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.
- He commenced with WebEx Communications, which was later acquired by Cisco in 2007.
- Zoom Video Communications, Inc provides unified communications platform in the Americas, the Asia Pacific, Europe, the Middle East, and Africa.
- Early on in its business journey, the company raised $3 million in seed money from venture capitalists and various company leaders, including the founder of WebEx.
- 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.
- This ‘remote working revolution’ will require effective video conferencing software, such as Zoom to contribute to the revolution.
Two Sigma Advisers LP now owns 1,448,700 shares of the company’s stock valued at $101,032,000 after acquiring an additional 128,800 shares during the last quarter. With approximately $7.7 billion in cash and marketable securities, Zoom maintains a robust financial position while delivering strong profitability. The company’s non-GAAP operating margin of 38.9% demonstrates efficient operations, even as it invests in AI and platform development. The board’s authorization of an additional $1.2 billion share repurchase program, bringing the total buyback capacity to $2 billion, reflects confidence in Zoom’s future prospects and commitment to shareholder returns. Enterprise momentum continues to build, with revenues growing 6% year over year and representing 59% of total revenues.
What’s Going On With Zoom Video Stock Today?
The Contact Center segment achieved a milestone with its largest-ever customer deployment of over 20,000 seats, while the total number of Contact Center customers surpassed 1,250, growing 82% year over year. The company’s Workvivo platform has also gained substantial traction, with customer growth of 72% year over year, including significant wins with Fortune 10 companies. Workvivo was named Meta Platform’s META only preferred migration partner for its customers as it retires Workplace from Meta. In a report released yesterday, Catharine Trebnick from Rosenblatt Securities maintained a Buy rating on Zoom Video Communications (ZM – Research Report), with a price target of $95.00.
Sort by estimates, projected upside, profit surprises, and more to easily find new stocks to invest in or check up on your portfolio. The company maintains a strong balance sheet and generates significant cash flow. The Zacks Consensus Estimate calls for earnings of $1.31 per share, reflecting a 1.6% improvement relative to the same quarter last year. Sales are anticipated to have risen 2.34% to $1.16 billion during the third quarter. Analysts like Zoom Video Communications less than other “computer and technology” companies.
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.
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- Rosenblatt analyst Catharine Trebnick maintained Zoom with a Buy rating and price target of $78.
- 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.
- The company’s Workvivo platform has also gained substantial traction, with customer growth of 72% year over year, including significant wins with Fortune 10 companies.
Demand for collaboration tools, such as Zoom has hit a new high following the coronavirus pandemic. Most company’s employees are working from home and there is limited contact between businesses dealing with one another. A combination of these factors and the likelihood of social distancing lasting throughout 2022 could boost Zoom’s revenue accordingly. Following the Covid-19 pandemic that impacted many workers’ lives throughout the world, Zoom’s stock reached a high point of approximately £570 in September 2020. Since this point, Zoom’s share price dropped slightly and is currently on a downtrend, trading for approximately £330 as of March 2021.
ZM Analyst Ratings Over Time
The company’s strong financial position, expanding product portfolio and leadership in AI innovation make it well-positioned to activ trades review capture growth in 2025 and beyond. While valuation metrics may appear elevated, Zoom’s strategic initiatives, improving growth metrics and robust profitability justify its premium. The combination of its AI-first strategy, enterprise momentum and new product initiatives creates multiple pathways for growth. With a clear monetization strategy for AI capabilities and strong customer adoption, now appears to be an opportune time for investors to consider adding Zoom stock to their portfolios ahead of potential appreciation in 2025. Mixed analyst reports and volatile financial markets mean it is unknown how Zoom’s share price will fluctuate in the future. However, it managed to increase its stock price by 200% in a period when the S&P 500 dropped by 17%, and has outperformed several high-profile tech stocks like Slack and Uber.
Stock Score Locked: Want to See it?
Zoom Video Communications, Inc provides unified communications platform in the Americas, the Asia Pacific, Europe, the Middle East, and Africa. According to TipRanks, Trebnick is an analyst with an average return of -6.0% and a 41.83% success rate. Trebnick covers the Technology sector, focusing on stocks such as CyberArk Software, Zoom Video Communications, and CrowdStrike Holdings. Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.
Zoom Video Communications (ZM) Stock Forecast & Price Target
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. However, its Zacks Rank #2 does suggest that it may outperform the broader market in the near term. Zoom Communications (ZM Quick QuoteZM – Free Report) has been one of the most searched-for stocks automated trading on Zacks.com lately.
If you want to buy Zoom stock, you can easily add shares to your portfolio. If you haven’t yet opened a brokerage account, gather Forex trader best personal information like your bank account details, Social Security number, and address, and you can open one up in just minutes. The first version of Zoom Meetings allowed up to 25 participants per conference.
Early on in its business journey, the company raised $3 million in seed money from venture capitalists and various company leaders, including the founder of WebEx. In the spring of 2012, the company relaunched as Zoom, and by September of that year, it had introduced a beta version of its software that could host conferences with as many as 15 participants. In 2013, Zoom officially released Zoom Meetings to the public after raising $6 million in a Series A round of funding.
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Over the previous 90 days, Zoom Video Communications’s stock had 2 upgrades by analysts. According to analysts, Zoom Video Communications’s stock has a predicted upside of 17.51% based on their 12-month stock forecasts. Enter your email address below to receive the latest news and analysts’ ratings for Zoom Video Communications and its competitors with MarketBeat’s FREE daily newsletter. Insiders have sold a total of 1,457,142 Zoom Video Communications shares in the last 24 months for a total of $104,704,904.66 sold. Enter your email address below to receive a concise daily summary of insider buying activity, insider selling activity and changes in hedge fund holdings.
Salesforce.com invested heavily during Zoom’s IPO but later sold all its shares and reaped massive gains. The upcoming release of Custom AI Companion add-ons for Healthcare and Education in early 2025, along with Zoom Workplace for Frontline, positions the company to tap into new market opportunities. The integration with major partners like ServiceNow and the expansion of AI capabilities provide additional growth vectors. The communications platform hasn’t missed the earnings mark in several years. Zoom has delivered an average earnings surprise of 17.8% over the past four quarters.
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