Like many other pandemic winners, Zoom Video Communications (NASDAQ:ZM) stock is a pandemic darling that made the most of the moment.

The growth story of Zoom is like no other as it became a household name in no time.

It may not be correct to say that the pandemic is gone. It is very much here and the demand for video conferencing services like Zoom is also here to stay.

The company saw a huge spike in users during the pandemic and ZM stock went as high as $559 in October 2020.

But it has been declining since then and is trading much lower, at $220 today. The stock has dropped more than 30% over the past six months and I think the trend will continue.

ZM stock may see a further decline in the coming months and it is best to wait for it to drop to the lowest before betting your money on it. 

Zoom’s Services Continue to Remain in Demand

We may have started returning to the office but a lot of us continue to use the services of Zoom. I regularly use it for personal and business purposes.

The pandemic introduced Zoom in my life but it is here to stay. Business meetings over a video connection have become acceptable and the company continues to add new features that help meet the changing needs of consumers. 

Financially, the company is delivering exceptional numbers. The metrics have improved and the stock has become more affordable than it was last year.

It recently reported better than expected earnings for the third quarter with earnings per share of $1.11 and revenue of $1.05 billion. There was a 35% rise in revenue from the same quarter last year.

The net income hit $340 million, a 71% year-over-year jump. It has ample cash on hand which will allow the company to add new products and services to its portfolio or hunt for a business to diversify. However, ZM stock has been falling since the results. 

For the next quarter, the company expects adjusted earnings between $1.06 to $1.07 per share and revenue around $1.051 billion to $1.053 billion.

When the pandemic started, Zoom was a solid contender for businesses but with time, there was competition and users started considering other alternatives. This led to a dip in the user base.

If you compare the growth of the company with the pandemic year, you will notice a huge dip.

This is the slowest growth in the past four years. But all is not lost. The company has more than 2,500 customers who are spending close to $100,000 annually. 

Plus, the hybrid work model will help Zoom attract businesses and users throughout the coming quarter.

The company is in demand and has the potential to cater to the needs of customers. Keep the pandemic aside and look at Zoom. 

The Bottom Line on ZM Stock

Zoom is a pandemic darling but the end of lockdown restrictions and return to work has had a huge impact on its business.

However, I would like to believe that the company is more than that. My colleague at InvestorPlace, Joel Baglole. wrote about ZM stock hitting the bottom at $286 but the stock is not done yet.

I think it will continue to fall in the coming weeks until it hits rock bottom and it will then find a breakthrough.

The business is good and the fundamentals are strong. Zoom will continue to remain in demand for the coming year and its service will serve businesses and individuals.

Do not expect it to hit the same level as it did during the pandemic. You may not see a similar rise anytime soon but buying the stock at its rock bottom will allow you to enjoy solid returns in the long run. For now, wait and watch the dip in the stock. 

On the date of publication, Vandita Jadeja did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.

Vandita Jadeja is a CPA and a freelance financial copywriter who loves to read and write about stocks. She believes in buying and holding for long-term gains. Her knowledge of words and numbers helps her write clear stock analysis.