Zoom Video Communications, Inc. provides unified communications platform in the Americas, the Asia Pacific, Europe, the Middle East, and Africa. It serves individuals; and education, entertainment/media, enterprise infrastructure, finance, government, healthcare, manufacturing, non-profit/not for profit and social impact, retail/consumer products, and software/Internet industries. 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. 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.
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In predicting a stock's future price performance, it's crucial to determine whether its current price correctly reflects the intrinsic value of the underlying business and the company's growth prospects. But profitability is just one factor investors should consider before buying a stock. Spend some face time with Zoom's most recent annual report as well as its S-1 filing, both available on its investor relations website. These are a treasure trove of information about the company’s operations, financials, customers, case studies, leadership team, challenges and growth opportunities. In other words, all the things that can help investors determine if Zoom is a worthy addition to their portfolio. As a long-term investor, I don't ignore past performance, but I'm generally more interested in where the company is heading.
Research and a sense of your overall portfolio can help you decide how much money to invest in Zoom. So, too, might your opinion on how long people will continue to work and dial in from home. We believe everyone should be able to make financial decisions with confidence. And while our site doesn’t feature every company or financial product available on the market, we’re proud that the guidance we offer, the information we provide and the tools we create are objective, independent, straightforward — and free. © 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.
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. Department of Justice-led panel, named Team Telecom, was investigating the proposed merger’s potential national security risks.
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 be integrated across a broad range of devices. There is one caveat worth mentioning — Zoom's growth in the coming years is expected to let up significantly from current levels.
As the pandemic unwinds and Zoom becomes a more mature company, it's inevitable that sales growth will come down from its all-time highs. https://forexanalytics.info/ Analysts are forecasting Zoom's revenue to come in at $7.7 billion in fiscal year 2026, indicating an average annualized growth of 13% from 2022 estimates. Double-digit revenue growth for the next five years surely isn't bad, but it doesn't compare to the company's 160% compound annual growth rate over the past three years. Without considering a stock's valuation, no investment decision can be efficient.
The Motley Fool reaches millions of people every month through our premium investing solutions, free guidance and market analysis on Fool.com, top-rated podcasts, and non-profit The Motley Fool Foundation. 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). For the next fiscal year, the consensus earnings estimate of $5.09 indicates a change of +1% from what Zoom Video is expected to report a year ago. For the current fiscal year, the consensus earnings estimate of $5.04 points to a change of -3.3% from the prior year.
To see all exchange delays and terms of use please see Barchart's disclaimer. 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.
This puts Eric S. Yuan in the top 30% of approval ratings compared to other CEOs of publicly-traded companies. New Rank-Based ScoringMarketRank™ is calculated by averaging available category scores (with extra weight given to analysis and valuation), then ranking the company's weighted average against that of other companies. Zoom ended the last quarter with $5.4 billion in cash, cash equivalents, and marketable securities and only $97 million in debt.
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- Our estimates are based on past market performance, and past performance is not a guarantee of future performance.
- Given the expected slowdown in Zoom's growth, I think it's safe to say that the company is still trading at expensive valuation multiples.
- EPS of $1.35 for the same period compares with $1.16 a year ago.
- And if earnings estimates go up for a company, the fair value for its stock goes up.
- Zoom Video Communications Inc. (ZM) offers a video-first communications platform used by millions of people worldwide for both business and personal use.
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To that end, Zoom has recently introduced Zoom Phone, Zoom Meetings, Zoom Video Webinars, and Zoom for Home. Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool's board of directors. Luke Meindl has no position in any of the companies mentioned.The Motley Fool owns and recommends Alphabet (A shares), Cisco Systems, Microsoft, and Zoom Video Communications.
Only Zacks Rank stocks included in Zacks hypothetical portfolios at the beginning of each month are included in the return calculations. Zacks Ranks stocks can, and often do, change throughout the month. Certain Zacks Rank stocks for which no month-end price was available, pricing information was not collected, or for certain other reasons trade your way to financial freedom 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. Zoom's financials remain strong, but I think the company needs to improve future growth prospects to justify trading at current valuation multiples. With revenue and earnings growth expected to pull back in the years ahead, I wouldn't be surprised to see growth-oriented investors exit their positions in Zoom stock.
The company topped consensus revenue estimates each time over this period. For Zoom Video, the consensus sales estimate for the current quarter of $1.15 billion indicates a year-over-year change of +0.9%. For the current and next fiscal years, $4.62 billion and $4.78 billion estimates indicate +2% and +3.6% changes, respectively.
NASDAQ: ZMZoom Video Communications Inc Stock
Our estimates are based on past market performance, and past performance is not a guarantee of future performance. For the current quarter, Zoom Video is expected to post earnings of $1.21 per share, indicating a change of -9.7% from the year-ago quarter. The Zacks Consensus Estimate has changed +0.4% over the last 30 days. Zoom's cloud-based service allows people in different locations with different devices to connect face-to-face and share content via video, voice and chat. And in the COVID pandemic, people increasingly turned to the service as the work-from-home era stretched on.