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How to buy Zoom Video Communications stock | 559
Own Zoom Video Communications stock in just a few minutes.
Zoom Video Communications, Inc is a telecom services business based in the US. Zoom Video Communications shares (ZM) are listed on the NASDAQ and all prices are listed in US Dollars. Zoom Video Communications employs 3,427 staff and has a trailing 12-month revenue of around USD$1.3 billion.
How to buy shares in Zoom Video Communications
- Compare share trading platforms. If you're a beginner, look for a platform with low commissions, expert ratings and investment tools to track your portfolio. Narrow down top brands with our comparison table.
- Open and fund your brokerage account. Complete an application with your personal and financial details, like your ID and bank information. Fund your account with a bank transfer, credit card or debit card.
- Search for Zoom Video Communications Find the stock by name or ticker symbol: ZM. Research its history to confirm it's a solid investment against your financial goals.
- Purchase now or later. Buy today with a market order or use a limit order to delay your purchase until Zoom Video Communications reaches your desired price. To spread out your purchase, look into dollar-cost averaging, which smooths out buying at consistent intervals and amounts.
- Decide on how many to buy. At last close price of USD$559, weigh your budget against a diversified portfolio that can minimize risk through the market's ups and downs. You may be able to buy a fractional share of Zoom Video Communications, depending on your broker.
- Check in on your investment. Congratulations, you own a part of Zoom Video Communications. Optimize your portfolio by tracking how your stock — and even the business — performs with an eye on the long term. You may be eligible for dividends and shareholder voting rights on directors and management that can affect your stock.
How has coronavirus impacted Zoom Video Communications's share price?
Since the stock market crash in March caused by coronavirus, Zoom Video Communications's share price has had significant positive movement.
Its last market close was USD$559, which is 81.80% up on its pre-crash value of USD$101.76 and 621.20% up on the lowest point reached during the March crash when the shares fell as low as USD$77.51.
If you had bought USD$1,000 worth of Zoom Video Communications shares at the start of February 2020, those shares would have been worth USD$1,820.58 at the bottom of the March crash, and if you held on to them, then as of the last market close they'd be worth USD$6,378.19.
Zoom Video Communications share price
Use our graph to track the performance of ZM stocks over time.Zoom Video Communications shares at a glance
Information last updated 2020-10-20.
| Latest market close | USD$559 |
|---|---|
| 52-week range | USD$60.9675 - USD$588.84 |
| 50-day moving average | USD$455.7179 |
| 200-day moving average | USD$276.14 |
| Wall St. target price | USD$429.27 |
| PE ratio | 707.5949 |
| Dividend yield | N/A (0%) |
| Earnings per share (TTM) | USD$0.783 |
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Is it a good time to buy Zoom Video Communications stock?
The technical analysis gauge below displays real-time ratings for the timeframes you select. This is not a recommendation, however. It represents a technical analysis based on the most popular technical indicators: Moving Averages, Oscillators and Pivots. Finder might not concur and takes no responsibility.
This chart is not advice or a guarantee of success. Rather, it gauges the real-time recommendations of three popular technical indicators: moving averages, oscillators and pivots. Finder is not responsible for how your stock performs.
Zoom Video Communications price performance over time
Historical closes compared with the close of $559 from 2020-10-16
| 1 week (2020-10-13) | 7.75% |
|---|---|
| 1 month (2020-09-18) | 27.41% |
| 3 months (2020-07-20) | 108.13% |
| 6 months (2020-04-20) | 275.19% |
| 1 year (2019-10-18) | 745.94% |
|---|---|
| 2 years (2018-10-16) | N/A |
| 3 years (2017-10-16) | N/A |
| 5 years (2015-10-16) | N/A |
Is Zoom Video Communications under- or over-valued?
Valuing Zoom Video Communications stock is incredibly difficult, and any metric has to be viewed as part of a bigger picture of Zoom Video Communications's overall performance. However, analysts commonly use some key metrics to help gauge the value of a stock.
Zoom Video Communications's P/E ratio
Zoom Video Communications's current share price divided by its per-share earnings (EPS) over a 12-month period gives a "trailing price/earnings ratio" of roughly 708x. In other words, Zoom Video Communications shares trade at around 708x recent earnings.
That's relatively high compared to, say, the trailing 12-month P/E ratio for the NASDAQ 100 at the end of 2019 (27.29). The high P/E ratio could mean that investors are optimistic about the outlook for the shares or simply that they're over-valued.
