How to buy Zoom Video Communications stock NASDAQ: ZM stock price $69 94

The PEG ratio provides a broader view than just the P/E ratio, as it gives more insight into Zoom Video Communications’s future profitability. By accounting for growth, it could also help you if you’re comparing the stock prices of multiple high-growth companies. That’s relatively high compared to, say, the trailing 12-month P/E ratio for the United States stock markets on average as of September 25, 2023 (21.29). The high P/E ratio could mean that investors are optimistic about the outlook for the shares or simply that they’re over-valued. Zoom’s cloud-based service allows people in different locations with different devices to connect face-to-face and share content via video, voice and chat.

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.

• Analysts have debated when decelerating sales will hit a bottom.
• 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.
• That’s relatively high compared to, say, the trailing 12-month P/E ratio for the United States stock markets on average as of September 25, 2023 (21.29).

Internet – Software stocks are, on average, holding a PEG ratio of 1.51 based on yesterday’s closing prices. Though 24 times full-year expected sales (and 60 times trailing 12-month free cash flow) is a premium price tag, Zoom stock is as cheap as it ever has been since going public back in 2019. With shares down sharply from all-time highs but the company still growing at a healthy clip, now looks like a good time to buy (or buy a little more if you’re already a shareholder) Zoom stock for the long haul. I expect shares to be volatile this year as Zoom laps the skyrocketing growth it experienced early in the pandemic, but this is still very much a growth company.

Its current rating indicates more funds are buying than selling. Zoom Phone, a cloud-calling product rolled out in 2019, lets customers set up group internet phone calls without video. The Zoom Phone replaces traditional business PBX phone systems. Zoom Video aims to be a player in the contact center market with its own products and services.

Zoom Video Communications, Inc. engages in the provision of video-first communications platform. The firm offers meetings, chat, rooms and workspaces, phone systems, video webinars, marketplace, and developer platform products. It serves the education, finance, government, and healthcare industries. Its platform helps people to connect through voice, chat, content sharing, and face-to-face video experiences.

Zoom Video Communications Inc Analysis

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.

Sure, COVID-19 was a positive catalyst for Zoom, but it merely accelerated adoption of video conferencing. Replacing business meetings with video is a time and resource saver, and there are still thousands of organizations around the globe that have yet to make the jump to the remote work-first model. The investing information provided on this page is for educational purposes only. NerdWallet, Inc. does not offer advisory or brokerage services, nor does it recommend or advise investors to buy or sell particular stocks, securities or other investments. Zoom’s cloud-based software sets up video calls, with chat tools available. With the coronavirus emergency over, Zoom Video Communications (ZM) faces intensified competition and slowing growth.

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.

The company was founded by Eric S. Yuan in 2011 and is headquartered in San Jose, CA. Zoom Video Communications provides a communications platform that connects people through video, voice, chat, and content sharing. The company’s cloud-native platform enables face-to-face video and connects users across various devices and locations in a single meeting.

Should I buy Zoom stock or wait?

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. Zoom’s latest fiscal year (FY) was FY 2021, which ended Jan. 31, 2021. For that period, the company reported net income of $672.3 million on revenue of $2.7 billion.

Decide how much to invest in Zoom stock

Get stock recommendations, portfolio guidance, and more from The Motley Fool’s premium services. Research and a sense of your overall portfolio can fusion markets overview help you decide how much money to invest in Zoom. So, too, might your opinion on how long people will continue to work and dial in from home.

Top 9 Best-Performing Stocks: October 2023

The company is scheduled to release its next quarterly earnings announcement on Monday, November 20th 2023. The Zacks Industry Rank gauges the strength of our individual 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. In terms of valuation, Zoom Video Communications is currently trading at a Forward P/E ratio of 15.

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 how to start forex trading 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.

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.

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 funded quantitative trading strategies 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.

The company provided earnings per share guidance of $1.07-$1.09 for the period, compared to the consensus earnings per share estimate of $1.03. The company issued revenue guidance of $1.11 billion-$1.12 billion, compared to the consensus revenue estimate of $1.13 billion. The company launched its IPO on April 18, 2019, raising almost $357 million in the process. Its share price also saw a huge jump of 72% on the first day of trading. As of February 2, 2021, Zoom stock is more than ten times higher. I believe the reason for Zoom’s success — and its enduring growth story — is more about how efficient video communications are and less about the pandemic.

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