According to Zoom’s 2Q presentation (it will announce 3Q next week), the top-line revenue is relatively steady at $1 billion, as are earnings. I suppose this is only natural after the massive surge in 2020. According to its short history, the best time to buy Zoom stocks is when the global pandemic just started.

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How to buy Zoom Video Communications stock

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. Zoom Video Communications, Inc provides unified communications platform in the Americas, the Asia Pacific, Europe, the Middle East, and Africa. Scotiabank upgraded shares of Zoom Video Communications to a “hold” rating in a research report on Tuesday, November 19th.

Its registered office and its principal place of business is at Office 207 and 208, 15th Floor Floor, Al Sarab Tower, ADGM Square, Al Maryah Island, Abu Dhabi, United Arab Emirates (“UAE”). With innovative investment tools and a collaborative trading community, eToro empowers millions of users in over 100 countries to trade and invest in a simple and transparent way. The company beat consensus EPS estimates in each of the trailing four quarters. The company topped consensus revenue estimates each time over this period. 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.

• If you are thinking of ZM stock trading, here is a demonstration of how to go about it.
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Strategic Financial Concepts LLC Makes New Investment in Zoom Video Communications, Inc. (NASDAQ:ZM)

Several ETFs that feature Zoom as a holding include Fidelity Cloud Computing ETF (FCLD -0.49%), Invesco ESG NASDAQ Next Gen 100 ETF (QQJG -0.75%), and Fidelity Value Factor ETF (FVAL -0.5%). Online average monthly churn was just 2.9%, and the percentage of online monthly recurring revenue from online customers with an ongoing term of service lasting at least 16 months was up from one year ago. This means that fewer customers are discontinuing their Zoom subscriptions, which are still the primary source of revenue for the business, while more customers are maintaining contracts with the company for prolonged durations.

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Get stock recommendations, portfolio guidance, and more from The Motley Fool’s premium services. Your investment style can dictate which kind of fund is best for your portfolio. Over the trailing 12 months, Zoom has reported net income of about $876 million on revenue of $4.6 billion. In the first half of Zoom’s fiscal 2025, it generated net income of $435.3 million, up 121% from the first half of fiscal 2024. Before you hit the buy button, you’ll need to choose from various types of order options.

Zoom Video Communications (ZM): New Buy Recommendation for This Technology Giant

Zoom is a cloud-based conferencing software that can be used via your browser, desktop or mobile application. Zoom enables users to virtually interact with contacts when a physical meeting is not possible, such as if you work remotely. Zoom is more than a video chat Forex eas software, as it allows users to record meetings, share one another’s screens and create annotations. This flexibility results in the ability to collaborate efficiently on projects for work or education. In a report released yesterday, Catharine Trebnick from Rosenblatt Securities maintained a Buy rating on Zoom Video Communications (ZM – Research Report), with a price target of $95.00.

Before & After Markets

If you’re still keen after doing some research, consider how Zoom stock would slot in among the rest of your portfolio. Specifically, look at how diversified your portfolio is and what this new investment would mean for your asset allocation. A general guideline for investors is to spread money across different companies, industries and geographies, thereby reducing risk and exposure to any one stock’s sudden movements. The pandemic also marked Zoom’s first foray into selling hardware products, with offerings like Zoom Rooms and Zoom Phone becoming available to customers who could pay a monthly subscription for hardware and accompanying services. Like with other stocks, it is important to comprehensively research Zoom and understand its performance on the market.

• Listed on Nasdaq just six months before covid-19 hit, the stock soared as every household download the Zoom software.
• 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.
• So, it’s important to know a company’s potential revenue growth.

Zoom launched its artificial intelligence (AI)-powered assistant Zoom AI companion in 2023, and a new AI-powered collaboration platform called Zoom Workplace in 2024. Zoom has been faced with headwinds as growth has normalized in recent years from pandemic heights, and it announced it was slashing its workforce by 15% in 2023 an an effort to manage costs. In 2017, Zoom hit a $1 billion valuation after raising $100 million in Series D funding from Sequoia Capital. It also hosted its first annual user conference (Zoomtopia) in 2017 and launched its telehealth platform. Early on in its business journey, the company raised $3 million in seed money from venture capitalists and various company leaders, including the founder of WebEx.

Most firms also give you various account options that you can open, ranging from a standard taxable brokerage account to tax-advantaged retirement accounts. Deciding which brokerage account you want to use is a decision that should revolve around your investing priorities, goals, and interests. Most brokerage firms will let you invest in a wide range of asset classes, including individual stocks, bonds, mutual funds, and more. Zoom is currently trading at an overvalued rate, with its 12-month-trailing P/E ratio​ approximately 444x times its EPS. However, activtrades forex broker if the company keeps building upon its financial results and gains market share in the video conferencing industry, it could result in a promising future for the relatively new company. (New to this? See how to open a brokerage account.) In short, you’ll want to look for a broker that has a low account minimum, no trade commissions and a user-friendly trading platform.

With over 13 years in business under its belt, Zoom is also much more than a software business, although Zoom Meetings remains a core part of the business and a market leader in videoconferencing solutions. Besides products like Zoom Phone and other workplace tools and solutions, its AI investments could drive meaningful growth for the business over the next five to 10 years. Both exchange rates and share prices fluctuate in real time, so the costs estimated here should be considered as a guide only. Always refer to the platform itself for availability and pricing. If you are investing in the long term, buying Zoom shares through a stockbroker may be a better option.

ZM vs App Stocks

Pacer Advisors Inc. raised its stake in shares of Zoom Video Communications by 4.4% in the third quarter. Pacer Advisors Inc. now owns 5,480,179 shares of the company’s stock valued at $382,188,000 after acquiring an additional 233,241 shares during the last quarter. Geode Capital Management LLC raised its stake in shares of Zoom Video Communications by 4.2% in the third quarter. Geode Capital Management LLC now owns 4,595,435 shares of the company’s stock valued at $320,177,000 after acquiring an additional 184,518 shares during the last quarter.

A simple, equally-weighted average return of all Zacks Rank stocks is calculated to determine the monthly return. 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. 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 have been excluded from these return calculations.

If you want to take advantage of tax-free investment accounts you can open an investment ISA account with most stockbrokers, rather than a general investment account. Other institutional investors also recently added to or reduced their stakes in the company. FMR LLC raised its stake in shares of Zoom Video Communications by 23.8% in the third quarter.