What Is Zoom’s Long-Term Growth Trajectory? | The Motley Fool
Zoom investors may need to normalize their expectations. With ample cash flow from operations, Zoom (ZM %) currently has the ability to. ZM stock owns an IBD Relative Strength Rating of only 15 out of a best-possible The Relative Strength rating shows how a stock’s price.
ZM – Zoom Video Communications Inc Stock Price Quote – NASDAQ | Morningstar
All rights reserved. Charles St, Baltimore, MD Then Zoom became a verb when lockdowns prompted businesses, people, and schools to rely on video calls to interact with one another. As Covid put Zoom in the spotlight, many investors began regarding Zoom as a pandemic stock. Such a view might imply the company will be less relevant once the pandemic is completely over.
However, remote work is not likely to disappear. Many businesses, especially large enterprises, plan on using video apps even as the pandemic fades out. Investors noted that the growth is slowing, mainly due to a decline in the number of small business and individual subscribers.
Over the course of the pandemic, Zoom has become one of the most popular video conferencing applications on the market. Despite the recent decline in price, Zoom still remains a growth story. Market research shows a significant change in the workplace, a trend that is likely to benefit Zoom further. Meanwhile, Zoom keeps enhancing its platform.
In July, the company announced two major app launches. Now users can embed third-party apps in meetings. Wall Street is noticing the potential of this unified communications platform as a service UCaaS offering.
Understandably, such growth implies a massive market opportunity for Zoom. However, Zoom is likely to take a significant share of this pie. Zoom stock has been a great growth story in the past two years. Individuals and small businesses may cut down their reliance on video conferencing software, but the corporate world will likely keep relying on the app.
From a valuation perspective, ZM stock looks increasingly cheap as well. Despite plunging share price, revenue and profit have continued to grow, pushing the price-earnings and price-sales ratios to all-time lows. As a result, the stock now trades around 52x forward earnings and 22x trailing sales. Interested buy-and-hold investors could consider buying the dip in ZM shares.
On the date of publication, Tezcan Gecgil did not have either directly or indirectly any positions in the securities mentioned in this article. Tezcan Gecgil, Ph. In addition to formal higher education in the field, she has also completed all three levels of the Chartered Market Technician CMT examination.
Her passion is for options trading based on technical analysis of fundamentally strong companies. She especially enjoys setting up weekly covered calls for income generation. Stocks to Buy. Market Insight, Financial Articles. Today’s Market.
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Is zoom a good long term investment.This Company Is a Cash Machine, and It’s a Long-Term, Stable Tech Stock
Growth When assuming, that the services Zoom is offering are here to stay, we still must determine if – and how much – Zoom can grow its business in the years to come. Zoom Analyst Day Presentation. Sign in to view your mail. Stock splits typically have led to oversized returns, says Bank of America. When assuming, that the services Zoom is offering are here to stay, we still must determine if – and how much – Zoom can grow its business in the years to come. Market Update. Current Price.