Shares of Zoom Video Communications Inc.
ZM,
-0.95%
fell 0.9% in afternoon trading Thursday, and has now tumbled 10.7% amid a seven-day losing streak. Analyst Matthew Harrigan at Benchmark initiated coverage of the videoconferencing company with a hold rating, saying current stock prices "already implies heady growth" in the company's total addressable market (TAM) and unified communications as a service (UCaaS) market share. The stock is up 5.9% year to date, after rocketing 396% in 2020 as the company benefited from the COVID-19 pandemic-induced work-from-home trend. In comparison, the S&P 500 has gained 15.9% so far this year after rallying 16.3% last year. Harrigan said he acknowledges that the company "may defy skeptics" by boosting market share as it broadens its business through its increasingly successful Zoom Phone. "However, immediate stock action hinges on momentum and sentiment, with consensus forecasts and even guidance providing a feeble valuation backbone," Harrigan wrote in a note to clients.