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ZoomInfo Technologies: A Bubble Waiting To Burst

May 05, 2021 7:06 AM ETZoomInfo Technologies Inc. (ZI)9 Comments
Gary Alexander profile picture
Gary Alexander


  • ZoomInfo has been in correction mode since February, declining ~25% from peaks.
  • The company slid a further ~10% after its most recent fiscal Q1 earnings report.
  • Though ZoomInfo continues to grow at a robust ~50% y/y pace and tack on big-name customers, sliding profitability is a question.
  • Another issue is the fact that ZoomInfo has ample competitors and it's unclear how unique ZoomInfo's product is versus other lead-generation and management systems.
  • ZoomInfo is still an incredibly expensive stock at ~30x forward revenue.
  • Looking for a helping hand in the market? Members of Daily Tech Download get exclusive ideas and guidance to navigate any climate. Learn More »
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The sky isn't falling just yet, but the shift in appetite toward growth and tech stocks is clearly being felt across the markets. This week, expensive tech names took a fresh leg down, including ZoomInfo Technologies (NASDAQ:ZI) - a software

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This article was written by

Gary Alexander profile picture
With combined experience of covering technology companies on Wall Street and working in Silicon Valley, and serving as an outside adviser to several seed-round startups, Gary Alexander has exposure to many of the themes shaping the industry today. He has been a regular contributor on Seeking Alpha since 2017. He has been quoted in many web publications and his articles are syndicated to company pages in popular trading apps like Robinhood.

Analyst’s Disclosure: I/we have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours. 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.

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