The company topped consensus revenue estimates each 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.
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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.
- In response, the company continues to forge ahead with its advancements, such as Zoom Docs, an upcoming AI-powered workspace for documentation, project tracking, and management tasks.
- Select to analyze similar companies using key performance metrics; select up to 4 stocks.
- The rule of thumb is to reduce the risk and exposure by spreading money in different industries, companies, and geographies.
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.
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.
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.
How many shares of Zoom (ZM) stock are there?
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 disclaimer. 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.
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 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).
Profit margin
The POWR Ratings are calculated by accounting for 118 distinct factors, with each factor weighted to an optimal degree. Enjoy a premium experience designed for seasoned traders with rewarding benefits including access to the widest selection of advanced trading tools available. Explore some of our must-have products that keep everyone trading with us time and again. Beyond what we’ve stated above, we have also rated the stock for Growth, Momentum, Stability, and Sentiment. fxtm review The way we work has been reshaped dramatically in the wake of a global upheaval.
- Even though a company’s earnings growth is arguably the best indicator of its financial health, nothing much happens if it cannot raise its revenues.
- Zacks Rank stock-rating system returns are computed monthly based on the beginning of the month and end of the month Zacks Rank stock prices plus any dividends received during that particular month.
- On March 25, ZM launched its AI-powered collaboration platform, Zoom Workplace, and introduced 40 innovations to help reimagine teamwork.
- For instance, MSFT is upgrading its products with artificial intelligence (AI) technology from startup OpenAI.
- The Zacks Consensus Estimate has changed +0.4% over the last 30 days.
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. Zoom Communications Inc. provides an Artificial Intelligence-first work platform for human connection in the Americas, the Asia Pacific, Europe, the Middle East, and Africa.
Zoom Video Communications (ZM Quick QuoteZM – axes broker 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%).
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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 trading potential. We offer a superior trading environment that puts traders in the best position to profit.
Like with other stocks, it is important to comprehensively research Zoom and understand its performance on the market. One of the factors that a trader should check when selecting a company for investment is profitably, and Zoom has done excellently. However, you need also to establish whether the momentum can be sustained in the coming years.
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.
This is because we believe the fair value for its stock is determined by the present value of its future stream of earnings. You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. The web link between the two companies is not a solicitation or buffettology offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities. In response, the company continues to forge ahead with its advancements, such as Zoom Docs, an upcoming AI-powered workspace for documentation, project tracking, and management tasks.
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.
