Zoom Video Communications Inc. (ZM) Buy, Sell…

Zoom Video Communications Inc. (ZM)

97.40

-0.64 (0.65%)

as of Oct 27, 2026, 8:00:00 pm Market Closed.

144 watching

COMMENT

Usage has gone down, maybe because people are returning to the office and students are on vacation. Also, there's more competition now, not just Microsoft and Google. Zoom and its technology are here to stay, but the valuation needs to come down. As we normalize work and people return to offices, then businesses may use other platforms, or the small offices may use the free Zoom service. Zoom is more branded than its peers, so that is a competitive advantage. However, students will return to classes and won't be taking classes online.

DON'T BUY

You have to look at where the stock went to, and where the competitive threats will be. It's become a short target, and under pressure. There will be lots of alternatives. Right now, a very dangerous trade. Stay away.

COMMENT

It reports Monday. A year ago, this was the hottest stock. He believes they can deliver one more good quarter, but will anyone care? He believes in Zoom, but not sure anyone will care.

BUY

Zoom is up 20% for the year and has enjoyed a good year. It's not a Covid or recover play, but a staple that's here to stay.

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TOP PICK

Stockchase Research Editor: Michael O'Reilly This is a bit of a contrarian play. After hitting highs over $550 per share in mid-October, ZM is now trading just above $355 -- over 35% cheaper. Although vaccines are rolling out, it could be that remote meetings may still be necessary until late summer. Other competitors have emerged in the space, but the platform of ZM remains the preference. Current operations have allowed them to accumulate over $700 million in cash over the year. We would buy this with a stop-loss at $250, looking for a return to $435 -- over 20% upside. Yield 0% (Analysts’ price target is $435.00)

PARTIAL SELL

Allan Tong’s Discover Picks The future of Zoom looks less rosy. Since hitting $568.34 on Oct. 19, Zoom has plunged 29% to just below $300. The Nov. 10 close of $376.01 suggests a floor, but each time there’s positive vaccine news, ZM takes a hit. Will people continue to use Zoom in 2021’s reopening? Yes, but not to the degree as they are in 2020. That’s my bet. Read The Truth About ABNB’s Worth and Caution on IPOs for our full analysis.

DON'T BUY

Tremendous performer through the pandemic. Huge multiples, doesn't make money, huge expectations on the stock. 1/3 of client base is small business, and the retention rate is very low. Pandemic has given it momentum. Competing products out there. Wouldn't buy it here.

BUY ON WEAKNESS

It has zoomed 203% in the past 6 months, though it fell 8.5% this week. No, this pullback is not the end of Zoom, but rather a buying opportunity.

BUY

Is one of 7 growth stocks where investors don't care about earnings during this pandemic, so buy them: We live in the Zoom economy. It has insane growth. Total meeting minutes by customer is 30x what they were last year and yet Zoom doesn't have a low-single-digit penetration of this market. It's just begun to monetize all these users. Whenever Covid cases rise, investor throw money at this stock.

BUY

Zoom video reports Wednesday. Any figures that show an extension beyond the current reach/performance from what we're getting from the pandemic is significant. Zoom is synonymous with the pandemic but he sees more to this stock than that.

DON'T BUY

One of the most expensive stocks at price to revenue, so this is a red flag. Gives him pause. How much future success is already built into the price? An alternative is Cisco, with their add-on to access what Zoom does. CSCO is stable, with a reasonable valuation. Companies eventually will need to invest in switching and routers, and this will come straight Cisco's way.

DON'T BUY

Great product. Challenge is the valuation is extremely stretched. Reticent to pay a high multiple for a company that's first to market as, ultimately, it will attract competition. It's a trade, not an own.

PARTIAL SELL

Up 635% for the year during Covid. They reported a great quarter earlier this month and the stock hit new highs and even made a new high today as tech stocks (and markets) slid. This is unrealistic. Profit-taking is in order now. Like the 1999 dot-com bubble, this is a prisoner of its own momentum.

COMMENT

He is a value investor and he does not believe the criteria are met for either. To play momentum, it is another game. As these companies mature, they will trade at normal PEs.

PARTIAL SELL

It has had a huge run. If you have made some money, take your initial money off the table. The valuation will come down at some point for sure.

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Zoom Video Communications Inc. (ZM)