Is Zoom Video Stock a Good Investment?
Zoom Video Investment Advice | ZM |
- Examine Zoom Video's financial health by looking at its balance sheet, income statement, and cash flow statement. Analyze key financial ratios, such as Price-to-Earnings (P/E), Price-to-Sales (P/S), and Price-to-Book (P/B), to determine whether the stock is fairly valued or over/undervalued.
- Research Zoom Video's leadership team and their track record. Good management can help Zoom Video navigate difficult times and make strategic decisions that benefit shareholders and increases its net worth.
- Consider the overall health of the Application Software space and any emerging trends that could impact Zoom Video's business and its evolving consumer preferences.
- Compare Zoom Video's performance and market position to its competitors. Analyze how Zoom Video is positioned in terms of product offerings, innovation, and market share.
- Check if Zoom Video pays a dividend and its dividend yield and payout ratio.
- Review what financial analysts are saying about Zoom Video's stock and their price targets. However, remember that analysts' opinions can vary, and their predictions may not always be accurate.
It's important to note that investing in Zoom Video Communications stock, carries risks, and you should carefully consider your investment goals and risk tolerance before making any investment decisions. Also, remember that it's important for investors to have a long-term perspective and a well-diversified portfolio to manage the impact of stock market volatility on their investments. Below is a detailed guide on how to decide if Zoom Video Communications is a good investment.
Sell | Buy |
Strong Hold
Market Performance | Good | Details | |
Volatility | Very steady | Details | |
Hype Condition | Under hyped | Details | |
Current Valuation | Overvalued | Details | |
Odds Of Distress | Low | Details | |
Economic Sensitivity | Follows the market closely | Details | |
Investor Sentiment | Alarmed | Details | |
Analyst Consensus | Buy | Details | |
Financial Strenth (F Score) | Healthy | Details | |
Financial Leverage | Not Rated | Details | |
Reporting Quality (M-Score) | Possible Manipulator | Details |
Examine Zoom Video Stock
Researching Zoom Video's stock involves analyzing various aspects of the company and its industry to make an informed investment decision. The key areas to focus on are fundamentals, business model and competitive advantage. It is also important to analyze trends in revenue, net income, and cash flow, as well as key financial ratios, such as price-to-earnings (P/E), price-to-sales (P/S), and debt-to-equity (D/E). About 69.0% of the company outstanding shares are owned by institutional investors. The book value of Zoom Video was at this time reported as 26.07. The company had not issued any dividends in recent years.
To determine if Zoom Video is a good investment, evaluating the company's potential for future growth is also very important. This may include expanding into new markets, launching new products or services, or improving operational efficiency. Companies with strong growth prospects can be more attractive investments. This aspect of the research should be conducted in the context of the overall market and industry in which the company operates and should include an analysis of growth potential, competitive landscape, and any regulatory or economic factors that could impact the business. Some of the essential points regarding Zoom Video's research are outlined below:
| About 69.0% of the company outstanding shares are owned by institutional investors | |
| Latest headline from finance.yahoo.com: Zoom Video Continues Streak of Exceeding EPS Expectations |
Zoom Video Quarterly Accounts Payable |
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Zoom Video uses earnings reports to provide investors with an update of all three financial statements, including the income statement, the balance sheet, and the cash flow statement. Therefore, it is also crucial when considering investing in Zoom Video Communications. Every quarterly earnings report provides investors with an overview of sales, expenses, and net income for the most recent period. It also may provide a comparison to Zoom Video's previous reporting period. The quarterly earnings reports are usually disseminated to the public via Form 10-Q, which is a legal document filed with the Securities and Exchange Commission every quarter.
