Investing in Zoom Stock ZM - Daddy Tv

Still, fortfs the bear estimate calls for a $700-per-share or less stock price, amounting to more than a 10-fold gain from current levels if that price target holds. As Wood and others have stated, Zoom is much more than an online meeting platform. It is a comprehensive communications ecosystem that includes team chat platforms, online whiteboards, VoIP phone service, workspaces, email, and other services.

Earnings Per Share

Zoom, which changed its name from Zoom Video Communications to Zoom Communications on Monday, ended the quarter with approximately 192,400 enterprise customers. Online monthly average churn reached an all-time low of 2.7% in the quarter. 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.

You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter. Still, operating income fell during that period, and much of the gain came from $114 million in “other income,” which consists of income from interest, foreign currency, and marketable securities. Unfortunately for Zoom bulls, that “increase” is likely a one-time event. Between the AI tool and its expected growth in hybrid and remote knowledge workers, Ark Invest believes Zoom’s average revenue per user (ARPU) will grow by 26% yearly. Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.

The company expects adjusted earnings per share for the period to be between $1.18 and $1.20, coming in significantly ahead of the average analyst estimate’s previous call for per-share earnings of $1.15. 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 +24.10% per year. These returns cover a period from January 1, 1988 through October 7, 2024.

Has Zoom (ZM) ever split its stock?

Zoom even initiated new growth efforts, building out an artificial intelligence (AI)-driven communications ecosystem. Then there is the endorsement of Ark Investment Management’s CEO Cathie Wood, whose bold predictions regarding other tech stocks (like Tesla and Bitcoin) have come to pass. Wood and her team predicted a $1,500-per-share price target for Zoom by 2026, a 22-fold gain from current levels.

Zoom Video Communications, Inc. (ZM) Q3 2025 Earnings Call Transcript

To see all exchange delays and terms of use please see Barchart’s disclaimer. Zoom has fought back by launching more comprehensive communications tools, starting with Zoom Team Chat. Now, Zoom offers its own full-suite Zoom Workplace solution with Google- and Microsoft-style Office productivity apps, a business email client, and more. By the end of 2020, Zoom’s year-over-year revenue had quadrupled, but by early 2022, the projections had changed, as Wedbush analyst Dan Ives predicted that “the work from home beneficiaries…

Moving forward, Zoom seems to be focusing on your overall workday, not just your morning or afternoon video call. It already has Zoom Docs, which lets you work collaboratively on documents both in and out of meetings, and Team Chat, which lets you access a meeting chat, share a whiteboard, jump into a meeting, and more. Per the Zacks model, the combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases fxtm forex broker review the odds of an earnings beat. But that’s not the case here.ZM has an Earnings ESP of 0.00% and sports a Zacks Rank #2 at present.

For the full year, Zoom is guiding for sales of $4.6 billion — a target that fell slightly short of the average analyst call for revenue of $4.66 billion. On the other hand, guidance for a profit between $4.85 per share and $4.88 per share topped the average analyst estimate for a per-share profit of $4.72 for the year. Zoom Video Communications (ZM Quick QuoteZM – Free Report) is slated to release its third-quarter fiscal 2025 results on Nov. 25.Zoom expects third-quarter fiscal 2025 revenues between $1.162 billion and $1.165 billion.

Morgan Stanley analyst Meta Marshall maintained an Equal-Weight rating and raised the price target from $68 to $86. 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 fxdd forex broker review be integrated across a broad range of devices. Zoom Video’s stock is undervalued, trading at 15x forward free cash flow, with 30% of its market cap in cash and no debt. Despite modest revenue growth, Zoom’s strong balance sheet and strategic inves…

Zoom Video Communications Inc ZM shares are trading lower on the heels of the company’s third-quarter financial results. The stock is off the lows of the session as analysts lift price targets following the print. Zoom recorded non-GAAP (adjusted) earnings per share of $1.42 on sales of $1.15 billion in Q4. Meanwhile, the average analyst estimate had called for the business to post an adjusted per-share profit of $1.15 on revenue of $1.13 billion.

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• They include legacy web-based meeting service providers such as Cisco Systems Inc.’s (CSCO) WebEx and LogMeIn Inc.’s GoToMeeting.
• The company highlighted strength in large accounts and reported year-over-year revenue growth of 7.1% from customers contributing more than $100,000 in the trailing 12-month period.
• If Zoom can start monetizing some of the AI potential Ark Invest sees, it could inspire another bull market in its stock.

“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. The Motley Fool has positions in and recommends Zoom Video Communications. 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. Meetings on the platform can host as many as 1,000 participants, while webinars can scale up to as many as 50,000.

According to 25 analysts, the average rating for ZM stock is “Hold.” The 12-month stock price forecast is $84.61, which is a decrease of -0.88% from the latest price. Zoom Video Communication (ZM) and Agilent Technologies (A) react to their prospective earnings performances in Monday’s extended hours trading session. Asking for a Trend host Josh Lipton breaks down the latest action surrounding these two stocks.

Zoom and Agilent Technologies earnings: After-Hours Movers

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. Department of Justice-led panel, named Team Telecom, was investigating the proposed merger’s potential national security risks. Videoconferencing platform Zoom Video Communications Inc. on Monday offered up third-quarter results and an outlook that came in above Wall Street’s expectations, helped by growth in its key segment g… Select to analyze similar companies using key performance metrics; select up to 4 stocks. Please bear with us as we address this and restore your personalized lists.