zoom stock forecast

Enterprise software stocks have been beaten up badly over the last year. Fears of slowing growth, high valuations, and looming recession have all played a part. Move your mouse over a quarter or year to see how estimates have changed over time. 450 employees have rated Zoom Video Communications Chief Executive Officer Eric S. Yuan on Glassdoor.com. Eric S. Yuan has an approval rating of 97% among the company’s employees.

  • ZM stock holds an Accumulation/Distribution Rating of B-plus.
  • There’s also a VGM Score (‘V’ for Value, ‘G’ for Growth and ‘M’ for Momentum), which combines the weighted average of the individual style scores into one score.
  • That figure also falls well short of the $30 billion to $70 billion in revenue Wood and her team forecast by its fiscal 2027.
  • Data may be intentionally delayed pursuant to supplier requirements.

Shares of Zoom Video Communications (ZM) jumped in after-hours trading. The company reported second quarter results that beat on both the top and bottom lines, with adjusted earnings per share of $1.3… Still, investors should stop looking at Zoom as just a videoconferencing company. Now that it has built out a full communications suite, its revenue and the number of paying customers should continue to rise.

Will ZM stock price grow / rise / go

This saved it $13 million per month while maintaining a 95% customer satisfaction score. If applied across all prospective clients, such an innovation could significantly lower call center labor costs. Considering this performance, one might understand why Zoom’s price-to-sales ratio of 5 and its forward price-to-earnings ratio of 16 may not seem like bargain valuations.

© 2023 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. 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, November 20th 2023.

Will ZM stock price drop / fall?

However, one does not need 2,000% growth in three years to beat the indexes. To match Ark Invest’s forecast, most investors will probably need to see a higher proportion of the user base subscribing to pay services. Until that number grows significantly, few investors will likely hold out for a $1,500 per share stock price over the next few years. A number of factors dictate whether stock prices rise or fall, including the company’s fundamentals and broader macro-economic factors. You should conduct your own ZM stock analysis, taking in such things as the environment in which it trades and your risk tolerance.

CCTV Telephoto Zoom Lens Market Outlook to 2031- Tamron, CBC, Fujifilm, Kenko, Kowa, Ricoh, Avenir, VS Te – Benzinga

CCTV Telephoto Zoom Lens Market Outlook to 2031- Tamron, CBC, Fujifilm, Kenko, Kowa, Ricoh, Avenir, VS Te.

Posted: Wed, 13 Sep 2023 11:43:13 GMT [source]

Its current rating indicates more funds are buying than selling. Zoom Video aims to be a player in the contact center market with its own products and services. The average analyst rating for Zoom Video stock from 19 stock analysts is “Hold”. This means that analysts believe this stock is likely to perform similarly to the overall market. Zoom Video Communications Inc.’s stock climbed in extended trading Monday, after the videoconferencing company topped expectations across the board with its financial results and forecasts.

Zoom Video Stock Forecast

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.

Paid Zoom business plans cost $15 or $20 per employee and require minimums of 10 or 50 seats. Zoom Video in early March said company President Greg Tomb, a former cloud computing executive https://1investing.in/ at Alphabet’s (GOOGL) Google, will leave. The investor’s ARK Innovation Fund dumped the stock in January, missing out on most of the chip maker’s meteoric 212% rise so far in 2023.

  • Zoom CFO Kelly Steckelberg joins ‘Squawk Box’ to discuss the company’s quarterly earnings results, which beat on top and bottom lines and raised its full-year guidance, return to work policy, and more…
  • Third quarter revenue posted a 2.9% gain compared to the preceding quarter.
  • Enterprise software stocks have been beaten up badly over the last year.