| 26th of February 2024 Upcoming Quarterly Report | View | |
| 27th of May 2024 Next Financial Report | View | |
| 31st of January 2024 Next Fiscal Quarter End | View | |
| 26th of February 2024 Next Fiscal Year End | View | |
| 31st of October 2023 Last Quarter Report | View | |
| 31st of January 2023 Last Financial Announcement | View |
Earnings surprises can significantly impact Zoom Video's stock price both in the short term and over time. Negative earnings surprises usually result in a price decline. However, it has been seen that positive earnings surprises lead to an immediate rise in a stock's price and a gradual increase over time. This is why we often hear news about some companies beating earning projections. Financial analysts spend a large amount of time predicting earnings per share (EPS) along with other important future indicators. Many analysts use forecasting models, management guidance, and additional fundamental information to derive an EPS estimate. Below are the table of largest EPS Surprises Zoom Video's investors have experienced.
| Reported | Fiscal Date | Estimated EPS | Reported EPS | Surprise | |||
|---|---|---|---|---|---|---|---|
2019-06-06 | 2019-04-30 | 0.01 | 0.03 | 0.02 | 200 | ||
2019-12-05 | 2019-10-31 | 0.03 | 0.09 | 0.06 | 200 | ||
2019-09-05 | 2019-07-31 | 0.01 | 0.08 | 0.07 | 700 | ||
2020-03-04 | 2020-01-31 | 0.07 | 0.15 | 0.08 | 114 | ||
2022-08-22 | 2022-07-31 | 0.94 | 1.05 | 0.11 | 11 | ||
2020-06-02 | 2020-04-30 | 0.09 | 0.2 | 0.11 | 122 | ||
2024-05-20 | 2024-04-30 | 1.2 | 1.35 | 0.15 | 12 | ||
2022-05-23 | 2022-04-30 | 0.87 | 1.03 | 0.16 | 18 |
Know Zoom Video's Top Institutional Investors
Have you ever been surprised when a price of an equity instrument such as Zoom Video is soaring high without any particular reason? This is usually happening because many institutional investors are aggressively trading Zoom Video Communications backward and forwards among themselves. Zoom Video's institutional investor refers to the entity that pools money to purchase Zoom Video's securities or originate loans. Institutional investors include commercial and private banks, credit unions, insurance companies, pension funds, hedge funds, endowments, and mutual funds. Operating companies that invest excess capital in these types of assets may also be included in the term and may influence corporate governance by exercising voting rights in their investments.
| Shares | Renaissance Technologies Corp | 2024-09-30 | 3.9 M | Nikko Asset Management Americas Inc | 2024-06-30 | 3.1 M | Fidelity International Ltd | 2024-06-30 | 2.9 M | Legal & General Group Plc | 2024-06-30 | 2 M | Kbc Group Nv | 2024-06-30 | 1.8 M | First Trust Advisors L.p. | 2024-06-30 | 1.7 M | Northern Trust Corp | 2024-09-30 | 1.7 M | Two Sigma Investments Llc | 2024-09-30 | 1.6 M | Caisse De Depot Et Placement Du Quebec | 2024-06-30 | 1.5 M | Vanguard Group Inc | 2024-09-30 | 24.3 M | Blackrock Inc | 2024-06-30 | 15.5 M |
Zoom Video's market capitalization trends
The company currently falls under 'Large-Cap' category with a market capitalization of 25.34 B.Market Cap |
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Zoom Video's profitablity analysis
| Last Reported | Projected for Next Year | ||
| Return On Tangible Assets | 0.07 | 0.04 | |
| Return On Capital Employed | 0.06 | 0.04 | |
| Return On Assets | 0.06 | 0.04 | |
| Return On Equity | 0.08 | 0.07 |
Determining Zoom Video's profitability involves analyzing its financial statements and using various financial metrics to determine if Zoom Video is a good buy. For example, gross profit margin measures Zoom Video's profitability after accounting for the cost of goods sold, while net profit margin measures profitability after accounting for all expenses. Other important metrics include return on assets, return on equity, and free cash flow. By reviewing multiple sources and metrics, you can gain a complete picture of Zoom Video's profitability and make more informed investment decisions.
