Zoom Video Communications Share Price Forecast December 2021 – Time to Buy ZM?
Please note that we are not authorised to provide any investment advice. The content on this page is for information purposes only.
Shares of American communications technology company (NASDAQ: ZM) are in the red today, closing at $188.27 as of December 9th (19:59 EST). ZM shares fell by 23% in November which has turned the company’s pandemic driven red hot trajectory sour this year. The shares have lost more than half of their value over the last 52 weeks.
Zoom Video Communications – Technical Analysis
The financial statement from Zoom Video Communications indicates that the market cap is $56.134 billion with total assets worth $6.979 billion. Revenue for 2020 was at $2.65 billion with a profit margin of 25.33% compared to $622.66 million in 2019.
Moving averages such as Exponential Moving Average (10)(199.60), Simple Moving Average (10)(198.20), Exponential Moving Average (20)(216.17), Simple Moving Average (20)(222.04) and Exponential Moving Average (30)(228.22) are indicating a sell action. Oscillators such as Relative Strength Index (14)(28.39), Stochastic %K (14, 3, 3)(17.13), Commodity Channel Index (20)(−84.16), Average Directional Index (14)(28.76) and Awesome Oscillator(−56.98) are neutral.
68% of all retail investor accounts lose money when trading CFDs with this provider.
Recent Developments
Zoom Video Communications flagship product is Zoom Meetings, an app that makes it possible for people to work and engage remotely. But also provides voice calling, videoconferencing, messaging, and content sharing with an aim to displace legacy communications infrastructure. Its Zoom Developer Platform is also successful, as it provides third-party developers to build integrations and applications which are then made available through the Zoom App Marketplace. This adds Zoom functionality to popular software like Salesforce, Microsoft Teams and HubSpot.
Zoom Video Communications enjoyed a profitable 2020 when it climbed 396% due to the company’s supercharged financial performance during the height of the pandemic. Things have changed since then, with the shares now 66% below their all-time high. The main reason behind Zoom’s nosedive is perception as the majority of the investors still view Zoom as a “COVID stock,” failing to see the company’s relevance beyond the pandemic.
After pharmaceutical giant, Pfizer presented strong results from trials of an anti-coronavirus pill many stocks rose sharply as investors saw a quicker end to the global health crisis. The same phenomenon also decreased Zoom’s value as the need for remote video meetings fades out. On November 23rd the shares took another hit due to a solid earnings report with hints of worse news to come. Sales for the third quarter increased by 35% year over year, reaching $1.05 billion.
Should You Buy ZM Shares?
Zoom is undoubtedly the frontrunner in both the meetings solutions market and the broader unified communications as a service (UCaaS) industry which highlights its successful expansion and diversification beyond videoconferencing. This means that the management’s strategy is working and investors shouldn’t fear Zoom becoming less relevant in a post-pandemic world.
Zoom’s solid financial performance also back’s investors’ positive sentiment and the company has delivered strong financial results in fiscal 2022 eventhough growth is slowing. It experienced triple-digit sales growth in the most recent quarter. Customer count rose 18% to reach 512100, 2,507 of whom have spent at least $100,000 during the past 12 months. This is up 94% from the previous year, which rounds up this set of positive metrics.
Finally, investors shouldn’t overlook the impact of Zoom’s founder-led management team. Data from Glassdoor.com suggests that 88% of employees would recommend Zoom to a friend, and about 95% approve of the current CEO’s leadership and strategy. This has invariably transferred to better performance. Shareholders who have entered before the pandemic have seen their investment grow threefold. Considering that there is more room for growth, you can buy ZM shares before the share prices go up again.
Buy ZM Stock at eToro from just $50 Now!
