Zoom Video Communications, Inc. provides unified communications platform in the Americas, the Asia Pacific, Europe, the Middle East, and Africa. It serves individuals; and education, entertainment/media, enterprise infrastructure, finance, government, healthcare, manufacturing, non-profit/not for profit and social impact, retail/consumer products, and software/Internet industries. The company was formerly known as Zoom Communications, Inc. and changed its name to Zoom Video Communications, Inc. in May 2012.
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- For the current quarter, Zoom Video is expected to post earnings of $1.31 per share, indicating a change of +1.6% from the year-ago quarter.
- Because of this, empirical studies indicate a strong correlation between trends in earnings estimate revisions and short-term stock price movements.
- Zoom Phone was called out on the most recent earnings call as having triple-digit year-over-year revenue growth, showing these new initiatives are starting to pay off.
- Ark Invest has backed estimates up by taking a significant position in the media stock.
Zoom Video is graded C on this front, indicating that it is trading at par with its peers. Click here to see the values of some of the valuation metrics that have driven this grade. Compared to the Zacks Consensus Estimate of $1.15 billion, the reported revenues represent a surprise of +1.22%.
In 2020, the United States charged a China-based Zoom executive with conspiring to disrupt videoconference commemorations of the 1989 Tiananmen Square democracy protests. Zoom is also the focus of several ongoing federal investigations related to its dealings with Beijing, according Zigzag indicator to the Journal. As mentioned above, on Sept. 30, 2021, Five9 announced that the two parties had mutually agreed to abandon the deal.
Zoom Video Communications (ZM) Earnings Expected to Grow: Should You Buy?
Continuing the two-year comparisons, that number is up from Q3 2020, when international revenue was only 20% of total revenue. If Zoom can continue to grow internationally, it opens up plenty of new revenue opportunities. Because of this, it is helpful to take a look at Zoom’s performance as compared to 2019. After all, year-over-year comparisons in 2021 are facing some awfully tough comparisons to 2020, when demand was at its peak. The chart below compares Zoom’s Q3 of 2022 (ending Oct. 31, 2021) to the corresponding quarter two years ago.
About Zoom Video Communications, Inc.
That’s because we believe the present value of its future stream of earnings is what determines the fair value for its stock. 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.
The Zacks Consensus Estimate remained unchanged over the last 30 days. Zoom even initiated new growth efforts, building out an artificial intelligence (AI)-driven communications ecosystem. Then there is the endorsement of Ark Investment Management’s CEO Cathie Wood, whose bold predictions regarding other tech stocks (like Tesla and Bitcoin) have come to pass. Wood and her team predicted a $1,500-per-share price target for Zoom by 2026, a 22-fold gain from current levels. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock’s expected earnings 5 best cryptocurrencies to invest in 2020 growth rate. ZM’s industry had an average PEG ratio of 2.41 as of yesterday’s close.
Double-digit revenue growth for the next five years surely isn’t bad, but it doesn’t compare to the company’s 160% compound annual growth rate over the past three years. With an impressive externally audited track record, our proprietary stock rating tool — the Zacks Rank — is a more conclusive indicator of a stock’s near-term price performance, as it effectively harnesses the power of earnings estimate revisions. The size of the recent change in the consensus estimate, along with three other factors related to earnings estimates, has resulted in a Zacks Rank #2 (Buy) for Zoom Video. 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.
Please bear with us as we address this and restore your personalized lists. Ai16z is attempting to position itself as a prominent entity in the AI wave. Zoom ended the last quarter with $5.4 billion in cash, cash equivalents, and marketable securities and only $97 million in debt.
Zoom Video Communications, Inc. Overview Software – Application / Technology
The company said that the agreement had not received the Fed cuts rates required number of votes from Five9 shareholders to approve the merger. Department of Justice-led panel, named Team Telecom, was investigating the proposed merger’s potential national security risks. Select to analyze similar companies using key performance metrics; select up to 4 stocks. Instead it’s the creation of a different, unnamed “partner” that he said is working with the ai16z team.
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. 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. Zoom shares have lost over 60% of their value in the past six months as part of a broader tech sell-off in response to rising interest rates and inflation.