The additional silver lining is that Zoom does have other products to offer customers. If it weren’t for the availability of these other products, Zoom’s revenue might have fallen by now. The IBD Composite Rating, or the Investor’s Business Daily Composite Rating, is a proprietary rating system developed by Investor’s Business Daily (IBD) to assess a stock’s overall strength and quality. It combines several key fundamental and technical factors to give investors a quick snapshot of a stock’s potential.
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Furthermore, advanced packages come with additional features, including dedicated support, recording storage, and customization options. The advanced features made the software more attractive to users, especially in 2020, and ultimately grew its revenue. We will help to challenge your ideas, skills, and perceptions of the stock market. Every day people join our community and we welcome them with open arms.
Insiders that own company stock include Santiago Subotovsky, Kelly Steckelberg, Velchamy Sankarlingam, Shane Crehan, Janet Napolitano, Aparna Bawa, Jonathan Chadwick and Eric S Yuan. Zoom Video Communications scored higher than 76% of companies evaluated by MarketBeat, and ranked 210th out of 657 stocks in the computer and technology sector. Scores are calculated by averaging available category scores, with extra weight given to analysis and valuation. Select to analyze similar companies using key performance metrics; select up to 4 stocks. Research and a sense of your overall portfolio can help you decide how much money to invest in Zoom. So, too, might your opinion on how long people will continue to work and dial in from home.
Zoom Video Communications went public on April 18, 2019, with an (IPO) price of $36 per share. Since going public, the stock has experienced significant growth. For example, on October 19, 2020, Zoom reached its all-time high closing price of $568.34. Zoom has witnessed a deceleration of growth since the pandemic, but it is still very profitable and steadily growing revenue. Investors might consider adding the stock to a well-diversified basket of assets.
Zoom’s earnings for the quarter ending January 31 were 1.42 per share on an a from a year earlier. Zoom is looking to improve its financials and address its previous growth struggles. The share buyback could help drive shareholder value by fxtm forex broker review boosting earnings per share. Zoom Video Communications has announced a share buyback program for several reasons. The share buyback announcement, set to repurchase up to $1.5 billion shares, reflects confidence in the company’s value and financial strength.
The best growth stocks have a Composite Rating of 90 or better. Additionally, revenue in its fiscal 2024 third quarter was only up 3.1% year over year. Furthermore, Zoom’s average contract length with companies is about three years. Many were up for renewal during the company’s fiscal year 2024, which ended in January. Since many of their customers reduced their employee base, they didn’t renew their contracts.
Copyright © 2025 FactSet Research Systems Inc.© 2025 TradingView, Inc. We put all of the tools available to traders to the test and give you first-hand experience in stock trading you won’t find elsewhere. On our site, you will find thousands of dollars worth of free online trading courses, tutorials, and reviews. People come here to learn, hang out, practice, trade stocks, and more. Our trade rooms are a great place to get live group mentoring and training. Zoom’s growth has stalled because its existing customers have downsized, and consequently, it doesn’t need as much from the company.
NerdWallet, Inc. is an independent publisher and comparison service, not an investment advisor. Its articles, interactive tools and other content are provided to you for free, as self-help tools and for informational purposes only. NerdWallet does not and cannot guarantee the accuracy or applicability of any information in regard to your individual circumstances. Examples are hypothetical, and we encourage you to seek personalized advice from qualified professionals regarding specific investment issues.
How to buy Zoom stock
Zoom makes money by selling its platform subscriptions to everyone from single users to companies with hundreds of esp32 vs esp8266 thousands of employees. Unlike some other firms, Zoom went into its IPO as a profitable company. Fintech is not just a trend; it’s a paradigm shift reshaping the financial landscape. By understanding its key components, benefits, risks, and future trends, you can navigate this dynamic ecosystem with confidence and capitalize on the opportunities it presents. The revolution has arrived, and it’s time to embrace the future of finance.
It has become widely used for remote work, online education, and virtual social interactions. They had their biggest year in 2020, with all the work-from-home happening. 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.
- Zoom has gained significant popularity, especially during the COVID-19 pandemic.
- It ended the second quarter of its fiscal 2025 with 3,933 customers contributing more than $100,000 in trailing-12-month revenue, a 7% year-over-year increase, and approximately 191,600 enterprise customers.
- The Bullish Bears team focuses on keeping things as simple as possible in our online trading courses and chat rooms.
- Diversifying your investment portfolio is a key aspect of benefiting from numerous sources of growth through the years.
- Zoom makes money by selling its platform subscriptions to everyone from single users to companies with hundreds of thousands of employees.
Once you’re ready to buy shares of Zoom stock, pull up your brokerage account and search for the ticker ZM. Most brokerages will let you input the exact number of shares you want into the order box or the dollar amount you want to buy. You can usually buy fractional shares, too, if you don’t want to invest in whole shares of the stock. You should consider looking for brokers that offer perks like no or low minimum balance fees, fractional share investing, no or low commissions, plus minimal (if any) transaction fees. Most firms also give you various account options that you can open, ranging from a standard taxable brokerage account to tax-advantaged retirement accounts.
- We don’t care what your motivation is to get training in the stock market.
- The Composite Rating considers various factors, including earnings per share (EPS) growth, sales growth, profit margins, return on equity (ROE), and relative price strength.
- Research and a sense of your overall portfolio can help you decide how much money to invest in Zoom.
- The company’s revenues rose 88.3% in fiscal year 2020, followed by a 325% rise the following year.
- So, too, might your opinion on how long people will continue to work and dial in from home.
Financial Highlights
Zoom is a cloud-based conferencing software that enables people to interact virtually when a physical meeting is undesirable or impossible. Indeed, it is more than a video software because users can record meetings, create annotations, and even share each other’s screenshots. This flexibility and convenience made it the software of choice for most companies and individuals who were forced to work remotely at the height of the COVID-19 emergency. Zoom Video Communications Inc. (ZM) offers a video-first communications platform used by millions of people worldwide for both business and personal use.
For valuing profitable companies with growth potential
On February 1, Zoom Video said it would cut most of its workforce, about 150 jobs. This comes as no surprise, as layoffs in the U.S. tech sector reached all-time highs in January. Essentially, fewer people in seats means fewer people using Zoom for meetings. Zoom has gained significant popularity, especially during the COVID-19 pandemic.
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It also hosted its first annual user conference (Zoomtopia) in 2017 and launched its telehealth platform. The first version of Zoom Meetings allowed up to 25 participants per conference. By the end of Zoom’s first month in business, it already had close to half a million users; a few months later, that figure was up to 1 million users. By September 2013, Zoom raised a Series B round of funding to the tune of $6.5 million and had 3 million daily participants using its meeting software.
To succeed in Zoom trading, it is prudent to follow its performance and the latest analysis by experts closely. Because of the anticipated high volatility, make sure to manage your risk well by only trading with a small portion of your equity in every trade and using stop-loss orders correctly. By 2019, about half of Fortune 500 companies reportedly used Zoom. This is why it was easy for it to win more brands and individual users when COVID-19 broke out and forced more people to work remotely. After a steady rise from April 2020, Zoom stock retracted by about 8% in October, and analysts are predicting that the price might go gold trading online down further.