As Wood and others have stated, Zoom is much more than an online meeting platform. It is a comprehensive communications ecosystem that includes team chat platforms, online whiteboards, VoIP phone service, workspaces, email, and other services. And yet the business performed solidly throughout the past few years even as the stock fell. Understanding market sentiments and expectations within the industry is crucial for investors. Zoom Video Communications scored higher than 83% of companies evaluated by MarketBeat, and ranked 174th out of 650 stocks in the computer and technology sector.
The market awaits Zoom Video Comms’s announcement, with hopes high for news of surpassing estimates and providing upbeat guidance for the next quarter. As mentioned above, on Sept. 30, 2021, Five9 announced that the two parties had mutually agreed to abandon the deal. silver trading on forex The company said that the agreement had not received the 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. Zoom’s latest fiscal year (FY) was FY 2021, which ended Jan. 31, 2021. For that period, the company reported net income of $672.3 million on revenue of $2.7 billion.
- 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.
- So, it’s worth taking a look at the surprise history for gauging its influence on the upcoming number.
- However, the model’s predictive power is significant for positive ESP readings only.
- Still, the bear estimate calls for a $700-per-share or less stock price, amounting to more than a 10-fold gain from current levels if that price target holds.
- 66.54% of the stock is currently owned by hedge funds and other institutional investors.
- As a result, we can interpret positive estimate revisions as a good sign for the company’s business outlook.
Analyst rating
Ark Invest has backed estimates up by taking a significant position in the media stock. Zoom makes up almost 7% of its flagship fund, the Ark Innovation ETF, making the Cathie Wood investment its fourth-largest holding. Across all Ark Invest funds, Zoom makes up around 4.5% of the company’s holdings. Zoom even initiated new growth efforts, building out an artificial intelligence (AI)-driven communications ecosystem. pro trader strategies review 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.
Zoom Video Communications (ZM) Earnings Expected to Grow: Should You Buy?
Dimensional Fund Advisors LP now owns 1,365,705 shares of the company’s stock valued at $80,827,000 after purchasing an additional 264,217 shares in the last quarter. CA lifted its stake in Zoom Video Communications by 20.0% in the second quarter. CA now owns 1,280,525 shares of the company’s stock worth $75,794,000 after purchasing an additional 213,575 shares during the last quarter. 66.54% of the stock is currently owned by hedge funds and other institutional investors. At the center of everything we do is a strong commitment to independent research and sharing its profitable discoveries with investors. This dedication to giving investors a trading advantage led to the creation of our proven Zacks Rank stock-rating system.
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Without considering a stock’s valuation, no investment decision can be efficient. In predicting a stock’s future price performance, it’s crucial to determine whether its current price correctly reflects the intrinsic value of the underlying business and the company’s growth prospects. Before a company reveals its earnings, it is vital to take into account any changes in earnings projections. These revisions play a pivotal role in predicting the possible reactions of investors toward the stock. Multiple empirical studies have consistently shown a strong association between trends in earnings estimates and the short-term price movements of a stock. Elastic (ESTC), another stock in the Zacks Internet currency trading for dummies by mark galant brian dolan – Software industry, is expected to report earnings per share of $0.38 for the quarter ended October 2024.
Zoom Video Communications (ZM 4.88%) is a bit of a mystery as a growth stock. Prior to founding Zoom, Yuan was corporate vice president of engineering at Cisco, and was a founding engineer and vice president of engineering for web and videoconferencing platform Webex. The company is headquartered in San Jose, Calif., and has additional offices in more than 15 locations in the United States, Europe, Asia, and Australia. Sign up for MarketBeat All Access to gain access to MarketBeat’s full suite of research tools.
ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities. Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about. Zoom Video Communications’ top institutional shareholders include FMR LLC (4.04%), State Street Corp (1.98%), Pacer Advisors Inc. (1.78%) and Geode Capital Management LLC (1.49%). Insiders that own company stock include Santiago Subotovsky, Kelly Steckelberg, Velchamy Sankarlingam, Janet Napolitano, Aparna Bawa, Shane Crehan, Jonathan Chadwick, Ryan Azus and Eric S Yuan. So, this combination makes it difficult to conclusively predict that Zoom Video will beat the consensus EPS estimate.
Analysts estimate that Zoom Video Comms will report an earnings per share (EPS) of $1.31. © 2024 Market data provided is at least 10-minutes delayed and hosted by Barchart Solutions. Information is provided ‘as-is’ and solely for informational purposes, not for trading purposes or advice, and is delayed. To see all exchange delays and terms of use please see Barchart’s disclaimer. Almost everyone loves strong dividend-paying stocks, but high yields can signal danger. Discover 20 high-yield dividend stocks paying an unsustainably large percentage of their earnings.