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Zoom Video Communications ZM Stock Price, News & Analysis

what is zoom video trading at

The Motley Fool has positions in and recommends Microsoft and Zoom Video Communications. Justin Pope has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Zoom Video Communications. 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 number of votes from Five9 shareholders to approve the merger. Earlier in September, The Wall Street Journal reported that a U.S.

Our objective is to deliver long-term, fundamental data-driven analysis. Be aware that our analysis might not incorporate the most recent, price-sensitive company announcements or qualitative information. GuruFocus holds no position in the stocks mentioned herein. However, analysts expect Zoom’s adjusted EPS to dip 5% in fiscal 2025 and only rise 1% in fiscal 2026. It might beat those estimates with buybacks throughout the year, but that anemic outlook suggests it’s running out of room to grow.

Yuan then became Cisco’s corporate vice president of engineering for collaboration software. He later formed San Jose, Calif.-based Zoom Video in 2011. A “Zoom Meeting” refers to a videoconferencing session hosted on its cloud infrastructure. Paid Zoom business plans cost $15 or $20 per employee and require minimums of 10 or 50 seats.

  1. Zoom could fall on its face and grow its earnings at half the pace analysts expect, and the stock’s PEG ratio would still be under 1.
  2. David Jagielski has no position in any of the stocks mentioned.
  3. Zoom puts limits on the number of participants in a group call and the length of meetings.

There are currently 2 sell ratings, 10 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. This article, generated by GuruFocus, is designed to provide general insights and is not tailored financial advice. Our commentary is rooted in historical data and analyst projections, utilizing an impartial methodology, and is not intended to serve as specific investment guidance. It does not formulate a recommendation to purchase or divest any stock and does not consider individual investment objectives or financial circumstances.

Is Zoom Video A Buy Amid Artificial Intelligence Software Race?

But since Zoom is so profitable and has so much cash, it can financially engineer earnings growth and drive shareholder value. Its 101% net revenue retention rate signals that existing customer spending is stagnant. The company is trying to cross-sell new products that are based on artificial intelligence (AI), and it pointed to some traction in the fourth quarter, calling out some notable logo wins in Broadcom and Diageo.

what is zoom video trading at

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. With an end-of-year rally, Zoom stock advanced 6% in 2023. The Nasdaq composite shot up 43% amid buzz over generative artificial intelligence technology. © 2024 Market data provided is at least 10-minutes delayed and hosted by Barchart Solutions. Information is provided ‘as-is’ and solely for informational purposes, not for trading purposes or advice, and is delayed.

Zoom still can’t grow revenue

At its all-time high of $568.34 on Oct. 19, 2020, the stock had traded for 170 times adjusted earnings for fiscal 2021. Today, it trades for about $70, or only 14 times Zoom’s adjusted EPS outlook for fiscal 2025. In fiscal 2023, Zoom’s revenue rose 7% as its adjusted EPS fell 14%.

what is zoom video trading at