Zoom Video Communications's PEG ratio
Zoom Video Communications's "price/earnings-to-growth ratio" can be calculated by dividing its P/E ratio by its growth – to give 2.5442. A low ratio can be interpreted as meaning the shares offer better value, while a higher ratio can be interpreted as meaning the shares offer worse value.
The PEG ratio provides a broader view than just the P/E ratio, as it gives more insight into Zoom Video Communications's future profitability. By accounting for growth, it could also help you if you're comparing the share prices of multiple high-growth companies.
Zoom Video Communications's EBITDA
Zoom Video Communications's EBITDA (earnings before interest, taxes, depreciation and amortisation) is USD$251.3 million.
The EBITDA is a measure of a Zoom Video Communications's overall financial performance and is widely used to measure a its profitability.
Zoom Video Communications financials
| Revenue TTM | USD$1.3 billion |
|---|---|
| Operating margin TTM | 17.09% |
| Gross profit TTM | USD$507.3 million |
| Return on assets TTM | 7.79% |
| Return on equity TTM | 23.74% |
| Profit margin | 17.13% |
| Book value | $4.216 |
| Market capitalisation | USD$153.6 billion |
TTM: trailing 12 months
Shorting Zoom Video Communications shares
There are currently 12.8 million Zoom Video Communications shares held short by investors – that's known as Zoom Video Communications's "short interest". This figure is 57% up from 8.2 million last month.
There are a few different ways that this level of interest in shorting Zoom Video Communications shares can be evaluated.
Zoom Video Communications's "short interest ratio" (SIR)
Zoom Video Communications's "short interest ratio" (SIR) is the quantity of Zoom Video Communications shares currently shorted divided by the average quantity of Zoom Video Communications shares traded daily (recently around 16.4 million). Zoom Video Communications's SIR currently stands at 0.78. In other words for every 100,000 Zoom Video Communications shares traded daily on the market, roughly 780 shares are currently held short.
However Zoom Video Communications's short interest can also be evaluated against the total number of Zoom Video Communications shares, or, against the total number of tradable Zoom Video Communications shares (the shares that aren't held by "insiders" or major long-term shareholders – also known as the "float"). In this case Zoom Video Communications's short interest could be expressed as 0.05% of the outstanding shares (for every 100,000 Zoom Video Communications shares in existence, roughly 50 shares are currently held short) or 0.0661% of the tradable shares (for every 100,000 tradable Zoom Video Communications shares, roughly 66 shares are currently held short).
Such a low SIR usually points to an optimistic outlook for the share price, with fewer people currently willing to bet against Zoom Video Communications.
Find out more about how you can short Zoom Video Communications stock.
Zoom Video Communications share dividends
We're not expecting Zoom Video Communications to pay a dividend over the next 12 months.
Zoom Video Communications overview
Zoom Video Communications, Inc. provides a video-first communications platform in the Americas, the Asia Pacific, Europe, the Middle East, and Africa. The company's product portfolio includes Zoom Meetings that offers HD video, voice, chat, and content sharing through mobile devices, desktops, laptops, telephones, and conference room systems; Zoom Phone, an enterprise cloud phone system that provides secure call routing, call queuing, call detail reports, call recording, call quality monitoring, voicemail, switch to video, and other services, as well as inbound and outbound calling services; and Zoom Chat enables sharing messages, images, audio files, and content in desktop, laptop, tablet, and mobile devices for meeting and phone customers. It also offers Zoom Rooms, a software-based conference room system; Zoom Conference Room Connector, a gateway for SIP/H.323 endpoints to join Zoom meetings; and Zoom Video Webinars enables users to conduct large-scale online events, such as town hall meetings, workshops, and marketing presentations. In addition, the company provides Zoom for Developers that allows developers to integrate its video, phone, chat, and content sharing into other applications, as well as manages Zoom accounts; and Zoom App Marketplace enhance developers to publish their apps. It serves education, entertainment/media, enterprise infrastructure, finance, government, healthcare, manufacturing, non-profit/not for profit and social impact, retail/consumer products, and software/Internet industries, as well as individuals. Zoom Video Communications, Inc. has partnership with ServiceNow. The company was formerly known as Zoom Communications, Inc. and changed its name to Zoom Video Communications, Inc. in May 2012. Zoom Video Communications, Inc. was founded in 2011 and is headquartered in San Jose, California.
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