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This article was originally posted on FX Empire. Stock splits typically have led to oversized returns, says Bank of America. Look beyond the popular growth stocks. A healthy stream of income awaits. It's certainly understandable; getting more shares of your favorite company can bring a smile to the faces of even the most stoic among us. It's also true that companies that announce their intentions to split their stock tend to see their share prices run up as the split date approaches.
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Tesla tumbled on Elon Musk's "super bad" warning. Apple WWDC is due. CPI inflation data is out on Friday. All three major indexes finished the week lower. Within the next 15 years, people 65 or older are expected outnumber those under 18, for the first time in U. If oil keeps rising, it would be great news for energy stocks—and oil exploration stocks in particular. The metaverse offers added opportunities for a variety of tech stocks.
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Learn More. There wasn't any major news about Zoom before its Feb. Last month's drop was due entirely to negative market sentiment, especially among high-priced market darlings. Zoom had two financial press releases last month, and neither was particularly important for the stock's valuation.
The company announced the resolution of a legal dispute with RingCentral , then it announced a new product update for contact centers. That news was overall slightly positive. There was no reason to think that Zoom's financial fundamentals had changed meaningfully during the month. It became cheaper relative to sales and expected earnings. These dynamics become even more clear when Zoom's price chart is compared to peers RingCentral and Atlassian. All three stocks were clearly influenced by the same market sentiment.
Zoom's Feb. Meanwhile, the Federal Reserve enters a blackout period before its next policy-setting meeting later this month. Although big drops in the stock market can be unnerving and tug on investors' emotions, they're also, historically, an excellent time to put your money to work.
Corrections and bear markets tend to run their course relatively quickly, and all notable declines throughout history have eventually been erased by a bull market rally. From buying groceries to gasoline to automobiles, inflation has hammered Americans' purchasing power. In fact, the most well-known metric of inflation has soared to a four-decade high.
As the world faces war, an ongoing public health crisis, and social injustice, corporate executives have found themselves facing questions from their own employees about whether or not they plan to take a stand.
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Why is zoom stock dropping today. Stock Quote & Chart
Founded in by brothers Tom and David Gardner, The Motley Fool helps millions of people attain financial freedom through our website, podcasts, books, newspaper column, radio show, and premium investing services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources , and more. Learn More. They dig into the earnings report from Zoom ZM They've got news on a new partnership in the retail space. They also answer a listener's question about creating a new basket of stocks.
Finally, Bill is pitching a Christmas movie idea to Chris, and much more. To catch full episodes of all The Motley Fool's free podcasts, check out our podcast center. To get started investing, check out our quick-start guide to investing in stocks. A full transcript follows the video.
Chris Hill: It's Tuesday, December 1st. Welcome to MarketFoolery. I'm Chris Hill, with me today, Mr. Bill Barker. Good to see you. Hill: We've got retail news, we've got a question about the next potential war on something, and I'm not talking about, you know, global wars, I'm talking about, you know, like the War on Cash, that kind of thing.
Bill has a Christmas movie to pitch me. Let me say upfront, that's going to be in the second half of the show, we're going to try and keep tangents to the second half of the show. So, let's jump right in with Zoom Video. Third quarter results for Zoom Video were better than expected. Guidance for the fourth quarter was not what Wall Street wanted to hear.
Barker: Yeah, far from a death knell, I would say. I think it's basically confirmation that the floor underneath this stock is very, very, very secure or the floor under the company. The ceiling gets reduced as, you know, the vaccine news comes in better. There's been a lot of that lately. And that puts a little bit of a cap on the very near-term story of Zoom. And if people get to go back to their old lives, either eventually or sooner than eventually, that takes a little bit of the helium out of the Zoom stock, but, you know, [laughs] it's still a pretty richly valued stock.
Now, some of the guidance is a little bit cautious for , because Zoom, like the rest of us, doesn't really know what's going to happen. And so, the massive, rapid, profitable adoption of Zoom across so many industries and so many people is great, but will everybody stick around when they have the option not to. And Zoom doesn't yet know, it's optimistic that it's providing a service that's going to be entrenched in people's and businesses' lives to a great degree, but it can't make those promises.
