Zoom’s latest fiscal year (FY) was FY 2021, which ended Jan. 31, 2021. For that period, the company reported net income of $672.3 million on revenue of $2.7 billion. The company is headquartered in San Jose, Calif., and has additional dowmarkets offices in more than 15 locations in the United States, Europe, Asia, and Australia. The IPO market is picking up, with Lyft and PagerDuty debuting in recent weeks, and Pinterest opening alongside Zoom on Thursday.
- As of Aug. 23, 2021, Zoom had 240,744,533 outstanding shares of Class A common stock and 56,383,369 outstanding shares of Class B common stock.
- In July 2021, Zoom Video and Five9 (FIVN), which automates call center services, announced a deal to merge.
- Zoom’s cloud-based software sets up video calls, with chat tools available.
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As a long-term investor, I don’t ignore past performance, but I’m generally more interested in where the company is heading. Zoom has provided investors with spectacular growth and returns in the past couple of years; however, I don’t see that continuing into the future. The pullback in pandemic-driven demand, in addition to increased competition from massive tech companies like Microsoft and Alphabet, will challenge Zoom’s business moving from here on out. With growth expected to hit the breaks in the years ahead, the company will likely become less attractive to investors who bought into Zoom’s growth story.
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Many analysts predict that Zoom could grow its annual revenue to around the £1bn mark by 2022, a significant increase from the £662m in 2019. Besides the spike of users from coronavirus, many companies are becoming more remote. This ‘remote working canadian forex brokers revolution’ will require effective video conferencing software, such as Zoom to contribute to the revolution. Zoom Video Communications (ZM), the video-conferencing company has seen major price increases since the Coronavirus outbreak.
Has Zoom (ZM) ever split its stock?
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Zoom Video Communications (ZM) Stock Price, News & Analysis
Zoom video communication’s stock made its debut on the NASDAQ under the ticker ‘ZM’ on Thursday the 18th of April 2019. Zoom announced their stock would be priced at anywhere between $32.00 and $35.00. Once the stock was publicly available, the price quickly surged over 80% to $65, before ending its first day of trading at around $62. In the alpari forex broker review last month, 2 experts released ratings on this stock with an average target price of $72.5. As the coronavirus crisis eases, retaining small businesses as well as corporate accounts will be one key to Zoom’s success. For customers with one to 10 employees, renewals are expected to slow as the economy reopens and shelter-in-place orders lift.
Zoom Video Communications, Inc.
To make the decision even easier, Zoom is trading at or near its low for price-to-earnings (P/E) and price-to-sales (P/S) ratios. Whereas during the pandemic the case could be made that the company’s valuation got ahead of itself, it’s clear now that the valuation is more in line with, if not underestimating, Zoom’s fundamentals. While the growth has slowed when compared to the pandemic highs, it’s clear that Zoom is still executing and growing — and worth considering heading into 2022.