Analysts estimate a median 12-month forecast of $122.50, which represents a 15.98% decrease on the current ZM price of $145.80. Zoom has exploded in 2021 but there are doubts that new investors will see much upside. In some respects, Zoom exemplifies the mood of uncertainty that grips the markets right now, as the economic fallout of the Coronavirus crisis remains unclear. The company has undoubtedly been one of the pandemic’s biggest success stories, but it’s hard to work out what its longer-term prospects look like.

• “Zoom reached 5.5 million paid phone seats at the end of 2023, up over 100% year-over-year,” said Baird’s Power.
• The best growth stocks have a Composite Rating of 90 or better.
• As of Sept. 25,  Zoom stock has gained nearly 2% thus far in 2023.
• Compared to the current share price of US$69.2, the company appears quite good value at a 30% discount to where the stock price trades currently.

Zoom, which was founded in 2011 and is headquartered in San Jose, California, serves companies of all sizes from all industries around the world. The total value, or equity value, is then the sum of the present value of the future cash flows, which in this case is US$29b. The last step is to then divide the equity value by the number of shares outstanding. Compared to the current share price of US$69.2, the company appears quite good value at a 30% discount to where the stock price trades currently. Remember though, that this is just an approximate valuation, and like any complex formula – garbage in, garbage out. Zoom Video Communications, Inc. operates a video communications platform connecting people from all over the world through video, voice chat and content sharing.

We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model. Coming into today, shares of the video-conferencing company had lost 2.48% in the past month. In that same time, the Computer and Technology sector lost 4.63%, while the S&P 500 lost 4.45%. The Snom M500 DECT phone system stands out with its wireless design, allowing users to move freely without being tethered to a desk.

In July 2021, Zoom Video and Five9 (FIVN), which automates call center services, announced a deal to merge. As the coronavirus crisis eases, retaining small businesses as well as corporate accounts will be one key to Zoom’s success. For customers with one to 10 employees, renewals are expected to slow as the economy reopens and shelter-in-place orders lift.

Zoom puts limits on the number of participants in a group call and the length of meetings. Zoom software gets high ratings for ease of use and simplicity following earlier video services that provided jerky images and out-of-sync audio. At CAPEX.com, you can follow the live chart to trade on the price movements of this popular stock through CFDs. If you think that its share prices will go up, you can open a long position (BUY).

Morningstar‘s Stock Analysis ZOOM

Top website in the world when it comes to all things investing. Zoom releases a bunch of new features but apparently they aren’t enough to eclipse its disappointing earnings last week, and the stock slips a further 4%. Might take more than a band-aid to fix this bleed…Zoom releases a bunch of new features but apparently they aren’t enough to eclipse its disappointing earnings last week, and the stock slips a further 4%. Five9 investors have been told by an influential advisory firm to reject Zoom’s acquisition offer.Five9 investors have been told by an influential advisory firm to reject Zoom’s acquisition offer. Nicholas Rossolillo and his clients own shares of Zoom Video Communications. The Motley Fool owns shares of and recommends Zoom Video Communications.

• Might take more than a band-aid to fix this bleed…Zoom releases a bunch of new features but apparently they aren’t enough to eclipse its disappointing earnings last week, and the stock slips a further 4%.
• Zoom makes money by selling its platform subscriptions to everyone from single users to companies with hundreds of thousands of employees.
• Upgrade to MarketBeat All Access to add more stocks to your watchlist.
• After exploding in value during the early part of the Coronavirus pandemic, Zoom stock may struggle to maintain its ascendant momentum.

Alternatively, email editorial-team (at) simplywallst.com.This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data.

About Zoom and Zoom Trading

This means that Toro doesn’t add a dealing charge or any administrative fees when you buy Zoom stock. It’s quick and easy to invest in Zoom at our recommended broker, eToro. Assuming you’ve signed up and buy barclays shares funded your broker account, follow these simple steps to buy Zoom stock. You can open an account with as little as $200, so dipping your toe in and sampling the eToro experience is relatively affordable.

While the market has mostly collapsed, Zoom’s share price has risen by more than 50% since February 20th. We are going to use a two-stage DCF model, which, as the name states, takes into account two stages of growth. The first stage is generally a higher growth period which levels off heading towards the terminal value, captured in the second ‘steady growth’ period.

We may also receive compensation if you click on certain links posted on our site. While compensation arrangements may affect the order, position or placement of product information, it doesn’t influence our assessment of those products. Please don’t interpret the order in which products appear on our Site as any endorsement day trading benefits or recommendation from us. Finder.com compares a wide range of products, providers and services but we don’t provide information on all available products, providers or services. Please appreciate that there may be other options available to you than the products, providers or services covered by our service.

Related News ZOOM

Many or all of the products featured here are from our partners who compensate us. This influences which products we write about and where and how the product appears on a page. Here is a list of our partners and here’s how we make money. We’d like to share more about how we work and what drives our day-to-day business. As of Aug. 23, 2021, Zoom had 240,744,533 outstanding shares of Class A common stock and 56,383,369 outstanding shares of Class B common stock.

It’s quicker, easier and of a higher quality than other videoconferencing products, which is why so many new users have chosen it over the likes of Facetime and Skype. Finder.com is an independent comparison platform and
information service that aims to provide you with information to help you make better decisions. We may receive payment from our affiliates for featured placement of their products or services. We may also receive payment if you click on certain links posted on our site.

Consider whether you should buy Zoom stock

A general guideline for investors is to spread money across different companies, industries and geographies, thereby reducing risk and exposure to any one stock’s sudden movements. 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 services. We believe everyone should be able to make financial decisions with confidence. That rating analyzes price and volume changes in a stock over the past 13 weeks of trading.

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Zoom thus has plenty of options (organic development and marketing or some acquisitions) as it looks for new ways to expand. Zoom’s first-quarter fiscal 2022 (the three months ended April 30, 2021) revenue surged 191% higher to $956 million as it lapped one more period of pre-pandemic results. It’s been an incredible run as both businesses and individual users flock to the platform. Finder monitors and updates our site to ensure that what we’re sharing is clear, honest and current.

Revenue growth for Zoom stock depends on its success in the corporate market. And, the outlook for ZM stock is tied to whether the company morphs into a broader business communications platform. Investors will be hoping for strength from Zoom Video Communications as it approaches its next earnings release.

Follow Reinhardt Krause on Twitter @reinhardtk_tech for updates on 5G wireless, artificial intelligence, cybersecurity and cloud computing. Shares currently own an IBD Relative Strength Rating of 54 out of a best-possible 99. “Zoom reached 5.5 million paid phone seats at the end of 2023, up over 100% year-over-year,” said Baird’s Power. how to buy dai “The company expects that to become a 10% revenue segment early this year and perhaps as high as 25% in the future.” In the business market, Zoom rivals include RingCentral (RNG), Cisco Systems (CSCO), Google and others. Growth in annual recurring revenue for business customers with contracts topping $100,000 is one metric to monitor.

And in the COVID pandemic, people increasingly turned to the service as the work-from-home era stretched on. Zoom Video is racing to build more artificial intelligence tools into its business communications platform. Zoom Video recently backed off from a change in its terms of service for platform users that would have enabled it to gather data to train AI models. Zoom itself already benefits from this with its cloud-based software-as-a-service operation. Adjusted operating income is expected to be at least $1.425 billion this year (which would work out to a 36% operating profit margin). Added to this is an impressive balance sheet boasting $4.69 billion in cash and equivalents and no debt.