Software company that provides customer service Zendesk Inc (NYSE:) has been making efforts to expand its operations. (NYSE:) is making strides to grow its operations. However, investor skepticism over its $4 billion stock deal to takeover Momentive Global—and an ongoing investigation connected to the merger—are obscuring the company’s growth prospects. In addition, given the company’s poor profitability and lofty valuations, there is a question as to whether the stock will be able to rebound from its recent price decline? Read ahead to learn more.San Francisco-based software development company Zendesk Inc. (ZEN) offers software-as-a-service (SaaS) to companies in North America, Latin America, Europe, the Middle East, Africa, and the Asia Pacific. The company’s products allow billions to be communicated via chat, phone, messaging and social media. It connects more than 100,000 companies with millions through hundreds of million of customers. Company is working on various growth strategies in order to increase revenue by $3.5 billion by 2024.

The stock’s price, however, has dropped 29.5% over the year and 13.6% during the month. The stock traded at $104.8 in the closing session, 37.1% less than the 52-week high $166.6, that it reached on February 5, 2020.

In addition, an ongoing evaluation related to ZEN’s merger with Momentive Global Inc. could raise investor anxiety surrounding the stock. Given the stock’s steep valuation and poor profitability, its near-term prospects look uncertain.

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