ZM – Zoom Video Communications Inc Forecast – .
I initiated coverage on Zoom with my article published on April 15, This article provides an update on the growth outlook for the company. Zoom’s top line is expected to grow in calendar year or fiscal yearbut its stock price might not increase this year as result of lower growth expectations.
Zoom stock is not a good Buy for me now, as its rich valuations are not aligned with the company’s slower pace of growth going forward. However, I am positive on Zoom Phone becoming a key growth driver for the company in time to come.
Considering these factors, I continue to rate Zoom’s shares as Neutral. It is relevant to note Zoom’s stock price reaction post-1Q FY YE January 31, results announcement, which was released on June 1, after trading hours.
Initially, ZM’s share price declined marginally by ZM’s subsequent share price increase in the past two weeks is likely due to selected sell-side analyst bullishness and the launch of new product solutions relating to Zoom Phone.
Last week, Zoom Video Communications was zoom video stock forecast 2021 – zoom video stock forecast 2021: as one of the software industry picks by RBC, considering that its products are “a critical component of the coming hybrid work norm” and that “the sharp pullback has created an attractive entry point” for the stock.
Earlier on June 9,Zoom revealed that it has introduced the new Zoom Phone Appliances, which is “an all-in-one desk phone solution for HD video meetings, phone calls, and interactive whiteboarding. In my April initiation article for Zoom, I had noted that “increasing revenue from new products like Zoom Phone” is a key growth driver for the company.
The new Zoom Phone Appliances, which the company refers to as a “new device category” for the Zoom Phone at its recent earnings call, is expected to further boost the sales of the Zoom Phone in the near future. Source: Zoom’s June zoom video stock forecast 2021 – zoom video stock forecast 2021:, Press Release. I evaluate Zoom’s recent 1Q FY financial performance and its growth prospects for calendar vidwo and fiscal year February 1, to January 31, in the subsequent section.
Zoom’s financial performance in the first quarter of fiscal was excellent on a Zooj comparison and exceeded market expectations. At the company’s 1Q FY results briefing on June zoom video stock forecast 2021 – zoom video stock forecast 2021:,Zoom Video Communications highlighted that “revenue upside in the quarter carried through to the bottom line “, which implied that operating leverage was the key driver of ZM’s significant improvement in profitability in the recent quarter.
Apart stpck headline financial numbers, there are two key metrics to watch for Zoom. One key metric is the revenue contribution from Zoom’s clients with less than 10 staff. In other words, this client segment drove Zoom’s growth in 1Q FYbut that might not be sustainable. In my initiation article published in AprilI mentioned that I “expect Zoom’s churn rate for its customer cohort with less than 10 staff to be significantly higher than its customer cohort with more than 10 viedo going forward.
This is aligned with the company management’s comments at the recent 1Q FY earnings call, where Zoom stressed that churn for the specific customer segment with less than 10 employees could be “more volatile as economies continue to reopen” because most of them are on “monthly zoom video stock forecast 2021 – zoom video stock forecast 2021: as opposed to yearly subscriptions.
Another key metric is Zoom Phone sales. On a cumulative basis, Zoom Phone sales have increased from approximately one million seats as of end calendar year to around 1. With expectations that more people could be returning to offices in time to come as and when how to record zoom meeting on laptop pandemic is contained, the increased sales for the Zoom Phone could help to offset the reduced demand for Zoom Meetings.
Also, as highlighted in the preceding section of this article, the introduction of new Zoom Phone Appliances with improved functionality catering to office needs like the interactive whiteboarding feature could help to drive the growth in Zoom Phone sales in the future.
In summary, a higher-than-expected churn rate for Zoom’s customer segment with less than 10 staff is a key downside risk, while Zoom Phone sales could surprise on the upside and boost the company’s top line. Looking ahead, there is little doubt that Zoom’s revenue and earnings will be higher in calendar year or fiscal yearbut it is the future pace of growth that matters. The forward-looking numbers for the full-year are realistic, taking into account the strong 1Q FY results and the vvideo slow-down in subsequent quarters as WFH Work-From-Home tailwinds ease.
Zoom’s slower pace of growth in the next two years is not surprising. The churn for ZM’s client segment with fewer than 10 staff will likely increase going forward and become a drag on the company’s overall sales growth.
At zoom video stock forecast 2021 – zoom video stock forecast 2021: same zoo, it is reasonable to assume that Zoom still derives most of its revenue from its core Zoom Meetings product, and it will take some zoom video stock forecast 2021 – zoom video stock forecast 2021: for Zoom Phone to be a significant contributor to the company’s top line. In other words, Zoom’s revenue and net profit will go up in calendar yearbut ZM’s stock price might not go up for the rest of the year as investors gradually price in lower growth expectations for the stock.