I think that the company is known for exceeding expectations, and the guidance that it provides. As you point out, the guidance is more conservative than Wall Street was maybe hoping for.
So really, there is some inflated, you know, price earnings multiple on top of the really unbelievable growth. But, you know, it could get cut-in-half again from here, sure, but it would still quadruple, triple what it was last year.
This is similar to the recent partnership between Target and Ulta Beauty. Sephora is going to open hundreds of small beauty shops inside Kohl's stores. They're aiming for by next Fall and more than by That's ambitious, but this also seems like a smart move by Kohl's.
Barker: This is a smart move by Kohl's. Sephora is getting out of J. And I would say what this does is, we talk sometimes floors-and-ceilings, I mean, Kohl's was exploring what the floor was for its business back in March. So, it still had a bad year as a stock, even though it's more than tripled in that time period.
And if Sephora were the cure-all for a retailer's woes then J. Penney would still be thriving, right? It's leaving intelligently, as far as picking up and taking its business away from J. Penney and going into Kohl's, but Sephora is not on its own going to be any more able to make Kohl's a hot retail opportunity than it was able to do so for J. Nevertheless, Kohl's is a better operation than J. Penney, certainly hasn't gone through quite the disruptions that J.
Penney has, but you know, keep in mind, this is more shoring up the floor than exploring the ceiling. Hill: No. But it's absolutely something they need to do.
And it reminded me a little bit of the partnership they struck with Amazon , I'm talking about Kohl's, of course, to provide returns within Kohl's locations. This gives people one more reason to actually go into a Kohl's. Kohl's does curbside pickup, I don't see them promoting it in the same way that we've seen Target and Walmart , but those two businesses have certainly provided a blueprint for what Kohl's could be in the future.
I don't know. I'm not buying shares of Kohl's, but I don't think it's unreasonable that the stock is up today in the way that it is.
So, even though it was losing on the margins, it was buying back shares and keeping that earnings per share story reasonably consistent. It's not going to suffer quite as much as your J. Penney, Sears , highly mall-based stores like this, but it's still an uphill battle against Amazon. It's improved the online experience, but it's got a long way to go. Hill: Our email address is MarketFoolery Fool. Question from Sean Bryan in Harrisville, Utah, who writes, "I think there may come a time when people will look back and wonder how we justified eating animal meat, at least in the amounts that we do now?
If the War on Cash is followed by a "War on Meat," what are the first three stocks you would put in that basket? It's an interesting thought exercise, the obvious first stock is probably Beyond Meat , and if Impossible Foods goes public, they're in there as well.
Barker: Yeah, I guess it would depend, you know, if the war is being waged against the meat processors, right. You want to stay pretty far away from Smithfield, for instance, which is now owned by China.
But I think, obviously the Beyond Meats of the world are where you would, kind of, start with that. Is poultry being taken out too in this example? By the way, I'm totally willing to entertain the notion that meat consumption is going to suffer as people become, one, they've got more opportunities to get a meat-like taste from the Beyond Meats, but, you know, an increased exposure to the story of factory farms and things like that, I could certainly see society turning its back and looking back on our generation and how much meat we eat and how we produce it as being something that is fairly horrifying to the future generations.
Hill: Well, to answer your question, Sean writes "eating animal meat," chickens are animals, so, yeah, I guess [laughs] poultry is part of that as well.
Barker: Yeah. Whereas poultry often, and has picked up from peoples moving away for purely health reasons, away from red meat, boy!
Barker: Yeah, I do think these are trends that need to be considered. And I think Tyson Foods is one of those things that I wouldn't put all of my money into or Hormel or any of those. Hill: I also think it's a trend that needs to be considered, I don't think, for investors, this is as lucrative a trend, both, in the near-term or even in the long-term, as the War on Cash.
