Zoom stock analysts had projected earnings of $1.15 a share on sales of $1.13 billion. Yuan then became Cisco’s corporate vice president of engineering for collaboration software. He later formed San Jose, Calif.-based Zoom Video in 2011. The Zoom IPO in April 2019 raised $752 million, with shares priced at 36.

1. Sales growth slowed for the ninth-straight quarter as the company adjusts to slower product demand in the post-coronavirus emergency era.
2. 18 analysts have issued 12 month price objectives for Zoom Video Communications’ shares.
3. Since then, ZM shares have decreased by 11.5% and is now trading at $63.64.
4. Zoom’s growth has moderated dramatically since the Covid pandemic, and the company is projecting a revenue increase of less than 2% for the current fiscal year.
5. Although the company still must find a way to get top-line growth going again, the stock offers investors a lot of potential upside at this bargain-basement price.
6. Zoom Workplace, the new AI-powered collaboration platform, helps reimagine teamwork, facilitate connections, and improve productivity — all within the Zoom experience users trust and love Zoom announc…

Zoom became synonymous with videoconferencing during the pandemic. Its catchy brand, simple interface, and freemium model made it more accessible than enterprise-oriented competitors like Cisco Systems’ Webex. The ifc markets review videoconferencing company faces a lot of near-term challenges. 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.

ZM Stock News Headlines

Those new features could widen its moat and lock in higher-growth enterprise customers, which accounted for 58% of its revenue in fiscal 2024. But it’s unclear if those features will reignite its top-line expansion or drive its evolution into a more diversified cloud-based communication services company. So for etoro review now, analysts expect Zoom’s revenue to only increase at a compound annual growth rate (CAGR) of 3% from fiscal 2024 to fiscal 2026. 18 analysts have issued 12 month price objectives for Zoom Video Communications’ shares. On average, they predict the company’s stock price to reach $77.56 in the next year.

Zoom shares jump as quarterly results beat on top and bottom lines

Also, Zoom morphed into a social phenomenon as making video calls became routine for consumers to keep in touch with family and friends. Remote learning and needs in telemedicine also boosted demand for Zoom Video’s ifc markets review cloud-based services. Rather than increase revenue, Zoom Video expects gen AI tools to retain and add customers. Get stock recommendations, portfolio guidance, and more from The Motley Fool’s premium services.

Price Target and Rating

You still want to see better growth, which could ultimately depend on Zoom’s ability to increase spending by existing clients, since the company has more than 220,000 enterprise customers today. Shares bounced on the earnings report, which is encouraging for a stock that remains 88% off its former high. Zoom Phone, a cloud-calling product rolled out in 2019, lets customers set up group internet phone calls without video. The Zoom Phone replaces traditional business PBX phone systems. 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.

ZM Stock: Fundamental Analysis

This suggests a possible upside of 21.9% from the stock’s current price. View analysts price targets for ZM or view top-rated stocks among Wall Street analysts. The company also just authorized a $1.5 billion buyback plan, which is equivalent to about 7% of its outstanding shares and implies the stock is undervalued.