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Why Is Zoom (ZM) Down 5.6% Since Last Earnings Report?

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A month has gone by since the last earnings report for Zoom Communications (ZM - Free Report) . Shares have lost about 5.6% in that time frame, underperforming the S&P 500.

Will the recent negative trend continue leading up to its next earnings release, or is Zoom due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important drivers.

How Have Estimates Been Moving Since Then?

It turns out, fresh estimates have trended upward during the past month.

The consensus estimate has shifted 5.67% due to these changes.

VGM Scores

Currently, Zoom has a strong Growth Score of A, though it is lagging a bit on the Momentum Score front with a B. Charting a somewhat similar path, the stock was allocated a grade of C on the value side, putting it in the middle 20% for this investment strategy.

Overall, the stock has an aggregate VGM Score of B. If you aren't focused on one strategy, this score is the one you should be interested in.

Outlook

Estimates have been broadly trending upward for the stock, and the magnitude of these revisions looks promising. It comes with little surprise Zoom has a Zacks Rank #2 (Buy). We expect an above average return from the stock in the next few months.

Performance of an Industry Player

Zoom belongs to the Zacks Internet - Software industry. Another stock from the same industry, Match Group (MTCH - Free Report) , has gained 2.9% over the past month. More than a month has passed since the company reported results for the quarter ended March 2025.

Match Group reported revenues of $831.18 million in the last reported quarter, representing a year-over-year change of -3.3%. EPS of $0.67 for the same period compares with $0.44 a year ago.

For the current quarter, Match Group is expected to post earnings of $0.79 per share, indicating a change of +64.6% from the year-ago quarter. The Zacks Consensus Estimate remained unchanged over the last 30 days.

The overall direction and magnitude of estimate revisions translate into a Zacks Rank #3 (Hold) for Match Group. Also, the stock has a VGM Score of A.


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