And likely to be a much bloodier war too. I mean, beef and the production of it are about as central to the iconography of the American experience as you can get. If you're like me, the fact that you have never driven a herd of cattle to the slaughterhouse, it's probably something that you consider a failure at a certain level, as an American man. Don't you feel at some level, like, you're supposed to have done that by now? It may not be a level you could even put words into; I see you struggling, but you know what I'm talking about.
Hill: I think you're talking about the movie City Slickers , which is the only passing thought I ever had of like, I wonder what that would be like. And then by the end of the movie, I thought, well, that was a fun movie, but, no, I'm not interested in doing that.
Barker: No, no, no, not as a vacation, as a, you know, you've got to do this or the ranch is going to have to be sold, like this level of being tied to the land and the animals and the production of your own food and all that, in a way that -- look, you're a big movie fan, you've watched your fair share of westerns, I mean, I'm not talking City Slickers level.
Hill: Yeah, my fair share of westerns is probably smaller than other people's fair share of westerns. Barker: But you know, that this is laced into the American psyche. And if you're going to take beef away, boy! Hill: Well!
And to go back to the War on Cash, how much resistance is cash putting up? Is the U. Treasury [laughs] really Treasury Department?
I'm going to say, no. Whereas to your point, yeah, the beef industry, the poultry industry, yeah, they're going to put up a fight. Hill: Great commercial. And the fact that you have them voiced by people like Sam Elliott and Robert Mitchum, I mean, two of the all-time great voices. So, yeah, those are -- you know, again, [laughs] the U. Treasury Department is not running second commercials on television or second pre-roll ads on YouTube to be, like, "Cash.
It's What's In Your Wallet" like, no, they're not doing that. Barker: Right.
Stock Quote & Chart | Zoom Video Communications, Inc.
Why is zoom stock dropping today.ZM Stock Alert: 8 Reasons Why Zoom Video Is Tumbling Today
Apple Inc. AAPL 3. AMZN 2. Teladoc Health Inc. TDOC 4. NVDA 4. Docusign Inc. DOCU 4. Netflix Inc. NFLX 2. QQQ 2. Snowflake Inc. SNOW 6. Block Inc. ARKK 5. Defense World. Daiwa Securities Group Inc. Seeking Alpha. Yahoo Finance. Financial performance. Stock Ownership of a fraction of a corporation and the ссылка на подробности to claim a share of the corporation's assets and profits equal to the amount of stock owned.
Previous close. The last closing price. Day range. The difference between the high and low prices over the past you are connected to audio. Year range. The difference between the high and low prices over the past 52 weeks. Market cap. A valuation method that multiplies the price of a company's stock by the total number of outstanding shares.
The average number of shares traded each day why is zoom stock dropping today the past 30 days. The ratio of current share price to trailing twelve month EPS that signals if the price is high or low compared to other stocks. Dividend yield.
The ratio of annual dividend to current share price that estimates the dividend return of a stock. Primary exchange. Listed exchange for this security. Zoom Video Communications, Inc. It provides videotelephony and online chat services through a cloud-based peer-to-peer software platform used for video communications, messaging, voice calls, conference rooms for video meetings, virtual events and contact centers, and offers an open platform allowing third-party developers to build custom applications on its unified communications platform.
Eric Yuan, a former Cisco why is zoom stock dropping today and executive, founded Zoom inand launched its software in The company first became profitable inand completed an initial public offering that year. Beginning in earlyZoom's software usage saw a remarkable global increase after quarantine measures why is zoom stock dropping today adopted in response to the COVID pandemic.
Its software products have faced public and media scrutiny related to security and privacy issues. Eric Yuan. San Jose, California United States. Discover why is zoom stock dropping today. You may be interested in info This list is generated from recent searches, followed securities, and other activity. Google is not an investment zoom meeting join from browser - zoom meeting join from browser: nor is it a financial adviser and expresses no view, recommendation or opinion with respect to any of the companies included in this list or any securities issued by those companies.
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