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Zuora: Tremendous Value Play In This Subscription Enabler

Jan. 03, 2022 10:26 PM ETZuora, Inc. (ZUO)13 Comments
Gary Alexander profile picture
Gary Alexander


  • After rallying more than 30% in 2021, shares of Zuora still have plenty of upside in the new year.
  • Zuora benefits from being a value-oriented software growth stock, while investors are running away from more richly valued peers.
  • The company's ERP software is aimed specifically at subscription businesses. Revenue growth has been accelerating nicely over the past few quarters.
  • Valuation looks modest at just ~5x 2022 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 »
Zuora headquarters in Silicon Valley

Sundry Photography/iStock Editorial via Getty Images

It's 2022 now, and as I've been writing over the past few months since the tech/growth stock correction began, investors should begin the year by focusing on rotating their portfolios to value. That doesn't mean let go of all tech positions: rather, focus on tech

For a live pulse of how tech stock valuations are moving, as well as exclusive in-depth ideas and direct access to Gary Alexander, subscribe to the Daily Tech DownloadHighly curated focus list has consistently netted winning trades of 40%+.

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 a beneficial long position in the shares of ZUO either through stock ownership, options, or other derivatives. 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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