Zoom and Its Profits Face Analyst Scrutiny After 121% Rally
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Zoom Video Communications Inc., whose shares have more than doubled since last month’s initial public offering, will come under fresh scrutiny on Monday when analysts from Wall Street banks that underwrote the company’s April initial public offering are set to initiate coverage.
Valuation is likely to be a central focus of analyst comments as Zoom is the best-performing IPO of the year among companies that raised more than $300 million. Shares of the cloud-based meeting technology company are trading at more than 400 times projected earnings, according to Bloomberg data. The stock rose another 5.9% percent on Friday to close at a record $79.63.