Besides products like Zoom Phone and other workplace tools and solutions, its AI investments could drive meaningful growth for the business over the next five to 10 years. Once you’re ready to buy shares of Zoom stock, pull up your brokerage account and search for the 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. If you want to know the ins and outs of how to invest in Zoom stock, whether or not it’s currently profitable, and how the business is doing, keep on reading. 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.

However, the fundamental analysis relies on events, such as the release of data on employment and how it is likely to impact the stock of interest. Yuan created Zoom Video in 2011, and its stock faced stiff competition from others such as Google and Microsoft. Zoom formed partnerships with strategic partners to boost its growth, including Slack Technologies, Box, Atlassian, and Salesforce.com.

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This is still a much higher price than it was trading at the same point last year. As a package gets more expensive, Zoom reduces the limit on participants and length of meetings. Furthermore, advanced packages come with additional features, including dedicated support, recording storage, and customization options. The advanced features made the software more attractive to users, especially in 2020, and ultimately grew its revenue. If you are interested in Zoom trading, it is also crucial to determine how the company makes money. Users who open the basic Zoom accounts do not pay anything, but their number is limited.

The recent coronavirus pandemic has resulted in the demand for Zoom’s product and services to skyrocket, resulting in a share price to reflect this increased demand. 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 virus has caused many to work remotely, creating a larger demand for conferencing tools that enable workers and teams to keep in touch and continue collaborating.

Is Zoom stock a good buy?

The first 365 days of the Trump presidency…Will be the best time to get rich in American history. Want to know when executives and insiders are buying or selling Zoom Video Communications stock? Sign up for InsiderTrades.com’s daily newsletter to get the latest insider transactions delivered to your inbox daily. Visit Performance Disclosure for information about the performance numbers displayed above. Privacy Policy | No cost, no obligation to buy anything ever.Past performance is no guarantee of future results. For example, a multinational enterprise (MNE) that wishes to sign up to zoom may choose their enterprise package, starting at £15.99 per month for a minimum of 100 hosts – resulting in a total minimum cost of £1,599 per month.

• Geode Capital Management LLC raised its stake in shares of Zoom Video Communications by 4.2% in the third quarter.
• Zoom is expected to post earnings of $1.30 per share for the current quarter, representing a year-over-year change of -3.7%.
• The advanced features made the software more attractive to users, especially in 2020, and ultimately grew its revenue.
• It also hosted its first annual user conference (Zoomtopia) in 2017 and launched its telehealth platform.
• Click here to see the values of some of the valuation metrics that have driven this grade.

Bank of America boosted their price objective on shares of Zoom Video Communications from $75.00 to $90.00 and gave the stock a “neutral” rating in a research report on Tuesday, November 26th. Benchmark boosted their price objective on shares of Zoom Video Communications from $85.00 to $97.00 and gave the stock a “buy” rating in a research report on Tuesday, November 26th. Finally, Citigroup dropped their price objective on shares of Zoom Video Communications from $86.00 to $85.00 and set a “neutral” rating for the company in a research report on Tuesday. Sixteen analysts have rated the stock with a hold rating, eight have assigned a buy rating and one has assigned a strong buy rating to the stock. Based on data from MarketBeat.com, Zoom Video Communications currently has a consensus rating of “Hold” and a consensus price target of $89.48.

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• However, its Zacks Rank #1 does suggest that it may outperform the broader market in the near term.
• Once the stock was publicly available, the price quickly surged over 80% to $65, before ending its first day of trading at around $62.
• There are currently 15 hold ratings, 8 buy ratings and 1 strong buy rating for the stock.
• We essentially look at how sell-side analysts covering the stock are revising their earnings estimates to reflect the impact of the latest business trends.
• 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.

The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities. While Zoom has fallen out of favor with some investors, the business fundamentals still look good, the company is profitable, and it’s leaning into the potential of AI for its business.

After all, it’s nearly impossible for a company to increase its earnings for an extended period without increasing its revenues. The company beat consensus EPS estimates in each of the trailing four quarters. In the case of Zoom Video, the consensus sales estimate of $1.18 billion for the current quarter points to a year-over-year change of +2.7%. The $4.65 billion and $4.79 billion estimates for the current and next fiscal years indicate changes of +2.8% and +2.9%, respectively. You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer.

