Zoom Video Communications: A Near-To-Mid Term Performer

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Zoom Video Communications ($NASDAQ:ZM) has been an outstanding performer in the near and mid-term. Zoom’s platform is easy to use and designed to make communication more efficient, which makes it popular among businesses of all sizes.

Additionally, the company has been able to capitalize on the novel coronavirus pandemic by enabling remote work for companies around the world. The company’s success can also be attributed to its low cost of entry – users can sign up for a free basic plan – and its unique features such as breakout rooms and audio transcripts. Zoom is also actively investing in new technology, such as artificial intelligence, that can improve their platform. This has allowed them to stay ahead of competition from larger companies like Microsoft and Cisco, giving them an advantage in the near-to-mid-term. With its recent success, Zoom is poised to remain an excellent performer in the near and mid-term. With its focus on providing an easy-to-use real-time communication platform that is secure and reliable, Zoom Video Communications is well positioned for continued success.

Market Price

Zoom Video Communications have had a strong start to the week, with their stock opening Monday at $64.4 and closing at $65.6, representing a 1.6% increase from its previous close of $64.5. This is indicative of continued positive investment sentiment towards Zoom, and points to further potential for near-to-mid term gains. It is likely that investors’ confidence in the company is due to its innovative approach to video conferencing and other communication solutions, as well as its track record of performance in the past. As such, Zoom Video Communications looks set to be a strong performer in the near-to-mid term. Live Quote…

About the Company

Income Snapshot

Below shows the total revenue, net income and net margin for ZM. More…

Cash Flow Snapshot

Below shows the cash from operations, investing and financing for ZM. More…

Balance Sheet Snapshot

Below shows the total assets, liabilities and book value per share for ZM. More…

Key Ratios Snapshot

Some of the financial key ratios for ZM are shown below. More…

Analysis

GoodWhale’s analysis of ZOOM VIDEO COMMUNICATIONS’ fundamentals yielded a ‘rhino’ classification, indicating a company that has achieved moderate growth in terms of revenue or earnings. This could make the company of interest to a range of investors. Strong asset and growth metrics, combined with a solid profitability score, mean that ZOOM VIDEO COMMUNICATIONS is likely to be appealing to those looking for capital appreciation. However, the company has a weak dividend score, so this may put off those looking for income return. Overall, ZOOM VIDEO COMMUNICATIONS receives a high health score of 10/10 due to its strong cashflows and debt, meaning it is well-placed to pay off current debt and continue to fund operations in the future. More…

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

Zoom Video Communications is an American communications technology company that provides video-first unified communications, online meetings, chat, and webinars. As a publicly traded company, it is a popular investment option among traders. Its financials show strong year-on-year revenue growth, driven by the surge in demand for its products and services from both consumer and enterprise customers. Zoom has established itself as a leader in enterprise software and services, due to its reliable platform, quality of service, and high customer satisfaction scores.

Its competitive landscape is becoming increasingly crowded with many larger tech giants like Microsoft and Google entering the market, but Zoom is well-positioned to maintain its leadership role due to its customer focus, strong brand recognition, and innovative product offerings. Investors can expect Zoom to maintain a high rate of growth in the near-to-mid term as its user base expands and its product offering expands.