Users who open the basic Zoom accounts do not pay anything, but their number is limited. Also, Zoom offers three more paid packages that range from £11.99 – £15.99 per month per host. Compared to the Zacks Consensus Estimate of $1.15 billion, the reported revenues represent a surprise of +1.22%. Zoom Video Communications (ZM Quick QuoteZM – Free Report) has recently been on Zacks.com’s list of the most searched stocks.
ZM’s trailing-12-month gross profit margin of 76.18% is 53.8% higher than the industry average of 49.54%. Similarly, its 18.09% trailing-12-month EBITDA margin is 85.4% higher than the industry average of 9.76%. Non-GAAP income from operations increased 8.1% year-over-year to $456.59 million. The company’s non-GAAP net income and net income per share increased 20.7% and 16.4% from the prior year’s quarter to $426.32 million and $1.35, respectively.
Short Interest Ratio / Days to Cover
Moreover, ZM’s forward EV/EBIT ratio of 6.23x is 69.5% below the industry average of 20.43x. Also, its 10.06x forward Price/Cash Flow ratio compares to the industry average of 23.46x. Zoom Contact Center, another major AI initiative, has also achieved a significant breakthrough. According to founder and CEO Eric Yuan, the platform has matured and is now positioned as “ready for prime time.” Its comprehensive suite includes AI-powered agent support, chatbot functionalities, and advanced analytics capabilities. Nobody does more to provide you with what you need to maximise your forex chart patterns trading potential. We offer a superior trading environment that puts traders in the best position to profit.
Department of Justice-led panel, named Team Telecom, was investigating the proposed merger’s potential national security risks. 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. Rather than focusing on anything else, we at Zacks prioritize evaluating the change in a company’s earnings projection.
Cash flow
Magnifi Communities LLC is neither a registered investment adviser nor a broker-dealer and does not provide customized or personalized recommendations. Trading and investing involve substantial risk, and you may lose the entire amount of your principal investment or more. You should trade or invest only “risk capital” – money you can afford to lose. Affiliates of Magnifi will receive cash compensation for referrals of clients who open accounts with Magnifi.
The company topped consensus revenue estimates each vantage fx review time over this period. For the current and next fiscal years, $4.61 billion and $4.78 billion estimates indicate +1.9% and +3.6% changes, respectively. Although media reports or rumors about a significant change in a company’s business prospects usually cause its stock to trend and lead to an immediate price change, there are always certain fundamental factors that ultimately drive the buy-and-hold decision.
Accelerated by the COVID-19 pandemic, remote work became not just a necessity but a new norm, transforming kitchen tables into boardrooms and laptops into lifelines. One company at the forefront of this shift is Zoom Video Communications, Inc. (ZM). Since no trading strategy is perfect, you should always use an appropriate risk management strategy, such as a stop-loss order. This will help to minimize losses if the market goes against your prediction. Insiders have sold a total of 1,459,650 Zoom Video Communications shares in the last 24 months for a total of $105,392,120.64 sold.
Insiders that own company stock include Santiago Subotovsky, Kelly Steckelberg, Velchamy Sankarlingam, Shane Crehan, Janet Napolitano, Aparna Bawa, Jonathan Chadwick and Eric S Yuan. Select to analyze similar companies using key performance metrics; select up to 4 stocks. Beyond what we’ve stated above, we have also rated the stock for Growth, Momentum, Stability, and Sentiment. The stock has an overall rating of A, translating to a Strong Buy in our proprietary rating system.
- Salesforce.com invested heavily during Zoom’s IPO but later sold all its shares and reaped massive gains.
- The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security.
- After a steady rise from April 2020, Zoom stock retracted by about 8% in October, and analysts are predicting that the price might go down further.
- The way we work has been reshaped dramatically in the wake of a global upheaval.
- For the current and next fiscal years, $4.62 billion and $4.78 billion estimates indicate +2% and +3.6% changes, respectively.
Has Zoom (ZM) ever split its stock?
- If you still want to trade Zoom after doing a comprehensive analysis, it is important to think of how Zoom stock will slot in your portfolio.
- For the current and next fiscal years, $4.61 billion and $4.78 billion estimates indicate +1.9% and +3.6% changes, respectively.
- Beyond what we’ve stated above, we have also rated the stock for Growth, Momentum, Stability, and Sentiment.
- Trading and investing involve substantial risk, and you may lose the entire amount of your principal investment or more.
If you still want to trade Zoom after doing a comprehensive analysis, it is important to think of how Zoom stock will slot in your portfolio. Mainly, you need to check how diversified your portfolio is and the impact of adding a new asset. The rule of thumb is to reduce the risk and exposure by spreading money in different industries, companies, and geographies.
