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How to buy Zoom Video Communications stock in Canada | $559

Own Zoom Video Communications shares in just a few minutes.

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Zoom Video Communications, Inc is a telecom services business based in the US. Zoom Video Communications shares (ZM.US) are listed on the NASDAQ and all prices are listed in US Dollars. Its last market close was $559 – an increase of 13.52% over the previous week. Zoom Video Communications employs 3,427 staff and has a trailing 12-month revenue of around $2 billion.

How to buy shares in Zoom Video Communications

  1. Choose a platform. If you're a beginner, our share-dealing table below can help you choose.
  2. Open your account. You'll need your ID, bank details and national insurance number.
  3. Confirm your payment details. You'll need to fund your account with a bank transfer, debit card or credit card.
  4. Search the platform for stock code: ZM in this case.
  5. Research Zoom Video Communications shares. The platform should provide the latest information available.
  6. Buy your Zoom Video Communications shares. It's that simple.

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 $559, which is 81.80% up on its pre-crash value of $101.76 and 621.20% up on the lowest point reached during the March crash when the shares fell as low as $77.51.

If you had bought $1,000 worth of Zoom Video Communications shares at the start of February 2020, those shares would have been worth $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 $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 2020-12-01.
Latest market close $559
52-week range $62.02 - $588.84
50-day moving average $472.2874
200-day moving average $341.9681
Wall St. target price $474.85
PE ratio 319.7593
Dividend yield N/A (0%)
Earnings per share (TTM) $1.496

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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.

Zoom Video Communications price performance over time

Historical closes compared with the last close of $559

1 week (2020-11-27) 18.53%
1 month (2020-11-05) 12.54%
3 months (2020-09-04) 51.13%
6 months (2020-06-05) 169.27%
1 year (2019-12-05) 702.35%

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 320x. In other words, Zoom Video Communications shares trade at around 320x 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 2.1637. 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$438.5 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$2 billion
Operating margin TTM 21.17%
Gross profit TTM USD$507.3 million
Return on assets TTM 12.22%
Return on equity TTM 37.59%
Profit margin 21.82%
Book value $5.275
Market capitalisation USD$136.1 billion

TTM: trailing 12 months

How to short and sell Zoom Video Communications shares

  1. Create a CFD or spread betting account.
  2. Search for the stock code. E.g. "ZM.US"
  3. Choose your position size.
  4. Select "sell" rather than "buy".
  5. Confirm your position and keep tabs on it. You may wish to set limits on your position.

There are currently 9.4 million Zoom Video Communications shares held short by investors – that's known as Zoom Video Communications's "short interest". This figure is 2.1% down from 9.6 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 10.8 million). Zoom Video Communications's SIR currently stands at 0.87. In other words for every 100,000 Zoom Video Communications shares traded daily on the market, roughly 870 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 0.03% of the outstanding shares (for every 100,000 Zoom Video Communications shares in existence, roughly 30 shares are currently held short) or 0.0483% of the tradable shares (for every 100,000 tradable Zoom Video Communications shares, roughly 48 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. However, you can browse other dividend-paying shares in our guide.

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.

Frequently asked questions

Disclaimer: This information should not be interpreted as an endorsement of futures, stocks, ETFs, CFDs, options or any specific provider, service or offering. It should not be relied upon as investment advice or construed as providing recommendations of any kind. Futures, stocks, ETFs and options trading involves substantial risk of loss and therefore are not appropriate for all investors. Trading CFDs and forex on leverage comes with a higher risk of losing money rapidly. Past performance is not an indication of future results. Consider your own circumstances, and obtain your own advice, before making any trades.

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