Is Zoom Video Communications Stock a Buy? The Motley Fool

These customers accounted for 31% of revenues, up from 29% in the year-ago quarter. The momentum is expected to have continued in the to-be-reported quarter. The Zacks Consensus Estimate for customers contributing more than $100,000 in revenues is currently pegged at 4,042 for the third quarter fiscal 2025. However, ZM has been facing significant competition from Cisco, Microsoft and Google Meet.

Zoom Communications price target raised to $89 from $68 at Piper Sandler

Zoom Video Communications (ZM 2.34%) stock surged in Tuesday’s trading. The company’s share price closed out the daily session up 8%, according to data from S&P Global Market Intelligence. In addition to its strong quarterly results, the company issued third quarter EPS guidance above estimates and strong fiscal year 2025 guidance. ZM shares are trading higher Thursday after the company posted better-than-expected second-quarter financial results on Wednesday.

Zoom Communications

Zoom, which changed its name from Zoom Video Communications to Zoom Communications on Monday, ended the quarter with approximately 192,400 enterprise customers. Online monthly average churn reached an all-time low of 2.7% in the quarter. Its forward price-to-earnings (P/E) ratio is just under 14, and the price-to-sales (P/S) ratio of less than 5 is just above all-time lows. That valuation positions the stock for a massive surge if the company can stoke a recovery in revenue growth.

At the end of the second quarter of alpari forex broker review fiscal 2025, Zoom AI Companion had a reach of 1.2 million accounts. Positive momentum is expected in the to-be-reported quarter as well.These efforts are expected to have boosted the adoption of the company’s solution among enterprise customers. The consensus estimate for enterprise customers in the fiscal third quarter is currently pegged at 196,459.Zoom Video’s freemium business model helps it win customers rapidly, whom it can later convert into paying customers. In the fiscal second quarter, customers contributing more than $100,000 in revenues in the trailing 12 months grew 7.1% to 3,933.

Zoom Video Earnings Are Imminent; These Most Accurate Analysts Revise Forecasts Ahead Of Earnings Call

AVON, Ohio–(BUSINESS WIRE)– #AI–Jenne, Inc., a premier value-added distributor of technology products and solutions, is excited to announce a significant expansion of its portfolio with the additio… Comprehensive cross-platform coverage of the U.S. market close on Bloomberg Television, Bloomberg Radio, and YouTube with Romaine Bostick, Alix Steel, Scarlet Fu, Carol Massar and Tim Stenovec. Upgrade to MarketBeat All Access to add more stocks to your watchlist. Click the link below and we’ll send you MarketBeat’s list of seven best retirement stocks and why they should be in your portfolio. Like every other company, Zoom says a serious injection of artificial intelligence (AI) is on the way. «What may have been a ‘nice-to-have’ is now a ‘must-have,'» the company explained, calling its Zoom AI Companion the «heartbeat» of its future.

When is Zoom Video Comms (NASDAQ:ZM) reporting earnings?

You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP axes broker Filter. Still, operating income fell during that period, and much of the gain came from $114 million in «other income,» which consists of income from interest, foreign currency, and marketable securities. Unfortunately for Zoom bulls, that «increase» is likely a one-time event. Between the AI tool and its expected growth in hybrid and remote knowledge workers, Ark Invest believes Zoom’s average revenue per user (ARPU) will grow by 26% yearly. Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.

• Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.
• The stock is currently trading at new 52-week highs ahead of earnings.
• The momentum is expected to have continued in the to-be-reported quarter.
• Zoom Video’s stock is undervalued, trading at 15x forward free cash flow, with 30% of its market cap in cash and no debt.
• Zoom Video shares are climbing on heavy trading volume and trending on social media as investors digest the report.

Zoom Video’s growth is well-positioned to accelerate due to the increasing trend of remote work and reduced business travel spending. Zoom Video Communications raised its forecast for fiscal 2025 revenue on Monday, anticipating robust demand for its online video conferencing software as it expands its product portfolio, and clients … © 2024 Market data provided is at least 10-minutes delayed and hosted by Barchart Solutions. Information is provided ‘as-is’ and solely for informational purposes, not for trading purposes or advice, and is delayed.

The Zacks Consensus Estimate for the top line is currently pegged at $1.16 billion, indicating growth of 2.34% from the year-ago quarter.Non-GAAP earnings per share are expected in the range of $1.29-$1.31. The consensus mark for earnings has remained steady at $1.31 per share over the past 30 days, indicating growth of 1.55% year over year. review lessons in corporate finance: Admittedly, investors like Ark Invest may have to adjust their expectations. With 2026 just two years away, Ark Invest’s base case estimates are looking increasingly unlikely to come to pass, and it may even fall short of the $700-per-share bear case estimate.

Still, the bear estimate calls for a $700-per-share or less stock price, amounting to more than a 10-fold gain from current levels if that price target holds. As Wood and others have stated, Zoom is much more than an online meeting platform. It is a comprehensive communications ecosystem that includes team chat platforms, online whiteboards, VoIP phone service, workspaces, email, and other services.