The politics of tariffs could easily backfire on Trump if his agenda pushes up inflation and grinds down growth, making this a high stakes wager for a president eager to declare his authority over the U.S. economy. A good broker should also have low transaction fees so that you can keep your costs low. The broker should also have an all-around trading ZM stock analysis to help you make the right decision.
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Because of the anticipated high volatility, make sure to manage your risk well by only trading with a small portion of your equity in every trade and using stop-loss orders correctly. Since no trading strategy is perfect, you should always use an appropriate risk management strategy, such as a stop-loss order. This will help to minimize losses if the market goes against your prediction. Zoom’s history can be traced back to 1997 when Eric Yuan, the company’s CEO and founder, came to the U.S. He commenced with WebEx Communications, which was later acquired by Cisco in 2007.
How many shares of Zoom (ZM) stock are there?
- It also adds the $24 billion contact center opportunity to its addressable market.
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- Now that growth is coming back to earth, the stock has fallen 51% from its high last year.
- Trump tried to minimize the likelihood that his policies would trigger anything more than a brief bump in inflation.
- The president has openly antagonized multiple U.S. trading partners over the past several weeks, levying tariff threats and inviting them to retaliate with import taxes of their own that could send the economy hurtling into a trade war.
- Zoom has been faced with headwinds as growth has normalized in recent years from pandemic heights, and it announced it was slashing its workforce by 15% in 2023 an an effort to manage costs.
- They set an “outperform” rating and a $85.00 target price for the company.
Zoom Video Communications, Inc. provides unified communications platform in the Americas, the Asia Pacific, Europe, the Middle East, and Africa. It serves individuals; and education, entertainment/media, enterprise infrastructure, finance, government, healthcare, manufacturing, non-profit/not for profit and social impact, retail/consumer products, and software/Internet industries. The company was formerly known as Zoom Communications, Inc. and changed its name to Zoom Video Communications, Inc. in May 2012. The company was incorporated in 2011 and is headquartered in San Jose, California. For investors dowmarkets seeking exposure to the evolving workplace technology sector, Zoom presents a compelling opportunity at current levels. The company’s strong financial position, expanding product portfolio and leadership in AI innovation make it well-positioned to capture growth in 2025 and beyond.
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Certain Zacks Rank stocks for which no month-end price was available, pricing information was not collected, or for certain other reasons have been excluded from these return calculations. Zacks may license the Zacks Mutual Fund rating provided herein to third parties, including but not limited to the issuer. We essentially look at how sell-side analysts covering the stock are revising their earnings estimates to reflect the impact of the latest business trends. And if earnings estimates go up for a company, the fair value for its stock goes up. A higher fair value than the current market price drives investors’ interest in buying the stock, leading to its price https://www.forex-reviews.org/ moving higher. This is why empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.
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. And yet the business performed solidly throughout the past few years even as the stock fell. Zoom reported revenues of $1.18 billion in the last reported quarter, representing a year-over-year change of +3.6%.
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The Grid trading president has openly antagonized multiple U.S. trading partners over the past several weeks, levying tariff threats and inviting them to retaliate with import taxes of their own that could send the economy hurtling into a trade war. Trump’s proclamation identifies value-added taxes — which are similar to sales taxes and common in the European Union — as a trade barrier to be included in any reciprocal tariff calculations. Other nations’ tariff rates, subsidies to industries, regulations and possible undervaluing of currencies would be among the factors the Trump administration would use to assess tariffs.
Zoom Communications, Inc.
- New AI products include Zoom Virtual Agent, Zoom Revenue Accelerator, and Zoom AI Companion.
- So, you might want to look at some of the facts that could shape the stock’s performance in the near term.
- Ark Invest has backed estimates up by taking a significant position in the media stock.
- 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.
- Workvivo was named Meta Platform’s META only preferred migration partner for its customers as it retires Workplace from Meta.
- Since no trading strategy is perfect, you should always use an appropriate risk management strategy, such as a stop-loss order.
The $4.66 billion and $4.79 billion estimates for the current and next fiscal years indicate changes of +2.9% and +2.8%, respectively. While earnings growth is arguably the most superior indicator of a company’s financial health, nothing happens as such if a business isn’t able to grow its revenues. After all, it’s nearly impossible for a company to increase its earnings for an extended period without increasing its revenues.
This acquisition also saw Yuan promoted to Cisco’s corporate video president of engineering for collaboration software. Valued at $99, click below to receive our just-released reportpredicting the 7 stocks that will soar highest in the coming month. The upcoming release of Custom AI Companion add-ons for Healthcare and Education in early 2025, along with Zoom Workplace for Frontline, positions the company to tap into new market opportunities.
While valuation metrics may appear elevated, Zoom’s strategic initiatives, improving growth metrics and robust profitability justify its premium. The combination of its AI-first strategy, enterprise momentum and new product initiatives creates multiple pathways for growth. With a clear monetization strategy for AI capabilities and strong customer adoption, now appears to be an opportune time for investors to consider adding Zoom stock to their portfolios ahead of potential appreciation in 2025. Our analysis is essentially based on how sell-side analysts covering the stock are revising their earnings estimates to take the latest business trends into account. When earnings estimates for a company go up, the fair value for its stock goes up as well. 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.