Is zoom stock a good buy

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The company’s product earnings and diversity make it an excellent stock to buy. To buy zoom stock  you must look deep into the zoom products and their earnings. Remote working and collaboration are made simple with Zoom Video Communications’ cloud-native unified communications platform. Mainly it incorporates video, audio, phone, screen sharing, and chat functionality. The business is undoubtedly benefiting from the surge of work-from-home and online learning that followed the coronavirus pandemic, which caused an increasing number of people to stay at home.

Zoom Video Communications (ZM) Products

Zoom Phone is a cloud phone system that includes intelligent call routing, automatic attendants, voicemails, dialing personas, call recording, and many other features.

Zoom Video Webinars is a conferencing platform that makes it simple for companies to host significant online events with audio, video, and screen sharing.

Current consumers may use an app store to install third-party apps like HubSpot, Slack, or Trello to improve the product’s functionality.

The flagship product is Zoom Video. Zoom Meetings offers high-definition video, audio, and conferencing. Zoom’s software and hardware are available all over the world. Uber, Rakuten, TransferWise, and a long list of other well-known companies are among the company’s clients.

Hedge funds Opinion on Zoom Video Communications, Inc. (NASDAQ: ZM)?

At the end of September, 56 of Insider Monkey’s hedge funds had long positions in this stock, up 17 percent from the previous quarter. You can see the shift in hedge fund sentiment towards ZM over the last 21 quarters in the graph below. Let’s look at which hedge funds were among the most prominent stock investors and hedge funds were making significant moves.

Renaissance Technologies was the largest shareholder in Zoom Video Communications, Inc. (NASDAQ: ZM) at the end of September, with a stake worth $2467.1 million. Hillhouse Capital Management came in second with a stake worth $2356.2 million, trailing Renaissance Technologies.

Coatue Management, Citadel Investment Group, and Tiger Global Management LLC were also significant stock fans, with Coatue Management, Citadel Investment Group, and Tiger Global Management LLC among the most significant shareholders. 

Hillhouse Capital Management assigned the most weight to Zoom Video Communications, Inc. (ZM). Strategy Capital is also a significant fan of ZM, allocating 11.21 percent of its 13F equity portfolio to the stock.

Is Zoom Video Communications, Inc. stock A Buy?

We assume Zoom Video Communications, Inc. will continue to perform poorly in the coming days or weeks because it has many negative signals and is in a huge and dropping trend. As a result, we have a negative opinion of this stock.

Zoom’s stock is currently overvalued, with a 12-month trailing P/E ratio of approximately 444 times its EPS. However, suppose the company continues to improve its financial performance and gains market share in the video conferencing industry. In that case, the company might have a bright future.

How does zoom make its money?

Zoom, as previously mentioned, provides a range of items aimed at both private individuals and companies.

Customers can use Zoom’s Meetings and Chat product for free since they work on a freemium model. Users can hold group meetings for up to 100 people for up to 40 minutes.

Zoom’s business model is based on charging companies a recurring subscription fee for the company’s various goods. Furthermore, Zoom benefits from the marketing of hardware goods. This resulted in the company’s initial public offering (IPO) in 2019.

Zoom Rooms & Workspaces

Zoom Rooms are video conference room systems that allow businesses to conduct video meetings. Customers can buy from Zoom-certified hardware providers or use their existing hardware providers, including Polycom and Cisco.

The company’s Professional Services division then ensures that the conference room construction goes as smoothly as possible.

Customers must pay a monthly subscription fee of $49 per built conference room (or $41.58 if billed annually)

Finally, institutions in the education, finance, healthcare, and government sectors can take advantage of Zoom’s special offers

Schools, for example, would have to pay $1,800 a year to unlock 20 hosts and gain access to the company’s premium features

Zoom Video Communication (ZM) Statistics

  Zoom Overview

Launch Date 2011
Headquarter San Jose, California
Founder Eric Yuan
Company Type Public (NASDAQ: ZM)
IPO Date 18th April 2019

Zoom Earnings

Zoom has shown steady earnings since its IPO in April 2019. In 2020 zoom has shown

Record high earnings of $622.7 million dollars. Investors look at the quarterly earnings 

Reports when they buy zoom stock

FY 2018 $121.5 million
Q1 2019 $60.1 million
Q2 2019 $74.5 million
Q3 2019 $90.1 million
Q4 2019 $105.8 million
FY 2019 $330.5 million
FY 2020 $622.7 million
.

 

Zoom Funding, Valuation & Revenue

Zoom has raised a total of $146 million in six rounds of venture capital funding, according to Crunchbase. Horizons Ventures, Emergence Capital, Sequoia Capital, and others are among the investors

Zoom’s initial public offering (IPO) in April 2019 received another $356.8 million. Under the ticker symbol ZM, the firm debuted on the Nasdaq stock exchange. Many of Zoom’s tech rivals that went public in 2019 did so despite continuing to lose money. Zoom, on the other hand, was already profitable in 2018, with a net income of $7.58 million.

Revenues of $622.7 million were recorded for 2019, up 88 percent year over year. The company’s net profits grew to $21.7 million. Zoom is currently estimated at around $47 billion.

Is Zoom (ZM) a good stock to buy right now? 

Several well-known investors began to turn positive. The number of pessimistic hedge fund bets increased by eight recently. Zoom Video Communications, Inc. (NASDAQ:ZM) was in 56 hedge funds’ portfolios at the end of the third quarter of 2020. This number has now reached an all-time high of 48.

The number of bullish hedge fund positions in this stock has reached an all-time high, suggesting that the number of bullish hedge fund positions in this stock has reached an all-time high. According to our calculations, ZM isn’t among the top 30 hedge fund stocks (click for Q3 rankings and see the video for a quick look at the top 5 stocks).

 Conclusion

Is zoom stock a good buy? In the last year, 26 Wall Street research analysts have given Zoom Video Communications “buy,” “keep,” and “sell” scores. The stock currently has two sell ratings, ten hold ratings, and fourteen buy ratings. Investors should “hold” Zoom Video Communications stock, according to Wall Street research analysts. 

 

Analysts believe investors should keep any current positions in ZM, but not buy more or sell any existing stock, according to a hold rating.