Zoom Video's Earnings Breakdown by Geography
Evaluate Zoom Video's management efficiency
Zoom Video Communications has Return on Asset (ROA) of 0.0478 % which means that for every $100 of assets, it generated a profit of $0.0478. This is way below average. Likewise, it shows a return on total equity (ROE) of 0.1127 %, which means that it produced $0.1127 on every 100 dollars invested by current stockholders. Zoom Video's management efficiency ratios could be used to measure how well Zoom Video manages its routine affairs as well as how well it operates its assets and liabilities. As of the 30th of November 2024, Return On Tangible Assets is likely to drop to 0.04. In addition to that, Return On Capital Employed is likely to drop to 0.04. At this time, Zoom Video's Intangibles To Total Assets are very stable compared to the past year. As of the 30th of November 2024, Asset Turnover is likely to grow to 0.63, while Intangible Assets are likely to drop about 36.5 M.| Last Reported | Projected for Next Year | ||
| Book Value Per Share | 26.66 | 28.00 | |
| Tangible Book Value Per Share | 25.40 | 26.67 | |
| Enterprise Value Over EBITDA | 28.50 | 27.07 | |
| Price Book Value Ratio | 2.42 | 2.54 | |
| Enterprise Value Multiple | 28.50 | 27.07 | |
| Price Fair Value | 2.42 | 2.54 | |
| Enterprise Value | 20.6 B | 19.6 B |
Zoom Video Communications has shown resilience through effective management strategies. Our analysis examines how these strategies influence financial outcomes and investor returns which helps in understanding the stock's long-term potential.
Beta (0.06) |
Basic technical analysis of Zoom Stock
As of the 30th of November, Zoom Video maintains the Mean Deviation of 1.5, downside deviation of 2.12, and Market Risk Adjusted Performance of 0.2863. Relative to fundamental indicators, the technical analysis model lets you check existing technical drivers of Zoom Video Communications, as well as the relationship between them. Please check out Zoom Video Communications information ratio and downside variance to decide if Zoom Video Communications is priced fairly, providing market reflects its latest price of 82.69 per share. Given that Zoom Video Communications has jensen alpha of 0.1334, we strongly advise you to confirm Zoom Video Communications's prevalent market performance to make sure the company can sustain itself at a future point.Zoom Video's insider trading activities
Some recent studies suggest that insider trading raises the cost of capital for securities issuers and decreases overall economic growth. Trading by specific Zoom Video insiders, such as employees or executives, is commonly permitted as long as it does not rely on Zoom Video's material information that is not in the public domain. Local jurisdictions usually require such trading to be reported in order to monitor insider transactions. In many U.S. states, trading conducted by corporate officers, key employees, directors, or significant shareholders must be reported to the regulator or publicly disclosed, usually within a few business days of the trade. In these cases Zoom Video insiders are required to file a Form 4 with the U.S. Securities and Exchange Commission (SEC) when buying or selling shares of their own companies.
Zoom Video's Outstanding Corporate Bonds
Zoom Video issues bonds to finance its operations. Corporate bonds make up one of the largest components of the U.S. bond market, which is considered the world's largest securities market. Zoom Video Communications uses the proceeds from bond sales for a wide variety of purposes, including financing ongoing mergers and acquisitions, buying new equipment, investing in research and development, buying back their own stock, paying dividends to shareholders, and even refinancing existing debt. Most Zoom bonds can be classified according to their maturity, which is the date when Zoom Video Communications has to pay back the principal to investors. Maturities can be short-term, medium-term, or long-term (more than ten years). Longer-term bonds usually offer higher interest rates but may entail additional risks.
| US98981BAA08 Corp BondUS98981BAA08 | View | |
| MPLX LP 52 Corp BondUS55336VAL45 | View | |
| US98980BAA17 Corp BondUS98980BAA17 | View |
Understand Zoom Video's technical and predictive indicators
Using predictive indicators to make investment decisions involves analyzing Zoom Video's various financial and market-based factors to help forecast future trends and identify investment opportunities. Select the indicators that are most relevant to your investment strategy. Each indicator has its own strengths and weaknesses, so it's essential to combine multiple indicators to get a more comprehensive view of the market and reduce the risk of making poor decisions based on limited data.
