The following graph shows Zoom’s total revenue and enterprise revenue. GOOGL), among others, are well-positioned to steal market share from Zoom. Zoom is relatively cheap trading at 22.1x C2024 on P/E basis compared to the group average at 83.0x; we recommend against buying Zoom on weakness as we expect more downside ahead. Sign up for a Robinhood brokerage account to buy or sell zm stock and options commission-free.
- A simple, equally-weighted average return of all Zacks Rank stocks is calculated to determine the monthly return.
- News Corp is a global, diversified media and information services company focused on creating and distributing authoritative and engaging content and other products and services.
- Zoom Meetings integrate with tools, such as Atlassian, Dropbox, Google, LinkedIn, Microsoft, Salesforce and Slack.
- The Zoom Phone replaces traditional business PBX phone systems.
- We believe Zoom still enjoys enterprise demand tailwinds from the remote-in-person hybrid work style, but believe demand is slowing down.
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. Zoom, which was founded in 2011 and is headquartered in San Jose, California, serves companies of all sizes from all industries around the world. As well as increases in software and services that enable WFH, physical hardware has also seen an increase in sales, likely due to workers setting up offices at home.
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Provide specific products and services to you, such as portfolio management or data aggregation. The technique has proven to be very useful for finding positive surprises. In fact, when combining DotBig a Zacks Rank #3 or better and a positive Earnings ESP, stocks produced a positive surprise 70% of the time, while they also saw 28.3% annual returns on average, according to our 10 year backtest.
We expect share gains and share shifts to be very difficult for Zoom and recommend investors sell the stock before it dips further. At the center of everything we do is a strong commitment to independent research and sharing its profitable discoveries with investors. This dedication to giving investors a trading advantage led to the creation of our proven Zacks Rank stock-rating system. Since 1988 it has more than doubled the S&P 500 with an average gain of +24.51% per year. These returns cover a period from January 1, 1988 through September 12, 2022.
Zoom Video Communications, Inc.
We are bearish on the video-first communications platform, Zoom, as we expect the company to experience sluggish demand in the post-pandemic environment. Founded in 1993 by brothers Tom and David Gardner, The Motley Fool helps millions of people attain financial freedom through our website, podcasts, books, newspaper column, radio show, and premium investing services. In addition, zoom stock holds an Accumulation/Distribution Rating of D-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.
It allows the user to better focus on the stocks that are the best fit for his or her personal trading style. Build the strongest argument relying on authoritative content, attorney-editor expertise, and industry defining technology. Services such as Zoom are certain to see a reduction in user numbers when the pandemic is brought DotBig under control, but usage is unlikely to return to pre-pandemic levels. In a recent survey of 1,428 CIOs and IT leaders across 83 countries, 94 percent of respondents said they expect at least some of their workforce to WFH post-COVID-19. Find out how to buy OTC stocks and compare brokers who offer access to OTC Markets.
The company guided lower for 3Q23, with revenue forecast estimated to be between $1.095B and $1.1B compared to the consensus of https://dotbig.com/markets/stocks/ZM/ $1.15B. Zoom’s consensus for its FY2023 revenue is $4.53B, while the company guided lower in the range of $4.385B to $4.395B.
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To use individual functions (e.g., mark statistics as favourites, set statistic alerts) please log in with your personal account. A recent survey showed that in companies with digital output, 75 percent of respondents work either https://dotbig.com/ entirely in a work-from-home setting, or in a hybrid arrangement. Web conferencing software is experiencing an increase in spending as a result, with 67 percent of respondents planning to increase their spending in this area.
About Zoom Video Communications Inc (ZM.O)
We believe lower guidance for 3Q23 and missed revenue consensus by $17.58M in 2Q23 are indicators that the company won’t work in the near term. Data are provided ‘as is’ for informational purposes only and are not intended for trading purposes. Data may be intentionally delayed pursuant to supplier requirements. Follow Reinhardt Krause on Twitter @reinhardtk_tech for updates on 5G wireless, artificial intelligence, cybersecurity and cloud computing. But by late June that year, ZM stock consolidated as some analysts questioned Zoom’s lofty valuation. Sales partners include Slack Technologies , Salesforce.com , Atlassian and Box . Salesforce.com invested in https://dotbig.com/ prior to its initial public offering and reaped big gains.
Zoom Video Communications
Thus far in 2022, ZM stock has retreated about 54% amid volatility in the tech-heavy Nasdaq composite. DotBig has underperformed the S&P 500, which is down 19.3%.
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For the current quarter ending in September, Zoom Video forecast earnings per share in a range of 82 cents to 83 cents, compared with analyst estimates for 92 cents. Zoom Video said it expects revenue in a range of $1.095 billion to $1.1 billion vs. estimates of $1.15 billion.
NVDA, SYNH and ZM are examples that showed signs of the run down ending as volume indicators diverged upward against the decline. While Zoom is relatively cheap, we believe the seemingly attractive valuation is due to the major downside risks.