One of the factors that a trader should check when selecting a company for investment is profitably, and Zoom has done excellently. However, you need also to establish whether the momentum can be sustained in the coming years. Zoom is a cloud-based conferencing software that enables people to interact virtually when a physical meeting is undesirable or impossible. Indeed, it is more than a video software because users can record meetings, create annotations, and even share each other’s screenshots. This flexibility and convenience made it the software of choice for most companies and individuals who were forced to work remotely at the height of the COVID-19 emergency. Zoom’s revenue decelerated as a public company in its first four quarters, but everything changed from April 2020 when the COVID-19 pandemic hit the globe.
We believe everyone should be able to make financial decisions with confidence. Zoom has witnessed a deceleration of growth since the pandemic, but it is still very profitable and steadily growing revenue. Investors might consider adding the stock to a well-diversified basket of assets. As long as you’re not expecting pandemic-era returns, and want to invest in Zoom stock for its more mature business potential, there’s a lot for investors to like about this stock. New AI products include Zoom Virtual Agent, Zoom Revenue Accelerator, and Zoom AI Companion. Zoom Virtual Agent is a self-service chatbot that can handle a wide range of issues, including complex customer problems, and an AI virtual voice agent that enables self-service voice calls.
Zoom Video Communications Key Executives
Morgan Self-Directed Investing account with qualifying new money. ZM market cap is currently $23.03B and has a P/E ratio of 23.56. According to TipRanks, Trebnick is an analyst with an average return of -6.0% and a 41.83% success rate.
- Because of the anticipated high volatility, make sure to manage your risk well by only trading with a small portion of your equity in every trade and using stop-loss orders correctly.
- Zoom launched its artificial intelligence (AI)-powered assistant Zoom AI companion in 2023, and a new AI-powered collaboration platform called Zoom Workplace in 2024.
- Buying shares in just one company is generally considered a riskier bet than investing in a range of investments – AKA a “diversified portfolio”.
- If you still want to trade Zoom after doing a comprehensive analysis, it is important to think of how Zoom stock will slot in your portfolio.
- The investing information provided on this page is for educational purposes only.
Given the downbeat market conditions, I would say perhaps some overvaluation is noted. The problem with Zoom started when the covid vaccine was announced on November 9, 2020. Zoom’s stock plunged 17% that very same day the Pfizer/BioNTech announcement was made.
Read on to find out how to evaluate Zoom stock and decide whether to buy. Many, or all, of the products featured on this page are from our advertising partners who compensate us when you take certain actions on our website or click to take an action on their website. Robert Bresnahan, Jr. (R-PA) has bought shares of Zoom Video Communications in the last year totaling $8,000. Upgrade to MarketBeat All Access to add more stocks to your watchlist. Sign-up to receive the latest news and ratings for Zoom Video Communications and its competitors with MarketBeat’s FREE daily newsletter.
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Please appreciate that there may be other options available to you than the products, providers or services covered by our service. Zoom’s current share price divided by its per-share earnings (EPS) over a 12-month period gives a “trailing price/earnings ratio” of roughly 23x. In other words, Zoom’s shares trade at around 23x recent earnings. The value of your investments can go up and down, and you may get back less than you invest. If you’re not sure which investments are right for you, please activtrades forex broker seek out a financial adviser.
- With around half of Fortune 500 companies reportedly using Zoom in 2019, it’s no surprise that Zoom’s stock price has risen drastically since the outbreak of Covid-19.
- The pandemic also marked Zoom’s first foray into selling hardware products, with offerings like Zoom Rooms and Zoom Phone becoming available to customers who could pay a monthly subscription for hardware and accompanying services.
- By 2019, about half of Fortune 500 companies reportedly used Zoom.
- NerdWallet does not and cannot guarantee the accuracy or applicability of any information in regard to your individual circumstances.
By July 2020, Zoom’s revenue blew the past consensus estimates. For the next fiscal year, the consensus earnings estimate of $5.48 indicates a change of +2.2% from what Zoom is expected to report a year ago. Zoom is a major part of the NASDAQ, so it’s included in many global funds and investment trusts, as well as tracker-style exchange traded funds (ETFs). Note, too, how Zoom’s share price in recent months has turned less dynamic.
This will help to minimize losses if the market goes against your prediction. If you are thinking of ZM stock trading, here is a demonstration of how to go about it. Valuing a stock is incredibly difficult, and any metric has to be viewed as part of a bigger picture of overall performance. However, analysts commonly use some key metrics to help gauge value. Quickly compare vetted accounts to see which providers are most appropriate for you. Therefore, it is hard to say if Zoom’s share is severely overvalued or undervalued at present.
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This acquisition also saw Yuan promoted to Cisco’s corporate video president of engineering for collaboration software. Content on eToro’s social trading platform is generated by members of its community and does not contain advice or recommendations by or on behalf of eToro – Your Social Investment Network. Zoom reported revenues of $1.18 billion in the last reported quarter, representing a year-over-year change of +3.3%. EPS of $1.41 for the same period compares with $1.42 a year ago. Zoom is expected to post earnings of $1.30 per share for the current quarter, representing a year-over-year change of -3.7%. Over the last 30 days, the Zacks Consensus Estimate has changed +2.4%.
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While Zoom Video Communications currently has a Hold rating among analysts, top-rated analysts believe these five stocks are better buys. Past performance is not a guarantee or prediction of future performance. Research and a sense of your overall portfolio can help you decide how much money to invest in Zoom. So, too, might your opinion on how long people will continue to work and dial in from home.
How to invest
Unlike some other firms, Zoom went into its IPO as a profitable company. Zoom’s cloud-based service allows people in different locations with different devices to connect face-to-face and share content via video, voice and chat. This may influence which products we review and write about (and where those products appear on the site), but it in no way affects our recommendations or advice, which are grounded in thousands of hours of research. Our partners cannot pay us to guarantee favorable reviews of their products or Good price to earnings ratio services.
You’ll need to add money to the account and then search for “ZM” within the brokerage’s platform. Once you’re ready to buy shares of Zoom stock, pull up your brokerage account and search for the best days to trade forex ticker ZM. Most brokerages will let you input the exact number of shares you want into the order box or the dollar amount you want to buy. You can usually buy fractional shares, too, if you don’t want to invest in whole shares of the stock.
” Consider checking expert analysis on the anticipated price shifts to make your trading decisions. Zoom’s history can be traced back to 1997 when Eric Yuan, the company’s CEO and founder, came to the U.S. He commenced with WebEx Communications, which was later acquired by Cisco in 2007.
These are a treasure trove of information about the company’s operations, financials, customers, case studies, leadership team, challenges and growth opportunities. In other words, all the things that can help investors determine if Zoom is a worthy addition to their portfolio. Founded in 1993, The Motley Fool is a financial services company dedicated to making the world smarter, happier, and richer. The Motley Fool reaches millions of people every month through our premium investing solutions, free guidance and market analysis on Fool.com, personal finance education, top-rated podcasts, and non-profit The Motley Fool Foundation.
To succeed in Zoom trading, it is prudent to follow its performance and the latest analysis by experts closely. Because of the anticipated high volatility, make sure to manage your risk well by only trading with a small portion of your equity in every trade and using stop-loss orders correctly. A good broker should also have low transaction fees so that you can keep your costs low. The broker should also have an all-around trading ZM stock analysis to help you make the right decision. By 2019, about half of Fortune 500 companies reportedly used Zoom. This is why it was easy for it to win more brands and individual users when COVID-19 broke out and forced more people to work remotely.
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