5 Best Websites To Research Stocks

3. Seeking Alpha

Seeking Alpha is an Israel-based crowd-sourced company that provides financial commentary and analysis. Seeking Alpha is an equity research platform that publishes research and articles by industry experts on stocks, exchange traded funds, and investment strategies. The company was founded in 2004 by David Jackson, a former Wall Street analyst. 

On August 22, Seeking Alpha reported that Zoom Video Communications, Inc. (NASDAQ:ZM) stock dropped about 8% as the company posted a third-quarter outlook that suggests its COVID-related exponential growth may be slowing down. Citi analyst Tyler Radke downgraded Zoom Video Communications, Inc. (NASDAQ:ZM) to ‘Sell’ from ‘Neutral’ with a $91 price target on August 16. He sees new hindrances in Zoom Video Communications, Inc. (NASDAQ:ZM) sustaining growth, including higher competition from Microsoft Teams and the macro backdrop impacting small to medium-sized firms. He made “significant cuts” to his estimates for Zoom Video Communications, Inc. (NASDAQ:ZM).

According to Insider Monkey’s data, 44 hedge funds were long Zoom Video Communications, Inc. (NASDAQ:ZM) at the end of Q2, compared to 43 funds in the prior quarter. ARK Investment Management is the largest stakeholder of the company, with 9.5 million shares worth over $1 billion. 

Here is what Horos Asset Management had to say about Zoom Video Communications, Inc. (NASDAQ:ZM) in its Q1 2022 investor letter:

“What about the other asset class that has attracted the most attention from the investment community in recent times? Here we can distinguish three major groups. First, those companies without earnings that had convinced investors of their great future growth prospects, pushing up their valuations to irrational levels. A clear example of this, which we mentioned almost two years ago (see here) is Zoom Video Communications (“Zoom”), whose market cap exceeded that of companies such as IBM or came close to that of Cisco Systems. Well, from the time we wrote about this odd situation until today, Zoom shares have collapsed nearly 80%.

Therefore, if interest rates rise (or are expected to rise), company valuations are negatively impacted. This is especially true for those businesses that generate little cash today and the market expects them to generate a lot of cash in the future. Hence the severe losses in companies that promised a lot of cash generation in the future (such as Zoom).”