Entering text into the input field will update the search result below

Ooma: Get Connected

Mar. 09, 2020 3:55 PM ETOoma, Inc. (OOMA)3 Comments
Graham Grieder profile picture
Graham Grieder


  • Ooma broke out 10% on Q4 earnings and fiscal year 2020 results.
  • Positive results pushed the company to break out of a 4 month trading range while the rest of the market is correcting.
  • Ooma is expecting continued growth into 2021.

Ooma (NYSE:OOMA) is a name that not everyone will know about, but you should be paying attention too. Ooma is one of the few stocks that is holding well, and net positive since this market correction began on February 20th. While the S&P 500 (SPY) is down 12%, Ooma is up 11%. Yes, this is mostly due to the earnings release, but take that away and the company is still up 1% since the market correction. Ooma is typically quite a bit more volatile than your typical US Telecom, but even after a poor 2019 where the stock was down roughly 6%, the stock has still massively outperformed the industry and the market over the last 3 years as you can see below. As the stock breaks out of the range it has been stuck in, followed with a solid fundamental forecast, now is the time to buy Ooma.(Source: Simplywall.st)

What is Ooma?

Ooma is an American telecommunications company based in Silicon Valley. They offer voice over IP (OTC:VOIP) calling using an Internet connection to support a range of communication solutions for small business, home, and mobile users. In 2015, Ooma was named one of the fastest-growing private companies by the Silicon Valley Business Journal. Then the company went public in July 2015, and the IPO did not go over very well as the company fell as much as 56% into early 2016. The company has 2 business models: Ooma Telo and Ooma Office. In short, Ooma Telo is designed to provide unlimited, free VoIP calls within the United States and features Bluetooth integration and HD voice. Ooma Office consists of a cloud-based phone system including business applications such as conferencing, virtual fax extensions and extension dialing. (Source: Google)

How Were The Results?

Looking first at Q4 results, the company posted

This article was written by

Graham Grieder profile picture
A finance graduate from the University of Alberta. I have developed a trend-following strategy backed by solid fundamentals. Removing emotion from the situation is the hardest, yet most important lesson to learn.-"I will tell you how to become rich. Close the doors. Be fearful when others are greedy. Be greedy when others are fearful." - Warren Buffett

Analyst’s Disclosure: I am/we are long OOMA. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.

Recommended For You

To ensure this doesn’t happen in the future, please enable Javascript and cookies in your browser.
Is this happening to you frequently? Please report it on our feedback forum.
If you have an ad-blocker enabled you may be blocked from proceeding. Please disable your ad-blocker and refresh.