How to buy Zoom (ZM) shares in the UK

Zoom Video Communications, Inc (ZM) is a leading telecom services business based in the US. It opened the day at $380.51 after a previous close of $386.02. During the day the price has varied from a low of $377.53 to a high of $391.9899. The latest price was $378.1 (25 minute delay). Zoom is listed on the NASDAQ and employs 5,059 staff. All prices are listed in US Dollars.

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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 $336, which is 69.71% up on its pre-crash value of $101.76 and 333.49% 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 $3,833.76.

Zoom share price (NASDAQ:ZM)

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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
	£0	$200	£6.80 £1,366.45 total	Go to site Capital at risk
	£0	No minimum	£6.12 £1,365.77 total	Go to site Capital at risk
	£0	£0.01	£1.80 £1,361.45 total	Go to site Capital at risk
	£0	£50	£6.81 £1,366.46 total	Go to site Capital at risk
	£0	£1	£25.56 £1,385.21 total	Go to site Capital at risk
	£9.99 per month	No minimum	£28.40 £1,388.05 total	Go to site Capital at risk
	£0	No minimum	£13.60 £1,373.24 total	Read review Capital at risk
	£36 per year	£20	£26.51 £1,386.16 total	Read review Capital at risk

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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 128x. In other words, Zoom shares trade at around 128x 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 4.3178. 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 $973.7 million (£0.0 million).

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

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 8.4 million Zoom shares held short by investors – that's known as the "short interest". This figure is 14.3% down from 9.8 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 2.6 million). Zoom's SIR currently stands at 3.3. In other words for every 100,000 Zoom shares traded daily on the market, roughly 3300 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 0.03% of the outstanding shares (for every 100,000 Zoom shares in existence, roughly 30 shares are currently held short) or 0.0394% of the tradable shares (for every 100,000 tradable Zoom shares, roughly 39 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 17 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 $230 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 -1.4751. 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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Frequently asked questions

• What percentage of Zoom is owned by insiders or institutions?

  Currently 14.306% of Zoom shares are held by insiders and 54.357% by institutions.

• How many people work for Zoom?

  Latest data suggests 5,059 work at Zoom.

• When does the fiscal year end for Zoom?

  Zoom's fiscal year ends in January.

• Where is Zoom based?

  Zoom's address is: 55 Almaden Boulevard, San Jose, CA, United States, 95113

• What is Zoom's ISIN number?

  Zoom's international securities identification number is: US98980L1017

• What is Zoom's CUSIP number?

  Zoom's Committee on Uniform Securities Identification Procedures number is: 98980L101