• Best stocks to buy now
  • Contact
  • Disclaimer
Saturday, May 28, 2022
No Result
View All Result
  • ItalianoItaliano
Best Stocks
  • News
  • Best stocks to buy nowHOT
    Best Stock To Buy Now May 13, 2022

    Best Stocks To Buy Now: Friday, May 27, 2022

    Best Stocks To Buy Now May 24,2022

    Best Stocks To Buy Now: Thursday, May 26, 2022.

    Best Stocks To Buy Now May 26

    Best Stock To Buy Now: Fourthy, 25 May 2022

    Trending Tags

    • BABA
    • DIS
    • TSLA
    • SKLZ
    • NYSE: GME
  • Categories
    • Crypto
    • Dow Jones Today
    • Pre-IPO and Startups
    • Tech Stocks
    • Utility Stocks
  • Data & Tools
    • Indices
    • Portfolio Tracker
    • Stock Quotes
    • Stock Targets
  • About us
  • News
  • Best stocks to buy nowHOT
    Best Stock To Buy Now May 13, 2022

    Best Stocks To Buy Now: Friday, May 27, 2022

    Best Stocks To Buy Now May 24,2022

    Best Stocks To Buy Now: Thursday, May 26, 2022.

    Best Stocks To Buy Now May 26

    Best Stock To Buy Now: Fourthy, 25 May 2022

    Trending Tags

    • BABA
    • DIS
    • TSLA
    • SKLZ
    • NYSE: GME
  • Categories
    • Crypto
    • Dow Jones Today
    • Pre-IPO and Startups
    • Tech Stocks
    • Utility Stocks
  • Data & Tools
    • Indices
    • Portfolio Tracker
    • Stock Quotes
    • Stock Targets
  • About us
No Result
View All Result
Best Stocks
Home Tech stocks

Why Zoom Video Communications Inc. (NASDAQ: ZM) stock traded lower lately?

by Elaine Mendonça
January 14, 2022
in Tech stocks
0
Why Zoom Video Communications Inc. (NASDAQ: ZM) stock traded lower lately?
20
SHARES
255
VIEWS
Share on FacebookShare on Twitter
Contents hide
1 Updates as of 6th of January 2020
2 Why Zoom traded lower lately?
3 Financial Performance
4 Stock Performance

Updates as of 6th of January 2020

At press time (January 6th, 2020) Zoom is still losing at the pre-market price. The video streaming giant is now trading at the price of $347.88, a 3.59% loss compared to its previous price of $360.83 at closure time on January 5th. The trend appears to be obvious: there is a direct and inverted relation with the Covid-19 pandemic. The scariest the news regarding the pandemic, the more the Zoom price – together with other stay-at-home stocks – raises. Optimistic news regarding the Covid-19 vaccine tends to make the stock lower in price. Besides this speculative trend, there is a key fact to be taken into account: Zoom has become the company leader in video streaming. With revenues of over $622.7 million in 2020 and over 300 million daily meetings, compared to just 10 million in December 2019. If Zoom can maintain its competitive advantage is likely to be maintaining its momentum regardless of the short-term speculations related to the Covid-19 happenings. The main competitors of Zoom are Cisco, Skype, Facebook Messanger, and Google Meet. This, together with emerging platforms that might pose Zoom’s leadership in the video streaming industry under discussion in the long term such as RingCentral, Cisco, and Twillo. According to Yahoo Finance, ZM’s innovation outlook is trending up based on a current score of 48 out of 99, outperforming the sector average. However, insider sentiment is negative. It is most exposed to Oracle Corporation Japan as its supplier. Over the past 4 quarters, ZM beat earnings estimates 4 times.

Why Zoom traded lower lately?

stock. Zoom Video Communications Inc. (NASDAQ: ZM) enjoyed tremendous growth in 2020 as the Covid-19 pandemic forced people to work from home that increased the demand for online video communication service providers like Zoom. Millions of people got stuck at home as governments around the world imposed lockdowns to contain the spread of the virus. Employers and their staff were left with no choice but to interact with each other through user-friendly online software. Educational institutions also started using Zoom for arranging online classes. The easy-to-use interface was the main reason why so many people preferred Zoom over rivals’ services such as Cisco’s WebEx. ZM stock value climbed nearly 400 percent in 2020. However, its share price has been on a downward trajectory over the past few weeks, as multiple Covid-19 vaccines get closer to regulatory approval, besides a few being already approved. Some analysts believe that the demand for Zoom calls will go down once life gets back to normal.
Source: Getty Images
JPMorgan stated in a note last month that mass vaccinations for the coronavirus could affect the company’s business in the coming months. The research firm decreased its ratings for Zoom from “Buy” to “Neutral,” while surprisingly raising the price target for the stock from $425 per share to $450 per share. JPMorgan added that major businesses may keep using Zoom even after the pandemic, but small entities that have less than 10 employees may no longer use the service, as vaccinations will enable face to face interaction while moving forward. On the other hand, Zoom CFO Kelly Steckelberg said in a statement late last year, “While we all hope for a vaccine as soon as possible, I think that remote work trends are here to stay.” Zoom is also making investments to sustain its growth pace. For instance, it is building local offices in different countries around the world to expand its overseas sales growth. It is also pouring a lot of money into research and development activities to explore new services and enhance existing features on the platform.

