Zoom Video Communications Stock Price ZM Stock Quote, News, and History

Research and Development expenses jumped 2% year over year to $105.7 million in the third quarter of fiscal 2024. This trend is likely to have continued in the fiscal fourth quarter as the company plans equiti review to add local sales support in international markets. Zoom Video Communications, Inc. provides unified communications platform in the Americas, the Asia Pacific, Europe, the Middle East, and Africa.

1. In May, Zoom announced an investment in AI startup Anthropic to support research roadmaps.
2. Zoom Video Communications’ stock was trading at $71.91 at the beginning of the year.
3. The company is headquartered in San Jose, Calif., and has additional offices in more than 15 locations in the United States, Europe, Asia, and Australia.
4. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock’s expected earnings growth rate.

As the market closed yesterday, the Internet – Software industry was having an average PEG ratio of 1.85. The Zacks Consensus Estimate for the top line is currently pegged at $1.13 billion, indicating growth of 0.98% from the year-ago quarter.Non-GAAP earnings are expected in the range of $1.13-$1.15 per share. The consensus mark for earnings has remained steady at $1.15 per share over the past 30 days, indicating a decline of 0.93% year over year. As Zoom’s revenue growth slowed, the company saw its margins shrink and eventually its bottom line fell into the red. But as the company cut costs and worked on efficiencies, it returned to profitability, reporting positive earnings in each of its three most recent quarters.

SWOT Analysis for Zoom Video Communications

The move is designed to assess the potential for foreign participation in the U.S. telecom industry. Zoom has a research hub in China, and Five9 has operations in Russia. A breakout from a third, fourth or fifth-stage base that fails fast typically means sellers have the upper hand and the supply of available shares is thick. Get https://forexhero.info/ stock recommendations, portfolio guidance, and more from The Motley Fool’s premium services. Morgan Stanley analyst Meta Marshall upgraded Zoom Video from an Equal-Weight rating to an Overweight rating and raised the price target from $360 to $400. The U.S. government has been increasing its scrutiny of Zoom on several fronts.

Zoom Video Communications Inc. stock falls Friday, underperforms market

Upgrade to MarketBeat All Access to add more stocks to your watchlist. For the October quarter, Zoom Video earned an adjusted $1.29 a share, up 21% from a year earlier. 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.

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.

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The Morgan Stanley analyst believes enterprise momentum and dissipating margin headwinds create a positive setup for the stock ahead of earnings. The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Our research shows that these estimate changes are directly correlated with near-term stock prices. This model considers these estimate changes and provides a simple, actionable rating system. Zoom Video Communications (ZM) closed the most recent trading day at $61.35, moving +0.05% from the previous trading session. As mentioned above, on Sept. 30, 2021, Five9 announced that the two parties had mutually agreed to abandon the deal.

Zoom Stock Scores an Upgrade Ahead of Earnings. Analyst Cites More Stable Usage.

Although it’s not at the same levels as a few years ago, that growth rate was unsustainable to begin with. The fact that revenue hasn’t fallen drastically is a testament to the strength and popularity of Zoom’s service. Investors should also note any recent changes to analyst estimates for Zoom Video Communications. These revisions help to show the ever-changing nature of near-term business trends.

That said, posting growth will be a lot harder now that Zoom is lapping the pandemic-fueled 2020. For its part, Five9 has posted sales of about $500 million over the last 12 months. The competition is made up of entrenched incumbents and innovative newcomers. Now that growth is coming back to earth, the stock has fallen 51% from its high last year. Despite that, there are several good reasons to think Zoom could stage a rebound. In the meantime, these key sell rules may help you take at least some profits close to the peak of this current rally.

Zacks may license the Zacks Mutual Fund rating provided herein to third parties, including but not limited to the issuer. 18 Wall Street research analysts have issued “buy,” “hold,” and “sell” ratings for Zoom Video Communications in the last year. There are currently 2 sell ratings, 11 hold ratings and 5 buy ratings for the stock. The consensus among Wall Street research 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.

You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. 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. At a discounted price, the stock can make for a great buy; there’s no reason it should be trading near the levels it was at in 2019.

Our experts have selected 5 promising stocks set to climb +100% or (significantly) more within the next 12 months. Zoom’s stock is trading at only 14 times its estimated future profits. Its product is proving to be resilient, even amid growing competition. By accumulating free cash, Zoom can put it to work and potentially pursue acquisitions and growth opportunities. It’s when a business is not growing and not generating free cash that investors should be worried.

In 2020, the United States charged a China-based Zoom executive with conspiring to disrupt videoconference commemorations of the 1989 Tiananmen Square democracy protests. Zoom is also the focus of several ongoing federal investigations related to its dealings with Beijing, according to the Journal. Meetings on the platform can host as many as 1,000 participants, while webinars can scale up to as many as 50,000.

ZM stock holds an Accumulation/Distribution Rating of B-minus. That rating analyzes price and volume changes in a stock over the past 13 weeks of trading. Its current rating indicates more funds are buying than selling. Analysts polled by FactSet had expected Zoom earnings of $1.09 a share on sales of $1.12 billion. Zoom Video Communications ZM closed the most recent trading day at $61.35, moving +0.05% from the previous trading session.

Paid Zoom business plans cost $15 or $20 per employee and require minimums of 10 or 50 seats. 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.

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. One, watch for a big drop through the 10-week moving average. Right now, Zoom’s average weekly turnover over the past 10 weeks is nearly 56 million shares — more than a quarter of the stock’s 180-million-share float. Over the same time frame, O’Neil notes, the Dow Jones Industrial Average showed an average ratio of 15 times trailing 12-month earnings.