| Risk Adjusted Performance | 0.104 | |||
| Market Risk Adjusted Performance | 0.2863 | |||
| Mean Deviation | 1.5 | |||
| Semi Deviation | 1.84 | |||
| Downside Deviation | 2.12 | |||
| Coefficient Of Variation | 781.97 | |||
| Standard Deviation | 2.02 | |||
| Variance | 4.07 | |||
| Information Ratio | 0.0596 | |||
| Jensen Alpha | 0.1334 | |||
| Total Risk Alpha | (0.09) | |||
| Sortino Ratio | 0.0569 | |||
| Treynor Ratio | 0.2763 | |||
| Maximum Drawdown | 12.08 | |||
| Value At Risk | (3.04) | |||
| Potential Upside | 2.97 | |||
| Downside Variance | 4.48 | |||
| Semi Variance | 3.37 | |||
| Expected Short fall | (1.55) | |||
| Skewness | (0.23) | |||
| Kurtosis | 1.49 |
| Risk Adjusted Performance | 0.104 | |||
| Market Risk Adjusted Performance | 0.2863 | |||
| Mean Deviation | 1.5 | |||
| Semi Deviation | 1.84 | |||
| Downside Deviation | 2.12 | |||
| Coefficient Of Variation | 781.97 | |||
| Standard Deviation | 2.02 | |||
| Variance | 4.07 | |||
| Information Ratio | 0.0596 | |||
| Jensen Alpha | 0.1334 | |||
| Total Risk Alpha | (0.09) | |||
| Sortino Ratio | 0.0569 | |||
| Treynor Ratio | 0.2763 | |||
| Maximum Drawdown | 12.08 | |||
| Value At Risk | (3.04) | |||
| Potential Upside | 2.97 | |||
| Downside Variance | 4.48 | |||
| Semi Variance | 3.37 | |||
| Expected Short fall | (1.55) | |||
| Skewness | (0.23) | |||
| Kurtosis | 1.49 |
Consider Zoom Video's intraday indicators
Zoom Video intraday indicators are useful technical analysis tools used by many experienced traders. Just like the conventional technical analysis, daily indicators help intraday investors to analyze the price movement with the timing of Zoom Video stock daily movement. By combining multiple daily indicators into a single trading strategy, you can limit your risk while still earning strong returns on your managed positions.
| Accumulation Distribution | 124234.0 | |||
| Daily Balance Of Power | (0.81) | |||
| Rate Of Daily Change | 0.97 | |||
| Day Median Price | 84.0 | |||
| Day Typical Price | 83.56 | |||
| Price Action Indicator | (2.64) | |||
| Period Momentum Indicator | (2.67) | |||
| Relative Strength Index | 87.89 |
Zoom Video Corporate Filings
10Q | 26th of November 2024 Quarterly performance report mandated by Securities and Exchange Commission (SEC), to be filed by publicly traded corporations | ViewVerify |
8K | 25th of November 2024 Report filed with the SEC to announce major events that shareholders should know about | ViewVerify |
| 12th of November 2024 Other Reports | ViewVerify | |
F4 | 7th of November 2024 The report filed by a party regarding the acquisition or disposition of a company's common stock, as well as derivative securities such as options, warrants, and convertible securities | ViewVerify |
Zoom Stock media impact
Far too much social signal, news, headlines, and media speculation about Zoom Video that are available to investors today. That information is available publicly through Zoom media outlets and privately through word of mouth or via Zoom internal channels. However, regardless of the origin, that massive amount of Zoom data is challenging to quantify into actionable patterns, especially for investors that are not very sophisticated with ever-evolving tools and techniques used in the investment management field.
