There are currently 2 sell ratings, 11 hold ratings and 5 buy ratings for the stock. The consensus among Wall Street equities research analysts is that investors should “hold” ZM shares. A hold rating indicates that analysts believe investors should maintain any existing positions they have in ZM, but not buy additional shares or sell existing shares. A number of research analysts recently issued reports on the company. Jefferies Financial Group assumed coverage on Zoom Video Communications in a report on Tuesday, March 19th. They issued a “hold” rating and a $70.00 target price for the company.
Rosenblatt Securities reiterated a “neutral” rating and issued a $75.00 target price on shares of Zoom Video Communications in a report on Tuesday, March 26th. Mizuho decreased their target price on Zoom Video Communications from $100.00 to $90.00 and set a “buy” rating for the company in a report on Tuesday, February 27th. Piper Sandler lifted their target price on Zoom Video Communications from $69.00 to $72.00 and gave the company a “neutral” rating in a report on Friday, January 12th. Finally, BNP Paribas lowered Zoom Video Communications from a “neutral” rating to an “underperform” rating and set a $60.00 target price for the company.
He started out with WebEx Communications and eventually became its vice president of engineering. With an end-of-year rally, Zoom fbs forex review stock advanced 6% in 2023. The Nasdaq composite shot up 43% amid buzz over generative artificial intelligence technology.
- Amid Covid-19 emergency, demand for Zoom videoconferencing software surged as businesses told employees to work from home.
- There are reasons the stock is attractive despite its struggling revenue growth.
- Shares are trading at a forward price-to-earnings (P/E) ratio of just under 14, a huge discount to the broader market.
- The videoconferencing company faces a lot of near-term challenges.
- And the outlook for ZM stock is tied to whether the company morphs into a broader business communications platform.
In fiscal 2022, its revenue and adjusted EPS grew another 55% and 52%, respectively, even as the pandemic waned. It tried to buy the cloud-based contact center Five9 that year to offset its gradual slowdown, but that deal eventually fell apart. Gain deeper insights into company revenues with a detailed analysis of revenue sources.
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Department of Justice-led panel, named Team Telecom, was investigating the proposed merger’s potential national security risks. Zoom Video Communications’ stock is owned by many different institutional and retail investors. Top institutional shareholders include Avondale Wealth Management (0.00%). 450 employees have rated Zoom Video Communications Chief Executive Officer Eric S. Yuan on Glassdoor.com. Eric S. Yuan has an approval rating of 97% among the company’s employees. This puts Eric S. Yuan in the top 30% of approval ratings compared to other CEOs of publicly-traded companies.
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Zoom Video Communications’ stock was trading at $71.91 on January 1st, 2024. Since then, ZM shares have decreased by 11.5% and is now trading at $63.64. Zoom Video Communications Inc.’s stock surged in extended trading Monday, after the videoconferencing company topped expectations across the board with its financial results and forecasts. Still, Zoom feels like a car stuck in the mud, spinning its tires but not moving much. Hopefully, revenue increases will accelerate again, but investors might have to be patient and wait at least another four quarters, barring Zoom outperforming its guidance.
That might be why its insiders sold more than 3 times as many shares as they bought over the past 12 months. Its 101% net revenue retention rate signals that existing customer spending lmfx review is stagnant. But for fiscal 2025, Zoom expects its revenue to only rise 2% as its adjusted EPS drops 7%. Generally, low revenue growth is going to translate to low earnings growth.
Zoom Video Communications Stock Down 0.9 %
In the first stage we need to estimate the cash flows to the business over the next ten years. Where possible we use analyst estimates, but when these aren’t available we extrapolate the previous free cash flow (FCF) from the last estimate or reported value. We assume companies with shrinking free cash flow will slow their rate of shrinkage, and that companies with growing free cash flow will see their growth rate slow, over this period. We do this to reflect that growth tends to slow more in the early years than it does in later years. 18 Wall Street equities research analysts have issued “buy,” “hold,” and “sell” ratings for Zoom Video Communications in the last twelve months.
But since Zoom is so profitable and has so much cash, it can financially engineer earnings growth and drive shareholder value. Digging through Zoom’s fourth-quarter earnings yielded Kraken Review some surprises. Although the company still must find a way to get top-line growth going again, the stock offers investors a lot of potential upside at this bargain-basement price.
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