Zoom (ZM) stock forecast: Bargain opportunity or slippery slope?.

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Shares of Zoom Video Communications soared more than 72 percent in the company\’s trading debut last week, capping a roughly 1, percent. There are currently 14 hold ratings and 14 buy ratings for the stock. The consensus among Wall Street analysts is that investors should \”buy\” Zoom Video. After modest model adjustments, we maintain our fair value estimate of $ per share and see shares as attractive. We are relieved to see overall stabilization.
 
 

– Is Zoom Stock a Good Buy? Zoom Stock Guide | CMC Markets

 
May 28,  · Zoom earnings for the first quarter of fiscal were $ a share on an adjusted basis, down 22% from a year earlier. Revenue rose 12% to $ billion for Zoom. Jun 01,  · So is Zoom a buy now? When Zoom was growing revenue in the triple digits during and , the market had the stock priced as if that growth would never slow. While that was exciting if you. Mar 21,  · Zoom Video Communications, Inc. (NASDAQ:ZM) is not the most popular stock in this group but hedge fund interest is still above average. Our overall hedge fund sentiment score for ZM is Author: Debasis Saha.

Is zoom shares a buy – none:. Zoom stock analysis – is Zoom stock a good buy?

Founded in by brothers Tom and David Gardner, The Motley Fool helps millions of people attain financial freedom through our website, podcasts, books, newspaper column, radio show, and premium investing services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth is zoom shares a buy – none:, investing resourcesand more.

Learn More. Zoom Video Communications \’ ZM That sell-off continued after its third-quarter report on Nov. At first glance, Zoom\’s headline numbers looked solid. However, Zoom\’s growth continues to decelerate, and its guidance indicates that the slowdown will continue.

Let\’s take a closer look at Zoom\’s growth rates, outlook, and valuations to see if it\’s still a worthy investment. Zoom was already generating robust growth back in fiscalwhich ended in January of that year, before the pandemic hit. When the pandemic is zoom shares a buy – none: more people to attend classes and work remotely, its growth accelerated to breakneck levels in fiscal However, those tailwinds waned throughout fiscal as vaccination rates rose and more people physically returned to classrooms and offices:.

Both of those forecasts surpassed analysts\’ expectations and indicated the company could still generate impressive double-digit growth on top of its triple-digit growth last year. Those estimates will likely be raised after its latest report, but they still imply the company will face increasingly difficult year-over-year comparisons as the pandemic ends.

Zoom also faces tougher competition in that slowing market. Last quarter, Microsoft said organizations had more thanTeams users, and more than 3, organizations had over 10, Teams users.

But Microsoft isn\’t killing Zoom yet. However, Zoom is still aware that is zoom shares a buy – none: needs to expand its ecosystem beyond video calls to stay competitive.

The deal was called off in September, but Zoom is still working closely with Five9 to expand its cloud-communications capabilities. Zoom also recently started testing out post-video ads for its free users. Those ads might enable Zoom to monetize the tens is zoom shares a buy – none: millions of free, loss-leading users that it gained throughout the pandemic and stabilize its revenue growth, even as it gains fewer new users.

However, Zoom\’s stock still isn\’t cheap at 52 times forward earnings and 15 times next year\’s sales. Those valuations would be reasonable if Zoom\’s growth rates were more predictable, but they\’re simply too hot for a company in the midst of an ongoing slowdown. Salesforce\’s stock trades at 66 times forward earnings and just nine times next year\’s sales. I own some shares of Zoom, but I don\’t think it\’s the right time to double down on this polarizing stock yet.

Zoom has an attractive brand and a sticky platform, but it\’s unclear if it can continue generating double-digit sales growth as the pandemic ends and Microsoft aggressively expands Teams. Instead, I\’d monitor Zoom\’s growth over the next few quarters to see if its year-over-year growth stabilizes before buying any more shares.

Cost basis and return based on previous market day close. Calculated by average return of all stock recommendations since inception of the Stock Advisor service in February of Discounted offers are only available to new members. Calculated by Time-Weighted Return since Volatility how to send zoom link via google – none: based on trailing-three-year calculations of the standard deviation of service investment returns.

Invest better with The Motley Fool. Get stock recommendations, portfolio guidance, and more from The Motley Fool\’s premium services. Premium Services. Stock Advisor. View Our Services. Our Purpose:. Latest Stock Picks. Key Points. Today\’s Change. Current Price. The pandemic-era darling continues to lose its momentum. Image source: Zoom. Zoom Video Communications. Motley Fool Returns Market-beating stocks from our award-winning service.

Stock Advisor Returns. Join Stock Is zoom shares a buy – none:. Our Most Popular Articles. Get Started Now. View Premium Services.