A primary focus of Zoom Video news analysis is to determine if its current price reflects all relevant headlines and social signals impacting the current market conditions. A news analyst typically looks at the history of Zoom Video relative headlines and hype rather than examining external drivers such as technical or fundamental data. It is believed that price action tends to repeat itself due to investors' collective, patterned thinking related to Zoom Video's headlines and news coverage data. This data is often completely overlooked or insufficiently analyzed for actionable insights to drive Zoom Video alpha.
Zoom Video Sentiment by Major News Outlets
Investor sentiment, mood or attitude towards Zoom Video can have a significant impact on its stock price or the market as a whole. This sentiment can be positive or negative, and various factors, such as economic indicators, news events, or market trends, can influence it. When investor sentiment is positive, investors are more likely to buy stocks, increasing demand and increasing the stock price. Positive investor sentiment can be driven by good news about the company or the broader market, such as solid earnings reports or positive economic data.
Note that negative investor sentiment can cause investors to sell stocks, leading to a decrease in demand and a drop in the stock price. Negative sentiment can be driven by factors such as poor earnings reports, negative news about the company or industry, or broader economic concerns. It's important to note that investor sentiment is just one of many factors that can affect stock prices. Other factors, such as company performance, industry trends, and global economic conditions, can also play a significant role in determining the value of a stock.
Zoom Video Communications Historical Investor Sentiment
Investor biases related to Zoom Video's public news can be used to forecast risks associated with an investment in Zoom. The trend in average sentiment can be used to explain how an investor holding Zoom can time the market purely based on public headlines and social activities around Zoom Video Communications. Please note that most equities that are difficult to arbitrage are affected by market sentiment the most.
Zoom Video's market sentiment shows the aggregated news analyzed to detect positive and negative mentions from the text and comments. The data is normalized to provide daily scores for Zoom Video and other traded tickers. The bigger the bubble, the more accurate the estimated score. Higher bars for a given day show more participation in the average Zoom Video news discussions. The higher the estimate score, the more favorable the investor's outlook on Zoom Video.
Zoom Video Corporate Management
| Michelle Chang | Chief Officer | Profile | |
| Xuedong Huang | Chief Officer | Profile | |
| Brendan Ittelson | Chief Officer | Profile | |
| Gary Sorrentino | Global Officer | Profile | |
| Gregory Tomb | President | Profile |
Already Invested in Zoom Video Communications?
The danger of trading Zoom Video Communications is mainly related to its market volatility and Company specific events. As an investor, you must understand the concept of risk-adjusted return before you start trading. The most common way to measure the risk of Zoom Video is by using the Sharpe ratio. The ratio expresses how much excess return you acquire for the extra volatility you endure for holding a more risker asset than Zoom Video. The Sharpe ratio is calculated by using standard deviation and excess return to determine reward per unit of risk. To understand how volatile Zoom Video Communications is, you must compare it to a benchmark. Traditionally, the risk-free rate of return is the rate of return on the shortest-dated U.S. Treasury, such as a 3-year bond.
Check out Your Current Watchlist to better understand how to build diversified portfolios, which includes a position in Zoom Video Communications. Also, note that the market value of any company could be closely tied with the direction of predictive economic indicators such as signals in population. You can also try the Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
Is Application Software space expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Zoom Video. If investors know Zoom will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Zoom Video listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth 0.173 | Earnings Share 3.01 | Revenue Per Share 14.962 | Quarterly Revenue Growth 0.021 | Return On Assets 0.0478 |
The market value of Zoom Video Communications is measured differently than its book value, which is the value of Zoom that is recorded on the company's balance sheet. Investors also form their own opinion of Zoom Video's value that differs from its market value or its book value, called intrinsic value, which is Zoom Video's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Zoom Video's market value can be influenced by many factors that don't directly affect Zoom Video's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
In summary, please note that there is a difference between Zoom Video's value and its price, as these two are different measures arrived at by various means. Investors typically determine if Zoom Video is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Zoom Video's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.