Stockchase Research Editor: Michael O'Reilly The market has revalued ZM following its recent earnings release and now it is a TOP PICK. As companies reemerge from the pandemic, remote working is going to continue to play a larger role. The company has zero long term debt and almost one-quarter of the company's market cap is in cash. For the fifth consecutive quarter, revenue was over $1 billion showing its strategy has longevity. We recommend setting a trailing stop at $60, looking to achieve $120 -- upside potential over 47%. Yield 0% (Analysts’ price target is $136.77)
If you say growth/tech stock are trading 90% below retail highs and are now worth buying, you're wrong to expect stocks like this to return to past levels. Change strategy, sectors and stocks.
Wall Street has left certain "pandemic" stocks for dead. This flew far too high during Covid then plunged hard. But Zoom is now a viable stock though it still trades at a high 35x PE. Too many competitors now, so Zoom has to do something to stand out. If not, then don't buy.
Good balance sheet and a good company, but they need to diversify their services, like making an acquisition. They recently failed to close a deal, so shares got punished.
Investors are not pulling out because of rising inflation. Also, they have already factored in that the outcome of Omicron will ultimately be a good one for society, and that the Fed will respond by being more hawkish. That's why overall risk in the market is changing. Large- and mega-caps continue to generate a lot of free cash flow and boast strong balance sheets. Markets will continue to rise, but don't invest in the speculative parts of the market. Where's Peloton, Zoom, small-cap biotechs or the Ark Investing stocks? Hedge funds are moving away from them. Trade up in quality.
2020 growth was fantastic, but now there are so many other choices in videoconferencing. ZM has retraced a lot, and will likely decline further over time, until another company buys it, since Zoom is a single-product company. You can short it, but he isn't buying it.
It was once the hottest stock in the universe, but has become a total dog since it tanked a year ago. That said, could now be a buying opportunity if you feel Covid isn't going away. Let's hear what they say when they report late Monday. They have a lot of cash and opportunities. We'll judge then.
United Air vs. Zoom Video Now, post-Covid, United has doubled off its lows while Zoom has cut in half from its highs. Bet on United, not Zoom, because international travel is making a comeback after people have saved up their money. He predicts the holiday season will see huge travelling. Business travel may come back in Q1 next year, but Zoom is too efficient and too good and saves a lot of money. Zoom trades at 57x earnings (not sales). Zoom is here to stay and long-term the stock is good. But near-term, Zoom needs to do something new, like video games, or gambling. United has more room to run while Zoom is one acquisition away from turning things around.
They hold a conference next week. Zoom needs to show they can grow aggressively through new products and acquisitions. If not, this will give up gains in recent days.
Zoom Video Communications Inc. (ZM) Frequently Asked Questions
What is Zoom Video Communications Inc. stock symbol?
Zoom Video Communications Inc. is a American stock, trading under the symbol ZM (previously ZM-Q on Stockchase) on the NASDAQ (ZM). It is usually referred to as NASDAQ:ZM or ZM
Is Zoom Video Communications Inc. a buy or a sell?