If you want to buy Zoom stock (ZM), eToro makes it easy to purchase the underlying asset by opening a long (BUY) position. If you’re looking to invest cheap pharmaceutical stocks in Zoom, we advise creating a stock account with one of our recommended online brokers. For traders outside the United States, our top pick is eToro.

If you think prices will decrease, you can open a short position (SELL). The efforts surrounding the Snom M500 to the reseller channel are a testament to this commitment. Nonetheless, Zoom’s success is no fluke – there’s a reason it was valued at $1 billion three years ago.

The company was established in 2011 and is headquartered in San Jose, California, United States. However, full-year growth of 50% implies a massive slowdown from the 191% year-over-year rate just posted in Q1. Zoom’s management often underpromises and overdelivers, but the current guidance nevertheless indicates growth will dip below 50% later this year. Given shares now trade for some 24 times full-year 2022 sales, this is no cheap cloud computing stock.

• Alongside a workforce that needed a way to conduct large meetings remotely, Zoom attracted a massive userbase of socially distanced friends and families.
• Nonetheless, Zoom’s success is no fluke – there’s a reason it was valued at $1 billion three years ago.
• With this in mind, we can consider positive estimate revisions a sign of optimism about the company’s business outlook.
• In the latest trading session, Zoom Video Communications (ZM) closed at $70.11, marking a +0.24% move from the previous day.
• Remember though, that this is just an approximate valuation, and like any complex formula – garbage in, garbage out.

But profitability is just one factor investors should consider before buying a stock. Spend some face time with Zoom’s most recent annual report as well as its S-1 filing, both available on its investor relations website. 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. NerdWallet, Inc. is an independent publisher and comparison service, not an investment advisor. Its articles, interactive tools and other content are provided to you for free, as self-help tools and for informational purposes only.

Markets

(New to this? See how to open a brokerage account.) In short, you’ll want to look for a broker that has a low account minimum, no trade commissions and a user-friendly trading platform. Zoom remains popular in workplaces, though its stock price has dropped considerably since the early days of the pandemic. Read on to find out how to evaluate Zoom stock and decide whether to buy. ZOOM’s beta can be found in Trading Information at the top of this page. A stock’s beta measures how closely tied its price movements have been to the performance of the overall market. The U.S. government has been increasing its scrutiny of Zoom on several fronts.

There are currently 1 sell rating, 15 hold ratings and 5 buy ratings for the stock. The consensus among Wall Street analysts is that investors should «hold» ZM shares. A hold rating indicates that analysts believe investors should maintain any existing positions they have in ZM, but not buy additional shares or sell existing shares. Zoom’s emergence as the breakout videoconferencing service, just in time to capitalize on rocketing demand during the COVID-19 pandemic, makes it one of 2021’s biggest success stories. Unsurprisingly, such a huge surge in users has seen Zoom stock, well, zoom.

He started out with WebEx Communications and eventually became its vice president of engineering. A «Zoom Meeting» refers to a videoconferencing session hosted on its cloud infrastructure. Paid Zoom business plans cost $15 or $20 per employee and require minimums of 10 or 50 seats.

• By accounting for growth, it could also help you if you’re comparing the stock prices of multiple high-growth companies.
• 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.
• Many or all of the products featured here are from our partners who compensate us.
• Zoom Video Communications’ stock was trading at $67.74 at the beginning of 2023.

Zoom Video Communications’s current stock price divided by its per-share earnings (EPS) over a 12-month period gives a «trailing price/earnings ratio» of roughly 146x. In other words, Zoom Video Communications stocks trade at around 146x recent earnings. The second stage is also known as Terminal Value, recession proof stocks this is the business’s cash flow after the first stage. The Gordon Growth formula is used to calculate Terminal Value at a future annual growth rate equal to the 5-year average of the 10-year government bond yield of 2.1%. We discount the terminal cash flows to today’s value at a cost of equity of 8.0%.

Zoom is a member of the information technology sector and operates within the software industry. They include legacy web-based meeting service providers such as Cisco Systems Inc.’s (CSCO) WebEx and LogMeIn Inc.’s GoToMeeting. Rivals also include bundled productivity solution providers with video functionality such as Alphabet Inc.’s (GOOGL) Google G Suite and Microsoft Inc.’s (MSFT) Microsoft Teams. Other competitors are unified communications as a service (UCaaS) and legacy private bank exchange (PBX) providers such as 8×8 Inc. (EGHT), Avaya Holdings Corp. (AVYA), and RingCentral Inc. (RNG). Zoom Video Communications issued an update on its third quarter 2024 earnings guidance on Tuesday, August, 22nd.

ZOOM

Further, Zoom stock holds an IBD Composite Rating of 85 out of 99. The best growth stocks have a Composite Rating of 90 or better. Zoom Video has built up alliances with the likes of Salesforce.com (CRM), Atlassian (TEAM) and Box (BOX). Salesforce.com invested in Zoom stock prior to its initial public offering and reaped big gains. Eric Yuan, Zoom’s chief executive and founder, came to the U.S. in 1997.

About Zoom Video Communications (NASDAQ:ZM) Stock

This guide will explain how to buy Zoom stock, take a look at the best stockbrokers and consider the company’s prospects going forward. However, Zoom will be entering a more difficult stretch as it starts to lap the massive bump it got from COVID-19 in the spring of 2020. Some of this risk has already been priced in, as the stock has been nearly cut in half from it’s all-time high last autumn. With investor narrative currently favoring «economic reopening» plays right now, I think Zoom is a buy.

About Zoom Video Communications, Inc.

Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. High-growth stocks tend to represent the technology, healthcare, and communications sectors. They rarely distribute dividends to shareholders, opting for reinvestment in their businesses. mastering bitcoin More value-oriented stocks tend to represent financial services, utilities, and energy stocks. These are established companies that reliably pay dividends. 21 Wall Street analysts have issued «buy,» «hold,» and «sell» ratings for Zoom Video Communications in the last twelve months.

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Has Zoom (ZM) ever split its stock?

Style is an investment factor that has a meaningful impact on investment risk and returns. Style is calculated by combining value and growth scores, which are first individually calculated. Morningstar analysts hand-select direct competitors or comparable companies to
provide context on the strength and durability of ZOOM’s
competitive advantage. Meetings on the platform can host as many as 1,000 participants, while webinars can scale up to as many as 50,000.

In May, Zoom announced an investment in AI startup Anthropic to support research roadmaps. Anthropic’s AI model will be integrated into Zoom’s Contact Center platform. Meanwhile, recently told its employees to report to its offices on a more regular basis. Amid Covid-19 emergency, demand for Zoom videoconferencing software surged as businesses told employees to work from home. As of Sept. 25,  Zoom stock has gained nearly 2% thus far in 2023.