In Zoom’s case, the bulk of its profits in 2020 were driven by the COVID-19 pandemic that forced people to work from home. So, the big question is, “Can Zoom sustain this momentum during the post-coronavirus period? ” Consider checking expert analysis on the anticipated price shifts to make your trading decisions. Shah Gilani breaks down the current state of AI stocks and the next AI company with 10x potential. Enter your email address to receive the latest news and analysts’ ratings for Zoom Video Communications and its competitors.

Will Zoom Video Stock ‘Zoom’ Higher After Reporting Q3 Earnings?

Investing in 25 to 30 stocks across various industries and sectors is ultimately a great goal to have for your portfolio. You should consider looking for brokers that offer perks like no or low minimum balance Forex ema fees, fractional share investing, no or low commissions, plus minimal (if any) transaction fees. Most firms also give you various account options that you can open, ranging from a standard taxable brokerage account to tax-advantaged retirement accounts.

Certain Zacks Rank stocks for which no month-end price was available, pricing information was not collected, or for certain other reasons have been excluded from these return calculations. Zacks may license the Zacks Mutual Fund rating provided herein to third parties, including but not limited to the issuer. We essentially look at how sell-side analysts covering the stock are revising their earnings estimates to reflect the impact of the latest business trends.

Zoom Video is graded D on this front, indicating that it is trading at a premium to its peers. Get stock recommendations, portfolio guidance, and more from The Motley Fool’s premium services. Your investment style can dictate which kind of fund is best for your portfolio. Zoom video communication’s stock made its debut on the NASDAQ under the ticker ‘ZM’ on Thursday the 18th of April 2019.

Positive momentum is expected in the to-be-reported quarter as well.These efforts are expected to have boosted the adoption of the company’s solution among enterprise customers. The consensus estimate for enterprise customers in the fiscal algorithmic trading strategies third quarter is currently pegged at 196,459.Zoom Video’s freemium business model helps it win customers rapidly, whom it can later convert into paying customers. In the fiscal second quarter, customers contributing more than $100,000 in revenues in the trailing 12 months grew 7.1% to 3,933. These customers accounted for 31% of revenues, up from 29% in the year-ago quarter. The Zacks Consensus Estimate for customers contributing more than $100,000 in revenues is currently pegged at 4,042 for the third quarter fiscal 2025.

Zoom is a relatively new firm that has consistently grown its revenue within a short time. Its rise, especially in 2020, was driven by the Coronavirus pandemic, and now investors are expecting Zoom stock price to fluctuate in the future. However, Zoom’s good management and preference by top brands imply that it is likely to remain profitable and could be a new force in the tech industry. Zoom’s expansion beyond its core meetings platform is yielding significant results.

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So, you might want to look at some of the facts that could shape the stock’s performance in the near term. The facts discussed here and much other information on Zacks.com might help determine whether or not it’s worthwhile paying attention to the market buzz about Zoom Video. However, its Zacks Rank #1 does suggest that it may outperform the broader market in the near term. Zoom Video Communications (ZM Quick QuoteZM – Free Report) is one of the stocks most watched by Zacks.com visitors lately. So, it might be a good idea to review some of the factors that might affect the near-term performance of the stock. Zoom has witnessed a deceleration of growth since the pandemic, but it is still very profitable and steadily growing revenue.

Zoom is expected to post earnings of $1.30 per share for the current quarter, representing a year-over-year change of -3.7%. For the current quarter, Zoom Video is aafx trading expected to post earnings of $1.30 per share, indicating a change of -8.5% from the year-ago quarter. Over the trailing 12 months, Zoom has reported net income of about $876 million on revenue of $4.6 billion. In the first half of Zoom’s fiscal 2025, it generated net income of $435.3 million, up 121% from the first half of fiscal 2024. With over 13 years in business under its belt, Zoom is also much more than a software business, although Zoom Meetings remains a core part of the business and a market leader in videoconferencing solutions.