Financial Performance

Zoom last announced its quarterly financial results on November 30. It reported earnings of $198.4 million, or 66 cents per share for the three-month period ended October 31, well above 1 cent per share in the comparable period of 2019. On an adjusted basis, it reported a profit of 99 cents per share, easily beating the consensus forecast of 76 cents per share. Revenue for the quarter came in at $777.2 million, representing a surge of 367 percent on a year-over-year basis. Analysts on average were looking for revenue of $694 million.
Source: Getty Images [CEO Eric Yuan]
Speaking on the results, CEO Eric Yuan said in a statement, “We aspire to provide the most innovative, secure, reliable, and high-quality communications platform to help people connect, collaborate, build and learn on Zoom.” The company also issued guidance for the current quarter. It expects to report an adjusted profit in the range of 77 cents per share to 79 cents per share for the fourth quarter, and revenue between $806 million and $811 million. Analysts on average are expecting Zoom to report adjusted earnings of 66 cents per share on $730.1 million in revenue.

Stock Performance

Zoom stock started in 2020 at around $68 per share. Its share price gradually started rising after the Covid-19 outbreak. Its share price climbed sharply at the end of August after reporting strong financial results for the second quarter. ZM share price touched a high price of nearly $570 in October. However, the stock has been trading flat since November after successful efficacy data from late-stage trials of two Covid-19 vaccines, which received approval from the FDA last month. Overall, Zoom stock soared approx. 400 percent in 2020. Analysts are also bullish on Zoom. The consensus price target for the stock is $467 per share, significantly higher than the stock’s previous closing price of $337.32. Most analysts have been recommending investors to “Hold” the stock.
Tags: Covid-19Eric YuanJPMorganKelly SteckelbergNASDAQ: ZMZoomZoom Video Communications Inc.
Elaine Mendonça

Elaine Mendonça

My focus is on uncovering early-stage ideas with the potential to have a lasting impact. My educational background includes a bachelor's degree in finance, an MBA, and two tests completed - the CFA and CMT. Over the last nine years, I have managed my investment portfolio using fundamental analysis and value investing, emphasizing long-term time horizons.

Latest

AMC-News

AMC Stock Gains Big On Market Rebound

14 hours ago
Rosneft Oil Co Stock

Rosneft Oil Co and Others Exits Market: Smaller Firms Takes Advantage

16 hours ago

Popular News

  • AMZN Stock Forecast

    Amazon Stock Forecast And Price Prediction (Updated May 2022)

    17 shares
    Share 0 Tweet 0
  • Tesla Stock: Buy Now Or After Split?

    15 shares
    Share 0 Tweet 0
  • Stocks to buy now – April 2nd, 2022

    16 shares
    Share 0 Tweet 0
  • What and how to research before you begin forex trading

    15 shares
    Share 0 Tweet 0
  • The Chick Fil A Stock Price and Net Worth: The Company and Its Value

    28 shares
    Share 0 Tweet 0

Free Stocks Recommendations

Get notified everytime we recommend a stock.
Marketing by

DISCLAIMER

Nothing on this website should be considered personalized financial advice. Any investments recommended here in should be made only after consulting with your personal investment advisor and only after performing your own research and due diligence, including reviewing the prospectus or financial statements of the issuer of any security.

The Best Stocks, its managers, its employees, affiliates and assigns (collectively “The Company”) do not make any guarantee or warranty about the advice provided on this website or what is otherwise advertised above.

READ MORE

Follow us on Social Media
Facebook – YouTube – Twitter

Write for us
Finance – Business

Best-Stocks-Logo_dark

Categories
Best Stocks to buy now
Crypto
Dow Jones Today
Pre-IPO and Startups
Tech stocks
Utility Stocks

Data and Tools
Quote
Target
Wealth
Converter
Dow Jones Today

Best Stocks to Buy Now

We are a financial media dedicated to providing stock recommendations, news, and real-time stock prices.

Newsletter

Get free stock recommendations and real-time news. Our portfolio has returned over 100% in 2020.

Marketing by
  • Disclaimer
  • Best stocks to buy now
  • Contact
  • Write for us – Finance, Crypto

© 2022 Best Stocks

No Result
View All Result
  • Home
  • News
  • Best stocks to buy now
  • Categories
    • Crypto
    • Dow Jones Today
    • Pre-IPO and Startups
    • Tech stocks
    • Utility Stocks
  • Data & Tools
    • Indices
    • Portfolio Tracker
    • Stock Quotes
    • Stock Targets
  • About us
  • English
  • Italiano

© 2022 Best Stocks