loans may be having the most impact. "The company is getting a piece of the origination fee, which is pure profit," said Chris Ligan, who is the VP of Acquisitions for point-of-sale credit card processor Auric. In all, SQ has loaned customers about $5 billion. The Market and Square StockThe market opportunity for payments is enormous - estimated at over $100 trillion on a global basis. But this means there is much competition coming into the segment. Of course, there are startups popping up as the venture capital markets are awash with huge amounts of money.But even traditional financial institutions are leveraging their own platforms and customer bases to get a piece of the opportunity. Consider that Bank of America (NYSE:BAC), BB&T (NYSE:BBT), Capital One (NYSE:COF), JPMorgan (NYSE:JPM), PNC Bank (NYSE:PNC), US Bank (NYSE:USB) and Wells Fargo (NYSE:WFC) are the backers of a payments app, called Zelle, which has been getting lots of traction."What ends up happening is as concepts get commoditized, it is tough to remain relevant," said Zafin executive vice president of global partner growth and sales strategy, Meenaz Sunderji. Bottom Line on Square StockEven with the drop-off in the share price, the valuation on SQ stock is still far from cheap. Consider that the forward price-to-earnings multiple is about 54X. In other words, Wall Street is still expecting quite a bit of growth on the top line.But this could be tough to maintain. Besides the emerging competition and the risks of commoditization, SQ also is vulnerable to a slowdown in the U.S. economy (and yes, the recent data does look ominous). Let's face it, the company's customer base is primarily made up of small businesses, and they usually get hit the hardest when the economy goes into recession.So in light of all this, it's probably best to avoid Square stock for now.Tom Taulli is the author of the book, Artificial Intelligence Basics: A Non-Technical Introduction. Follow him on Twitter at @ttaulli. As of this writing, he did not hold a position in any of the aforementioned securities. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 7 Important IPO Stocks to Watch for the Long Run * 7 High Volatility Stocks to Buy as the Market Rebounds * 7 Dow Jones Industrial Average Stocks to Sell The post Things Bleak for Square Stock in a Slowing Economy appeared first on InvestorPlace.
It's been a rough year for the IPO market. While most promising unicorns have sputtered out of the gate, one analyst has a reason to be optimistic going forward.
One of newly public firms’ favorite tools to boost executives’ control may also be a long-term liability, according to Goldman Sachs.
SmileDirectClub slid 28% on its first day of trading, adding to the list of disappointing IPOs. Yahoo Finance’s Brian Sozzi and Alexis Christoforous discuss what’s next for the IPO market with EY's America's IPO Expert Jackie Kelley.