Can the Zoom Dip Get Even Worse?
Key takeaways
- ZM NVDA Zoom Communications (NASDAQ: ZM) dropped by more than 20% over the past month.
- Zoom commanded a P/E ratio in the 20s for most of 2025, but growth rates have also shrunk over the years.
- In 2009, a "Double Down" signal flashed for a little-known chipmaker called Nvidia.
ZM NVDA Zoom Communications (NASDAQ: ZM) dropped by more than 20% over the past month. The pandemic bubble popped for the video conferencing company in 2021, and it looks like the stock will never reclaim those levels. The current drop doesn t seem to be over. Here s why investors shouldn t buy Zoom on the dip.
A 12.7 P/E ratio looks attractive on the surface. Zoom commanded a P/E ratio in the 20s for most of 2025, but growth rates have also shrunk over the years. Zoom s revenue has a five-year compound annual growth rate (CAGR) of 12.9%, but only a 3.5% CAGR over the past three years.
Missed Nvidia in 2009? This Rare Signal Is Flashing Again. In 2009, a "Double Down" signal flashed for a little-known chipmaker called Nvidia. For the first time in years, that same "Total Conviction" signal is flashing for a company 1/100th the size of Nvidia. Continue »