Zoom Share Price Forecast September 2021 – Time To Buy Zoom Stock?
Please note that we are not authorised to provide any investment advice. The content on this page is for information purposes only.
Shares of the renowned American communications technology service Zoom (NASDAQ: ZM) are in the green today, after closing at $299.96 on September 7th (19:59 UTC-4). Zoom announced its fiscal 2022 second-quarter profits last month, which reflected the company’s total sales increase by 54% year over year to $1 billion, marking a new high. The company now anticipates overall sales to reach $1.015 billion to $1.020 billion in the third quarter, up 31% year over year.
Zoom Share Price – Technical Analysis
According to the financial statement from Zoom, the market cap of the communications technology company is at $89.126 billion with total assets worth $6.509 billion. Revenue for 2020 was at $2.65 billion whereas in 2019 it was at $622.66 million.
Moving averages for Zoom such as Exponential Moving Average (10)(313.77), Simple Moving Average (10)(318.06), Exponential Moving Average (20)(329.41), and Simple Moving Average (20)(333.76) are pointing towards selling. Oscillators such as Relative Strength Index (14) (31.64), Average Directional Index (14)(18.58), Awesome Oscillator(−56.84), and Stochastic RSI Fast (3, 3, 14, 14)(25.98) are, on the other hand, neutral.
67% of all retail investor accounts lose money when trading CFDs with this provider.
Zoom Share Price: Recent Developments
Due to the pandemic, Zoom Video Communications Inc. became one of the widespread businesses in early 2020. The company’s turnover for fiscal 2021 that ended January 31, increased by 326 per cent year over year; and the share now trades at more than 300 per cent higher than it did in January 2020. Zoom published financial data for the Q2 of fiscal 2022 on August 30 and ever since, the attention has shifted to the company’s slowing growth, proving that Zoom was only a pandemic investment for many. However, a deeper examination of a $265 million line item in Zoom’s billion-dollar top line clearly debunks this commonly held assumption.
Zoom made $1 billion in sales in the second quarter, up 54% from the previous quarter, which followed a 355 per cent year-over-year gain in the Q2 of the previous year. This implies the company’s top line was $358 million more than it had been a year ago. According to management, newer consumers accounted for 74 per cent of the additional income.
The shares of Zoom plunged after the announcement of its second-quarter earnings, and it is presently about 50% below its all-time high. When it comes to producing potential shareholder value, speculators are cutting this business off. However, in my opinion, it is still premature to say this as Zoom continues to acquire new consumers after the pandemic.
Should You Buy Zoom Shares?
Existing users may invest more money with Zoom in a variety of ways including the Zoom Phones lever, which is a device for modernising a company’s communication network. It’s been roughly a year since the service launched, and it’s already surpassed two million seats, an increase of around 500,000 from the second quarter. With the recent debut of Zoom Applications and Zoom Events, the company aims to integrate third-party apps into its sessions, giving consumers a more compelling and interactive engagement.
This isn’t even taking into account Zoom’s upcoming acquisition of Five9, which would significantly expand the company’s total addressable market or TAM. Zoom’s total addressable market has increased by 39% after purchasing Five9’s customer contact centre business. This appears to be the case, given that it currently has a balance sheet of over $5 billion and generates millions in quarterly free cash flow. Zoom, in acquiring new subscribers while existing consumers are spending more – which in my view – is a potent combination that may aid in Zoom share price long-term.
Buy ZM Stock at eToro from just $50 Now!
