Price Target Set at $80 for Zoom Video Communications Stock
December 24, 2022
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Zoom Video Communications ($NASDAQ:ZM), Inc. is a cloud-based video conferencing company based in San Jose, California. It offers a comprehensive suite of products and services, including cloud-based video meetings, voice over Internet Protocol (VoIP) phone services, webinars, and team collaboration tools. The company has become one of the most popular video conferencing platforms in the world, used by businesses, schools, and other organizations. Recently, analysts have set a price target of $80 for Zoom Video’s stock. The price target indicates that analysts believe the company’s stock is undervalued and is poised to continue to rise. Zoom Video’s stock is also supported by its strong product offering. The company recently launched several new features such as end-to-end encryption and additional security measures to protect its users’ data. It also plans to launch a host of new products and services in 2021, which could further boost its stock price.
In addition, analysts believe that Zoom Video could benefit from the increasing trend of remote work and virtual events, which is likely to remain popular even after the pandemic subsides. This could provide a long-term tailwind for the company’s stock price. Overall, it seems that analysts are confident in the future of Zoom Video Communications and their bullish outlook is reflected in their price target for the company’s stock.
Market Price
Monday saw a slight decline in the stock price of Zoom Video Communications, with the opening price of $69.4 and closing at $69.1, representing a 1.1% drop from the previous closing price of $69.9. Despite this minor setback, the company’s future outlook remains strong, with analysts setting a new price target of $80 for the stock. The impressive performance of Zoom Video Communications and its strong fundamentals have been reflected in the stock’s performance over the last year. This impressive performance has been driven by the company’s strong growth in revenues and profits over the past year. The company’s new price target of $80 reflects analysts’ confidence in the company’s prospects going forward. The company’s core products and services have seen a surge in demand over the past year and it is well-positioned to capitalize on this growing demand going forward.
Additionally, Zoom Video Communications has invested heavily in research and development to innovate and develop new products and services to meet the changing needs of its customers. All things considered, Zoom Video Communications looks set to continue its strong performance in the coming months and years and analysts believe that its stock price has a lot of upside potential from its current levels. Investors looking for exposure to this high-growth company should certainly consider adding Zoom Video Communications to their portfolios. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for ZM. More…
| Total Revenues | Net Income | Net Margin |
| 4.35k | 698.23 | 18.7% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for ZM. More…
| Operations | Investing | Financing |
| 1.29k | -552.61 | -935.5 |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for ZM. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 7.84k | 2.08k | 20.13 |
Key Ratios Snapshot
Some of the financial key ratios for ZM are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 100.4% | 334.7% | 10.9% |
| FCF Margin | ROE | ROA |
| 27.1% | 5.0% | 3.8% |
VI Analysis
ZOOM VIDEO COMMUNICATIONS is a medium risk investment according to VI Risk Rating. This rating is based on the company’s fundamentals which reflect its long term potential. An analysis done through the VI App has detected three risk warnings in the cashflow statement, non-financial and financial journal. When investing in a company, it is important to understand the risks associated with the business. A good way to do this is to assess the company’s financial health and stability. By looking at the fundamentals of a company, such as its balance sheet, income statement, and cash flow statement, investors can determine how well the company is performing and if it is a viable investment. The VI App can help investors assess a company’s risks by looking at a variety of factors. It can analyze the company’s financials, check for any red flags in its non-financial data, and review its financial journal. This information can help investors understand the risks associated with investing in a particular company and make an informed decision. It is important to note that investing in any company comes with some level of risk. However, by using the VI App and assessing a company’s fundamentals, investors can gain insight into the risks associated with investing in ZOOM VIDEO COMMUNICATIONS and determine if it is a good fit for their portfolio. More…
VI Peers
In recent years, the video conferencing market has been growing rapidly with the advent of new technologies. Among the various players in this market, Zoom Video Communications Inc has emerged as a clear leader, with a market share of around 60%.
However, the company faces stiff competition from a number of other players, including Blackbird PLC, ironSource Ltd, and SentinelOne Inc.
– Blackbird PLC ($LSE:BIRD)
Blackbird PLC is a 54.22M market cap company with a ROE of -8.0%. The company is engaged in the business of providing technology solutions and services. It offers a range of products and services, including software development, web design, e-commerce, and online marketing. The company has a strong focus on delivering quality products and services to its clients. It has a team of experienced professionals who are committed to providing the best possible solutions to their clients’ needs.
– ironSource Ltd ($NYSE:IS)
IronSource Ltd is a provider of software development tools. The company has a market cap of 3.26B as of 2022 and a return on equity of 4.06%. IronSource Ltd provides tools to enable developers to create, manage, and optimize their applications. The company offers a suite of products that help developers to design, develop, test, and deploy their applications.
– SentinelOne Inc ($NYSE:S)
SentinelOne Inc is a publicly traded cybersecurity company headquartered in Mountain View, California. The company provides endpoint security, network security, and cloud security solutions. As of 2022, the company has a market capitalization of 6.58 billion and a return on equity of -12.5%. The company’s products are used by government agencies and Fortune 500 companies around the world.
Summary
Investing in Zoom Video Communications (ZM) could be a profitable venture for those seeking to capitalize on the company’s potential future growth. Given Zoom’s impressive track record and potential for continued growth, the company’s stock has recently been given a price target of $80 by Wedbush. Investors should be aware that investing in any company carries risk. Zoom has seen competition in the form of Microsoft, Google, Cisco, and other companies offering similar services. Additionally, Zoom’s success could be hampered by legal or regulatory issues, as well as any unforeseen economic downturn.
However, those willing to take on the risk associated with investing in Zoom could be handsomely rewarded. The company is well-positioned to capitalize on the growing demand for video conferencing services, and its current valuation still leaves room for upside. For those looking to invest in a high-growth tech stock, Zoom could be a great option.
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