What’s Going On With Zoom Communications Stock Tuesday? Zoom Video Comms NASDAQ:ZM
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Zoom Video Communications (ZM 2.34%) rewarded shareholders who bought the stock prior to the pandemic, returning 391% in 2020. The company was a clear beneficiary of the work-from-home environment, a trend that is still very evident today. Bureau of Labor statistics released in January, 11% of workers were still teleworking as of December 2021. Research and a sense of your overall portfolio can 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. During that period, its net income of $339 million surged 63% higher.
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Zoom makes up almost 7% of its tifia forex broker review flagship fund, the Ark Innovation ETF, making the Cathie Wood investment its fourth-largest holding. Across all Ark Invest funds, Zoom makes up around 4.5% of the company’s holdings. For a company like Zoom that has been so tied in investors’ minds to the pandemic, it can be difficult to take a step back and see the forest for the trees.
Cash flow
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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. You’ll need to add money to the account and then search for “ZM” within the brokerage’s platform. This may influence which products we review and write about (and where those products appear on the site), but it in no way affects our recommendations or advice, which are grounded in thousands of hours of research.
The stock is off the lows of the session as analysts lift price targets following the print. Zoom is a member of the information technology sector and operates within the software industry. They include legacy web-based meeting service providers such as Cisco Systems Inc.’s (CSCO) WebEx and LogMeIn Inc.’s GoToMeeting.
Select to analyze similar companies using key performance metrics; select up to 4 stocks. Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool’s board of directors. Luke Meindl has no position in any of the companies mentioned.The Motley Fool owns and recommends Alphabet (A shares), Cisco Systems, Microsoft, and Zoom Video Communications.
In other words, all the things that can help investors determine if Zoom is a worthy addition to their portfolio. Its forward price-to-earnings (P/E) ratio is just under 14, and the price-to-sales (P/S) ratio of less than 5 is just above all-time lows. That valuation positions the stock for a massive surge if the company can stoke a recovery in revenue growth. Zoom Video Communications Inc. (ZM) offers a video-first communications platform used by millions of people worldwide for both business and personal use. The platform connects people via video, phone, chat, and content sharing and can be integrated across a broad range of devices. As a long-term investor, I don’t ignore past performance, but I’m generally more interested in where the company is heading.
- To that end, Zoom has recently introduced Zoom Phone, Zoom Meetings, Zoom Video Webinars, and Zoom for Home.
- Would it tip your portfolio too far into stocks as a whole?
- Zoom makes up almost 7% of its flagship fund, the Ark Innovation ETF, making the Cathie Wood investment its fourth-largest holding.
- Full-year earnings are expected to be between $5.41 and $5.43 per share versus estimates of $5.35 per share.
- 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.
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The fxtm forex broker review chart below compares Zoom’s Q3 of 2022 (ending Oct. 31, 2021) to the corresponding quarter two years ago. Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about. “This change reflects our evolution into an AI-first work platform for human connection and our vision for long-term growth,” founder and CEO Eric Yuan said on a conference call. Zoom Video Communications (ZM 2.34%) is a bit of a mystery as a growth stock. 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.
For better or worse, Zoom has become synonymous with the pandemic. Its rise to prominence and the resulting performance were tied to a massive need for video communications at the height of lockdowns. This demand pulled forward a ton of growth and warped some investors’ views of the company’s fundamentals. 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. Zoom Video Communications Inc ZM shares are trading lower on the heels of the company’s third-quarter financial results.
Department of Justice-led panel, named Team Telecom, was investigating the proposed merger’s potential national security risks. Meetings on the platform can host as many as 1,000 participants, while webinars can scale up to as many as 50,000. Please bear with us as we address this and restore your personalized lists. Don’t let Zoom’s past success dictate your decision to invest in the company today.
Finance
Taken without the noise of the past two years, Zoom is clearly a buy for existing shareholders or those investors looking to start a position. Zoom ended the last quarter with $5.4 billion in cash, cash equivalents, and marketable securities and only $97 million in debt. To that end, Zoom has recently introduced Zoom Phone, Zoom Meetings, Zoom Video Webinars, and Zoom for Home.
That was not enough to persuade investors to buy Zoom stock, as it is up just 1% from year-ago levels. Admittedly, the company’s results have come nowhere close to matching that expected growth. In the first nine months of 2023, revenue of $3.4 billion increased by only 3% yearly. Ark Invest has backed estimates up by taking a significant position in the media stock.
As of Aug. 23, 2021, Zoom had 240,744,533 outstanding shares of Class A common stock and 56,383,369 outstanding shares of Class B common stock. As mentioned above, on Sept. 30, 2021, Five9 announced that the two parties had mutually agreed to abandon the deal. The company said that the agreement had not received the required Forex correlation number of votes from Five9 shareholders to approve the merger. Earlier in September, The Wall Street Journal reported that a U.S.
