How to buy Zoom (ZM) shares in the UK

Own a slice of the company that won the pandemic.

Zoom Video Communications Inc
NASDAQ: ZM - USD
SOFTWARE-APPLICATION
$277.58
+ $2.80 ( + 1.02%)

Zoom Video Communications Inc (ZM) is a leading software-application business based in the US. In the week up to 19 October Zoom shares surged 8.18% to a closing position of $276.4. However, over the last 12 months, Zoom's share price has fallen by an alarming 45.73% from $511.52. Zoom is listed on the NASDAQ and employs 5,725 staff. All prices are listed in US Dollars.

How to buy shares in Zoom

  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 shares. The platform should provide the latest information available.
  6. Buy your Zoom shares. It's that simple.
The whole process can take as little as 15 minutes.

How has coronavirus impacted Zoom's share price?

Since the stock market crash that started in February 2020, Zoom's share price has had significant positive movement.

Its last market close was $277.58, which is 63.34% up on its pre-crash value of $101.76 and 258.12% up on the lowest point reached during the March 2020 crash when the shares fell as low as $77.51.

If you had bought $1,000 worth of Zoom 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 $3,167.19.

Zoom share price (NASDAQ:ZM)

Use our graph to track the performance of ZM stocks over time.

Zoom shares at a glance

Information last updated 2021-10-22.
Open$283.51
High$286.66
Low$276.12
Close$277.58
Previous close$274.78
Change$2.8
Change %1.019%
Volume3,175,619
Information last updated 2021-10-16.
52-week range$250.11 - $588.84
50-day moving average$279.4309
200-day moving average$329.3966
Wall St. target price$374.4
PE ratio80.3864
Dividend yieldN/A (0%)
Earnings per share (TTM)$3.313
Promoted
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Invest in Zoom shares with 0% commission

Other fees apply. Your capital is at risk.

  • Unlimited trades, with no dealing charges or management fees
  • Pay no stamp duty on UK shares (saving 0.5%)
  • Create an account today in a few minutes
Capital at risk

Fees for buying 5x Zoom shares with popular platforms

Both exchange rates and share prices fluctuate in real time, so the costs presented here should be considered as a guide only. They do not incorporate stamp duty. Always refer to the platform itself for availability and pricing – which may differ from our information.

Platform Platform fee Min. initial deposit Trading fee estimate
Freetrade logo £0 No minimum £4.54
£1,013.26 total
Capital at risk
eToro Free Stocks logo £0 $50 £5.04
£1,013.77 total
Capital at risk
Fineco logo £0 No minimum £10.09
£1,018.81 total
Capital at risk
Degiro Share Dealing logo £0 £0.01 £1.45
£1,010.17 total
Capital at risk
Stake logo £0 £50 £5.06
£1,013.78 total
Capital at risk
Hargreaves Lansdown Fund and Share Account logo £0 £1 £22.05
£1,030.78 total
Capital at risk
interactive investor Trading Account logo £9.99 per month No minimum £23.14
£1,031.86 total
Capital at risk
Halifax Share Dealing Account logo £36 per year £20 £22.12
£1,030.85 total
Capital at risk

Full comparison of share dealing platforms

All investing should be regarded as longer term. The value of your investments can go up and down, and you may get back less than you invest. Past performance is no guarantee of future results. If you’re not sure which investments are right for you, please seek out a financial adviser. Capital at risk.

Is it a good time to buy Zoom 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.

Is Zoom under- or over-valued?

Valuing a stock is incredibly difficult, and any metric has to be viewed as part of a bigger picture of overall performance. However, analysts commonly use some key metrics to help gauge value.

P/E ratio

Zoom's current share price divided by its per-share earnings (EPS) over a 12-month period gives a "trailing price/earnings ratio" of roughly 80x. In other words, Zoom shares trade at around 80x 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.

PEG ratio

Zoom's "price/earnings-to-growth ratio" can be calculated by dividing its P/E ratio by its growth – to give 2.6499. Higher PEG ratios such as this can be interpreted as meaning the shares offer worse value given the current rate of growth.

The PEG ratio provides a broader view than just the P/E ratio, as it gives more insight into Zoom's future profitability. By accounting for growth, it could also help you if you're comparing the share prices of multiple high-growth companies.

EBITDA

Zoom's EBITDA (earnings before interest, taxes, depreciation and amortisation) is a whopping $1.1 billion (£0.0 million).

The EBITDA is a measure of a Zoom's overall financial performance and is widely used to measure a its profitability.

Financials

Revenue TTM $3.6 billion
Operating margin TTM 28.76%
Gross profit TTM $1.8 billion
Return on assets TTM 14.32%
Return on equity TTM 34.28%
Profit margin 27.6%
Book value $15.681
Market capitalisation $79.1 billion

TTM: trailing 12 months

How to short and sell Zoom 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 11.0 million Zoom shares held short by investors – that's known as the "short interest". This figure is 11.2% down from 12.4 million last month.

There are a few different ways that this level of interest in shorting Zoom shares can be evaluated.

Short interest ratio (SIR)

Zoom's "short interest ratio" (SIR) is the quantity of Zoom shares currently shorted divided by the average quantity of Zoom shares traded daily (recently around 6.6 million). Zoom's SIR currently stands at 1.67. In other words for every 100,000 Zoom shares traded daily on the market, roughly 1670 shares are currently held short.

However Zoom's short interest can also be evaluated against the total number of Zoom shares, or, against the total number of tradable Zoom shares (the shares that aren't held by "insiders" or major long-term shareholders – also known as the "float"). In this case Zoom's short interest could be expressed as 0.04% of the outstanding shares (for every 100,000 Zoom shares in existence, roughly 40 shares are currently held short) or 0.0506% of the tradable shares (for every 100,000 tradable Zoom shares, roughly 51 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.

Find out more about how you can short Zoom stock.

Zoom share dividends

We're not expecting Zoom to pay a dividend over the next 12 months. Typically it's companies that have been around for longer that pay dividends (Zoom had its IPO on 18 April 2019). However, you can browse other dividend-paying shares in our guide.

Share price volatility

Over the last 12 months, Zoom's shares have ranged in value from as little as $250.11 up to $588.84. A popular way to gauge a stock's volatility is its "beta".

Beta is a measure of a share's volatility in relation to the market. The market (NASDAQ average) beta is 1, while Zoom's is -1.3258. This would suggest that Zoom's shares have been inversely-correlated to the average (for this exchange) – so when the broader market trended up or down, Zoom has bucked the trend.

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