That all gives investors good reason to question whether the company will be able to produce sustainable earnings increases. According to the Wall Street Journal,15 out of 30 analysts rate Zoom stock ‘buy’ or ‘overweight’, 14 rate it ‘hold’ and one rates it a ‘sell’, with an average target price of $304.18. With the coronavirus emergency over, Zoom Video Communications (ZM) faces intensified 10 qualities of an entrepreneur competition and slowing growth. Revenue growth for Zoom stock depends on its success in the corporate market. And, the outlook for ZM stock is tied to whether the company morphs into a broader business communications platform. The confusion comes in as innovation-focused fund manager Cathie Wood and her team at Ark Invest forecast a $1,500 per share price target for Zoom in 2026.

Will ZOOM stock price fall / drop?

Zoom releases a bunch of new features but apparently they aren’t enough to eclipse its disappointing earnings last week, and the stock slips a further 4%. Might take more than a band-aid to fix this bleed…Zoom releases a bunch of new features but apparently they aren’t enough to eclipse its disappointing earnings last week, and the stock slips a further 4%. Zoom Video has built up alliances with the likes of Salesforce.com (CRM), Atlassian (TEAM) and Box (BOX).

zoom stock forecast

This puts Eric S. Yuan in the top 30% of approval ratings compared to other CEOs of publicly-traded companies. Sign-up to receive the latest news and ratings for Zoom Video Communications and its competitors with MarketBeat’s FREE daily newsletter. “We remain impressed by Zoom’s ability to over-deliver simultaneously in terms of both growth and margins,” said Dan Romanoff, senior equity analyst at research firm Morningstar post Zoom’s third quarter results in late-November. “Last year, they were putting up almost 400% year-over-year (revenue) growth, which is unheard of in any business. In its latest quarterly results, Zoom posted a 35% year-on-year increase in total revenue to $1.05bn. Third quarter revenue posted a 2.9% gain compared to the preceding quarter.

“Zoom reached 5.5 million paid phone seats at the end of 2023, up over 100% year-over-year,” said Baird’s Power. “The company expects that to become a 10% revenue segment early this year and perhaps as high as 25% in the future.” As the coronavirus crisis eases, retaining small businesses as well as corporate accounts will be one key to Zoom’s success. For customers with one to 10 employees, renewals are expected to slow as the economy reopens and shelter-in-place orders lift. In May, Zoom announced an investment in AI startup Anthropic to support research roadmaps.

On 2 December, software giant Microsoft introduced a new low-cost tier of its Teams communication service for small businesses. Zoom’s cloud-based software sets up video calls, with chat tools available. However, Ark Invest is correct to point out that Zoom has ventured beyond video conferencing. Much of its innovation has focused on add-ons such as webinars, rooms, and contact centers, and the company has invested heavily in products and services enabled by AI.

“ZM” Stock Prediction for Next Days and Weeks

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 Nasdaq composite has shot up 35% amid buzz over generative artificial intelligence technology. In a plus, ZM stock moved above its 200-day moving average on Aug. 31.

As an investor, you want to buy stocks with the highest probability of success. That means you want to buy stocks with a Zacks Rank #1 or #2, Strong Buy or Buy, which also has a Score of an A or a B in your personal trading style. Volatility profiles based on trailing-three-year calculations of the standard deviation of service investment returns. Get this delivered to your inbox, and more info about our products and services. “That this genuinely bearish stock report only led to a brief temptation to sell speaks volumes and underlines the market mentality,” said Tamas Varga of oil broker PVM. Zoom faces questions about its ability to deliver growth as pandemic-related tailwinds begin to wane for its stay-at-home video conferencing solutions.

Anthropic’s AI model will be integrated into Zoom’s Contact Center platform. Sales growth slowed for the ninth-straight quarter as the company adjusts to slower product demand in the post-coronavirus emergency era. Analysts have debated when decelerating sales will hit a bottom. Meanwhile, recently told its employees to report to its offices on a more regular basis. Amid Covid-19 emergency, demand for Zoom videoconferencing software surged as businesses told employees to work from home. Activision Blizzard shares ATVI, +0.28% rose 1% after Microsoft reached a deal with Ubisoft Entertainment to license the cloud streaming rights to Activision games, in an attempt to secure approval fr…