Zoom Communications Inc. (ZM)
Zoom Video is expected to post earnings of $1.30 per share for the current quarter, representing a year-over-year change of +0.8%. Over the last 30 days, the Zacks Consensus Estimate remained unchanged. Despite the near-term challenges in a post-pandemic landscape where demand for video conferencing has somewhat stabilized, ZM remains well-positioned to invest in its AI-driven growth strategy. The company has a solid financial footing to fund its AI initiatives with $7.40 billion in cash reserves and a $1.5 billion stock buyback program. In the case of Zoom Video, the consensus sales estimate of $1.16 billion for the current quarter points to a year-over-year change of +2.3%. The $4.64 billion and $4.76 billion estimates for the current and next fiscal years indicate changes of +2.4% and +2.7%, respectively.
Zoom formed partnerships with strategic partners to boost its growth, including Slack Technologies, Box, Atlassian, and Salesforce.com. Salesforce.com invested heavily during Zoom’s IPO but later sold all its shares and reaped massive gains. Compared to the Zacks Consensus Estimate of $1.13 billion, the reported revenues represent a surprise of +1.41%. Zoom Video Communications scored higher than 76% of companies evaluated by MarketBeat, and ranked 210th out of 657 stocks in the computer and technology sector.
The monthly returns are then compounded to arrive at the annual return. Only Zacks Rank stocks included in Zacks hypothetical portfolios at the beginning of each month are included in the return fxtm review calculations. Certain Zacks Rank stocks for which no month-end price was available, pricing information was not collected, or for certain other reasons have been excluded from these return calculations. Zacks may license the Zacks Mutual Fund rating provided herein to third parties, including but not limited to the issuer. Having a strong externally audited track record, our proprietary stock rating tool, the Zacks Rank, offers a more conclusive picture of a stock’s price direction in the near term, since it effectively harnesses the power of earnings estimate revisions. Due to the size of the recent change in the consensus estimate, along with three other factors related to earnings estimates, Zoom Video is rated Zacks Rank #3 (Hold).
While earnings growth is arguably the most superior indicator of a company’s financial health, nothing happens as such if a business isn’t able to grow its revenues. After all, it’s nearly impossible for a company to increase its earnings for an extended period without increasing its revenues. On May 21, ZM announced that post-quantum end-to-end encryption (E2EE) was available globally for Zoom Workplace, specifically Zoom Meetings, with Zoom Phone and Zoom Rooms coming soon. The launch of the new security enhancement makes ZM the first UCaaS company to offer a post-quantum E2EE solution for video conferencing. The upgrade addresses future threats from quantum computers capable of decrypting current encrypted traffic later, a proactive measure to enhance data protection.
Moreover, ZM’s forward EV/EBIT ratio of 6.23x is 69.5% below the industry average of 20.43x. According to founder and CEO Eric Yuan, the platform has matured and is now positioned as “ready for prime time.” Its comprehensive suite includes AI-powered agent support, chatbot functionalities, and advanced analytics capabilities. On March 25, ZM launched its AI-powered collaboration platform, Zoom Workplace, and introduced 40 innovations to help reimagine teamwork. The platform includes features like AI-powered lighting, noise cancellation, and virtual assistants to enhance productivity and employee engagement. To succeed in Zoom trading, it is prudent to follow its performance and the latest analysis by experts closely. Because of the anticipated high volatility, make sure to manage your risk well by only trading with a small portion of your equity in every trade and using stop-loss orders correctly.
Zoom Video Communications (ZM Quick QuoteZM – Free Report) is one of the stocks most watched by Zacks.com visitors lately. So, it might be a good idea to review some of the factors that might affect the near-term performance of the stock. Copyright © 2025 FactSet Research Systems Inc.© 2025 TradingView, Inc. Top institutional investors of Zoom Video Communications include Vanguard Group Inc. (8.12%), AQR Capital Management LLC (2.43%), T. Rowe Price Investment Management Inc. (2.10%) and UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC (1.24%).
Stock Ideas and Recommendations
A good broker should also have low transaction fees so that you can keep your costs low. The broker should also have an all-around trading ZM stock analysis to help you make the right decision. Zoom’s history can be traced back to 1997 when Eric Yuan, the company’s CEO and founder, came to the U.S.
Scores are calculated by averaging available category scores, with extra weight given to analysis and valuation. Zoom Video is graded B on this front, indicating that it is trading at a discount to its peers. Click here to see the values of some of the valuation metrics that have driven this grade. In terms of forward non-GAAP P/E, ZM is trading at 11.63x, 50.3% lower than the industry average of 23.43x. Likewise, the stock’s forward EV/EBITDA and EV/Sales multiples of 5.92 and 2.36 are 59.5% and 19.5% lower than the respective industry averages of 14.60 and 2.93.