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’s latest fiscal year (FY) was FY 2021, which ended Jan. 31, 2021.

Admittedly, investors like Ark Invest may have to adjust their expectations. With 2026 just two years away, Ark Invest’s base case estimates are looking increasingly unlikely to come to pass, and it may even fall short of the $700-per-share bear case estimate. Also, 3% revenue growth will probably not inspire growth-oriented investors. 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.

According to MarketBeat, the company currently has a consensus rating of „Hold” and an average price target of $76.61. Zoom is a member of the information technology sector and operates within the software industry. They include legacy web-based meeting service providers such as Cisco Systems Inc.’s (CSCO) WebEx and LogMeIn Inc.’s GoToMeeting. Rivals also include bundled productivity solution providers with video functionality such as Alphabet Inc.’s (GOOGL) Google G Suite and Microsoft Inc.’s (MSFT) Microsoft Teams.

Zoom Video Communications (ZM) Stock Sinks As Market Gains: What You Should Know

And when a stock’s fair value is higher than its current market price, investors tend to buy the stock, resulting in its price moving upward. Because of this, empirical studies indicate a strong correlation between trends in earnings estimate revisions and short-term stock price movements. 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 beaxy review from January 1, 1988 through October 7, 2024.

1. Zoom’s expanding international footprint is a major growth driver.
2. However, its Zacks Rank #2 does suggest that it may outperform the broader market in the near term.
3. Department of Justice-led panel, named Team Telecom, was investigating the proposed merger’s potential national security risks.
4. The company is forecasted to report an EPS of $1.31, showcasing a 1.55% upward movement from the corresponding quarter of the prior year.
5. The company’s cloud-native platform enables face-to-face video and connects users across various devices and locations in a single meeting.
6. Institutional investors and hedge funds own 66.54% of the company’s stock.

Stifel Nicolaus upped their target price on Zoom Video Communications from $65.00 to $70.00 and gave the stock a „hold” rating in a research report on Thursday, October 10th. Needham & Company LLC reissued a „hold” rating on shares of Zoom Video Communications in a research note on Friday, October 11th. Finally, Bank of America cut their price target on shares of Zoom Video Communications from $78.00 to $75.00 and set a „neutral” rating on the stock in a report on Thursday, August 22nd. Two research analysts have rated the stock with a sell rating, thirteen have assigned a hold rating and six have issued a buy rating to the stock.

That was not enough to persuade investors to buy Zoom stock, as it is up just 1% from year-ago levels. Admittedly, the company’s results have come nowhere close to matching that expected growth. In the first nine months of 2023, revenue of $3.4 billion increased by only 3% yearly.

About Zoom Video Communications Stock (NASDAQ:ZM)

The company is forecasted to report an EPS of $1.31, showcasing a 1.55% upward movement from the corresponding quarter of the prior year. Alongside, our most recent consensus estimate is anticipating revenue How to buy ecp crypto of $1.16 billion, indicating a 2.34% upward movement from the same quarter last year. Without considering a stock’s valuation, no investment decision can be efficient. 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.

Zoom Video Communications Stock Analysis – MarketRank™

Analysts estimate that Zoom Video Comms will report an earnings per share (EPS) of $1.31. Zoom Video Communications’ top institutional shareholders include FMR LLC (4.04%), State Street Corp (1.98%), Pacer Advisors Inc. (1.78%) and Geode Capital Management LLC (1.49%). Insiders that own company stock include Santiago Subotovsky, Kelly Steckelberg, Velchamy Sankarlingam, Janet Napolitano, Aparna Bawa, Shane Crehan, Jonathan Chadwick, Ryan Azus and Eric S Yuan. Please bear with us as we address this and restore your personalized how to implement the demarker indicator lists. The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in the groups.

Valuation Measures

In that same time, the Computer and Technology sector gained 0.18%, while the S&P 500 gained 0.62%. Zoom Video reported revenues of $1.16 billion in the last reported quarter, representing a year-over-year change of +2.1%. Analysts have given Zoom Video Comms a total of 6 ratings, with the consensus rating being Buy. The average one-year price target is $83.17, indicating a potential 2.43% upside. During that period, its net income of $339 million surged 63% higher.

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. Zoom Video Communications, Inc provides unified communications platform in the Americas, the Asia Pacific, Europe, the Middle East, and Africa. Our analysis is essentially based on how sell-side analysts covering the stock are revising their earnings estimates to take the latest business trends into account. When earnings estimates for a company go up, the fair value for its stock goes up as well.