Despite this, Zoom’s forward Enterprise Value-to-Revenue valuations are the second highest in the peer group. As such, I don’t view Zoom’s valuations as sufficiently attractive to justify a Buy rating. Sign up here to get started today! Those who believe that the pendulum will move in one direction forever or reside at an extreme forever eventually will lose huge sums. Those who understand the pendulum’s behavior can benefit enormously. I wrote this article myself, and vdeo expresses my own opinions.
I am not receiving compensation zooom it other than from Forecxst Alpha. I have no business relationship with any company whose stock is mentioned in this article. The Value Pendulum Marketplace. I think Zoom shares are a Hold now, rather than a Buy. This article was written by.
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Zoom video stock forecast 2021 – zoom video stock forecast 2021:. Zoom (ZM) stock forecast: Bargain opportunity or slippery slope?
Edited by Alexandra Pankratyeva. Zoom has been used extensively during the Covid pandemic. Will Vidfo stock overcome forecawt recent downturn? Zoom Video Communications was founded in by Eric Yuan, who remains its chairman and chief executive.
The video conference platform attracted one million users by Based in San Jose, California, the company went public in April On 31 Zoom video stock forecast 2021 – zoom video stock forecast 2021:, Zoom stock fell On 23 November, Zoom saw its second worst day of the year as stock prices dropped Eventually, the multi-billion-dollar merger was mutually terminated by Five9 and Zoom. Zoom investors also face the risk from increasing competition. On 2 December, software giant Microsoft introduced a new low-cost tier of its Teams communication service for foeecast businesses.
However, Zoom bulls view the recent downturn as a buying opportunity. Third quarter revenue posted a 2. According to Reutersas of 6 December, Zoom stocks scored a mean rating of 2. Past performance zoom video stock forecast 2021 – zoom video stock forecast 2021: no guarantee of future results. Always remember that your zoon to trade depends on your attitude to risk, your expertise in the market, the spread of your investment portfolio and how comfortable you feel about losing money.
20021 you should never invest more than you can afford to lose. Zoom zoom video stock forecast 2021 – zoom video stock forecast 2021: questions about foreccast ability to deliver growth as pandemic-related tailwinds begin to wane for its stay-at-home video conferencing solutions.
There are no guarantees. Markets are volatile. You should conduct your own Sstock stock analysis, taking in such things as the environment in stocj it trades and your risk tolerance. And never invest money that you cannot afford to lose.
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Share this article Tweet Share Post. Have a confidential tip for our reporters? Get In Touch. The origins of Zoom Zoom Video Communications was founded in by Eric Yuan, who remains its chairman and chief executive. GME Swap Short:. Trade now. AAPL GOOG TSLA Is Zoom a good stock to buy? Why is Zoom stock down in ? Will zoom stock go продолжение здесь What You Need to Know The week ahead update on major market events in your inbox every week.
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Zoom video stock forecast 2021 – zoom video stock forecast 2021: –
Based on 20 analysts offering 12 month price targets for ZOOM VIDEO COMMUNICATIONS INC. ; Min Forecast. $% ; Avg Forecast. $+% ; Max Forecast. Forecast target price for $ Positive dynamics for Zoom shares will prevail with possible volatility of %. Pessimistic target level. Zoom Video Communications (NASDAQ: ZM) is one of Cathie Wood’s favorite stocks. Zoom skyrocketed in popularity during the early stages of the pandemic as more.
Zoom’s (ZM) Stock Forecast: Will It Keep Rising in ?.Zoom (ZM) stock forecast: Bargain opportunity or slippery slope?
Dec 06, · As of 6 December , Wallet Investor shared a bearish Zoom share price forecast, noting: “If you are looking for stocks with good return, Zoom Video Communications Inc – Class A stock can be a bad, high-risk 1-year investment option.” Its one-year Zoom stock forecast stands at $ Apr 10, · Their forecasts range from $ to $ On average, they predict Zoom Video Communications’ stock price to reach $ in the next year. This suggests a possible upside of % from the stock’s current price. View analysts’ price targets for Zoom Video Communications or view top-rated stocks among Wall Street analysts/5. Jun 17, · It is relevant to note Zoom’s stock price reaction post-1Q FY (YE January 31, ) results announcement, which was released on June 1, after trading hours. Initially, ZM’s share price.