Zoom puts limits on the number of participants in a group call and the length of meetings. Zoom software gets high ratings for ease of use and simplicity following earlier video services that provided jerky images and out-of-sync audio. 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 football stocks or advise investors to buy or sell particular stocks, securities or other investments. The company’s other products, such as Zoom Phone, which can replace traditional phone systems to allow for voice over IP calling without video, could be a market disruptor, according to IBD. Bank of America analyst Daniel Bartus said that Zoom Phone has potential to achieve $2 billion in revenue by 2026.

  1. Zoom’s usage remains high, and it’s ubiquitous across different industries and sectors today.
  2. The company’s other products, such as Zoom Phone, which can replace traditional phone systems to allow for voice over IP calling without video, could be a market disruptor, according to IBD.
  3. The investing information provided on this page is for educational purposes only.
  4. The platform connects people via video, phone, chat, and content sharing and can be integrated across a broad range of devices.
  5. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company’s expected earnings growth trajectory.

Zoom Video in early March said company President Greg Tomb, a former cloud computing executive at Alphabet’s (GOOGL) Google, will leave. Zoom Video in July rolled out Zoom Workforce Management, which improves agent productivity by automating/optimizing agent work shifts and monitoring agent performance. 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. The Nasdaq composite shot up 43% amid buzz over generative artificial intelligence technology.

Zoom (ZM) stock prices, likewise, soared, reaching a high of more than $500 per share by September 2020. This was more than five times its January 2020 price, when it hovered in the $70s. Zoom could invest in building the product itself, but customers “do not want to wait,” Yuan said. Zoom’s goal is to be not only a video service used for meetings with co-workers and clients, but to become the center of all work communication, including for customer service reps in call centers. Yuan was a lead engineer at WebEx when the company was acquired by Cisco in 2007, and Five9 CEO Rowan Trollope ran all of Cisco’s collaboration products, including WebEx, until taking the Five9 job in 2018.

Our estimates are based on past market performance, and past performance is not a guarantee of future performance. Both companies are set up to be cloud consolidators as automation changes the future of work and the enterprise software stack of the future gets built, Chuang said. In the three years since reaching a $100 billion market cap, Salesforce has completed four billion-dollar-plus deals, including Slack and the $15.7 billion purchase of Tableau. The near-term business outlook for Zoom remains uncertain, and a potential growth re-acceleration is far from guaranteed. Only time will tell if the Zoom growth story has another chapter or two; however, investors can remain rest assured that Zoom is likely to remain a free cash flow-producing machine for several years to come.

Free Tools

Zoom’s cloud-based software sets up video calls, with chat tools available. Zoom Video is racing to build more artificial intelligence tools into its business communications platform. Zoom Video recently backed off from a change in its terms of service for platform users that would have enabled it to gather data to train AI models. 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. And in the COVID pandemic, people increasingly turned to the service as the work-from-home era stretched on. NerdWallet, Inc. is an independent publisher and comparison service, not an investment advisor.

Information is provided ‘as-is’ and solely for informational purposes, not for trading purposes or advice, and is delayed. To see all exchange delays and terms of use please see Barchart’s disclaimer. The company is scheduled to release its next quarterly earnings announcement on Monday, February 26th 2024. Further, Zoom stock holds an IBD Composite Rating of 83 out of 99.

Major Stocks To Watch in 2024, According to Investors

Although the analysts’ average price target of $311.76 supports that consensus, projecting an increase of over 68% from its most recent closing price of $185.25, 12 “hold” ratings factored into the consensus. The average target is based on a low target of $207 and high of $571.91, with $299 being the median. Yuan went a step further in June on Zoom’s quarterly earnings call.

What Is Zoom?

Its product is easy to use and would have probably disrupted the video-conferencing market, even without a global pandemic. But the stock is pricing in a lot of growth, and it doesn’t look like Zoom will be able to deliver. As growth grinds to a halt and margins slump, Zoom stock could fall off another cliff as investors reevaluate the pandemic darling. In the first months of the pandemic, businesses that abruptly found themselves with remote employees had no choice but to pay for video-conferencing software. It didn’t matter how much it cost; what mattered was getting up and running quickly.

Has Zoom (ZM) ever split its stock?

Over the past month, the stock decreased by 1.04%, and in the past year, by 8.76%. With performance like this, long-term shareholders are more likely to start looking into the company’s price-to-earnings ratio. Founded in 1993, The Motley Fool is a financial services company dedicated to making the world smarter, happier, and richer. The Motley Fool reaches millions of people every month through our premium investing solutions, free guidance and market analysis on Fool.com, top-rated podcasts, and non-profit The Motley Fool Foundation. With the coronavirus emergency long over, the clock is ticking on Zoom Video Communications (ZM).

Zoom Video Communications, Inc. provides unified communications platform in the Americas, the Asia Pacific, Europe, the Middle East, and Africa. The company was formerly known as Zoom Communications, Inc. and changed its name to Zoom Video Communications, Inc. in May 2012. The company was incorporated in 2011 and is headquartered in San Jose, California. Zoom Video Communications’ (ZM -2.49%) stock price dropped to its lowest levels in over three months after the company released its second-quarter earnings report on Aug. 30. In conclusion, the price-to-earnings ratio is a useful metric for analyzing a company’s market performance, but it has its limitations. While a lower P/E can indicate that a company is undervalued, it can also suggest that shareholders do not expect future growth.

Zoom stock is down 53.45% from last year and 45.08% year to date. That’s not due to the merger termination, as the stock price actually fell slightly when the deal https://bigbostrade.com/ was first announced earlier this year. Mixed analyst reports and volatile financial markets mean it is unknown how Zoom’s share price will fluctuate in the future.

ZM price to earnings (PE)

For the full year, Zoom expects its revenue to increase 51% and for its adjusted EPS to rise 42%-43%. Be sure to use Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming trading sessions. The IPO market is picking up, with Lyft and PagerDuty debuting in recent weeks, and Pinterest opening alongside Zoom on Thursday.

Prior to founding Zoom, Yuan was corporate vice president of engineering at Cisco, and was a founding engineer and vice president of engineering for web and videoconferencing platform Webex. The U.S. government has been increasing its scrutiny of Zoom on several fronts. 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. You’ll need to add money to the account and then search for “ZM” within the brokerage’s platform.

Zoom Phone (formerly Zoom Voice) is a Zoom cloud VoIP system launched in 2019, serving as an add-on for businesses. It allows inbound and outbound calling through a public switched telephone network (PSTN) so that Zoom video users have all their business communications in one place, video and voice alike. Zoom offers features for its users that range from videoconferencing and events to a full suite of apps and APIs. In this section, we’ll take a look at the usage statistics of these features and what value they can add.

Acquisition talks cooled for a while and picked up in the last three months, said people with knowledge of the transaction, who asked not to be named because the discussions were confidential. That’s when Goldman Sachs started advising Zoom on a deal and Five9 hired Frank Quattrone’s Qatalyst Partners. When Zoom topped the $100 billion mark last year, it had been public for just over 14 months.