How to buy Zoom shares | $247.25

Own Zoom shares in just a few minutes.

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Zoom Video Communications, Inc (ZM) is a leading telecom services business based in the US. It opened the day at $238.15 after a previous close of $236.72. During the day the price has varied from a low of $238.15 to a high of $250.06. The latest price was $247.25 (25 minute delay). Zoom is listed on the NASDAQ and employs 2,854 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.

How has Coronavirus impacted Zoom's share price?

Since the stock market crash in March caused by coronavirus, Zoom's share price has had significant positive movement.

Its last market close was $261, which is 61.01% up on its pre-crash value of $101.76 and 236.73% 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 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 $2,978.01.

Zoom share price

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

Zoom shares at a glance

Information last updated 2020-08-13.
Open$238.15
High$250.06
Low$238.15
Close$247.25
Previous close$236.72
Change $10.53
Change % 4.448%
Volume 4,749,728
Information last updated 2020-08-09.
52-week range$60.9675 - $281
50-day moving average $258.5285
200-day moving average $169.1824
Wall St. target price$226.96
PE ratio 1502.3887
Dividend yield N/A (0%)
Earnings per share (TTM) $0.169
Promoted
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Share dealing platform comparison

Table: sorted by promoted deals first
Data indicated here is updated regularly
Name Product Price per trade Frequent trader rate Platform fees Brand description
Fineco
£2.95
£2.95
Zero platform fee
Fineco Bank is good for share traders and investors looking for a complete platform and wide offer. Your first 50 trades are free with Fineco, until 30/09/2020. T&Cs apply. Capital at risk.
IG
0% commission on US shares, and £3 on UK shares
From £5
£0 - £24 per quarter
IG is good for experienced traders, and offers learning resources for beginners, all with wide access to shares, ETFs and funds. Capital at risk.
Hargreaves Lansdown Fund and Share Account
£11.95
£5.95
No fees
Hargreaves Lansdown is the UK's number one platform for private investors, with the depth of features you'd expect from an established platform. Capital at risk.
eToro Free Stocks
0% commission, no markup, no ticket fee, no management fee
N/A
Withdrawal fee & GDP to USD deposit conversion
eToro is good for social trading - letting you mirror the portfolios of other traders. Capital at risk. 0% commission but other fees may apply.
Interactive Investor
From £7.99 on the Investor Service Plan
From £7.99 on the Investor Service Plan
No transfer fees or exit fees. £9.99 a month on the Investor Service Plan
Capital at risk.
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Compare up to 4 providers

Data indicated here is updated regularly
Name Product Minimum deposit Maximum annual fee Price per trade Brand description
Hargreaves Lansdown stocks and shares ISA
£100
0.45%
£11.95
Hargreaves Lansdown is the UK's biggest wealth manager. It's got everything you'll need, from beginners to experienced investors. Capital at risk.
Interactive Investor stocks and shares ISA
£100 or £25 a month
£119.88
£7.99
Interactive Investor offers everything most investors need. Its flat fees makes it pricey for small portfolios, but cheap for big ones. Capital at risk.
Saxo Markets stocks and shares ISA
No minimum deposit requirement
0.12%
£8.00
Saxo Markets offers a wide access to a range of stocks, ETFs and funds. Capital at risk.
AJ Bell stocks and shares ISA
£500
0.25%
£9.95
AJ Bell is a good all-rounder for people who to choose between shares, funds, ISAs and pensions. Capital at risk.
Fidelity stocks and shares ISA
£1000 or a regular savings plan from £50
0.35%
£10.00
Fidelity is another good all-rounder, offering a good package at a decent price. Not suited for trading shares. Capital at risk.
Nutmeg stocks and shares ISA
£100
0.75%
£0
Nutmeg offers three types of portfolios. Choose the one that goes with your investment style. Capital at risk.
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Compare up to 4 providers

Data indicated here is updated regularly
Name Product Minimum investment Choose from Annual fee Brand description
PensionBee Pension
No minimum
7 funds
0.5% - 0.95%
Pension Bee is a newbie in the pension market. It helps consolidate your pension plans into one place. Capital at risk.
Hargreaves Lansdown Pension
£100
2,500 funds
0-0.45%
Hargreaves Lansdown is the UK's biggest wealth manager. It's got three different retirement options. Capital at risk.
Interactive Investor Pension
£25/month
Over 2,500 funds
£10/month
interactive investor is a flat-fee platform, which makes it cost effective for larger portfolios. Capital at risk.
Saxo Markets Pension
Saxo Markets Pension
£10
Over 11,000 funds
No annual fee
Saxo Markets gives flexibility and control over your investment strategy. Capital at risk.
AJ Bell Pension
£1,000
Over 2,000 funds
0.05-0.25%
AJ Bell has two different pension options, a self managed pension and one that is managed for you. Capital at risk.
Moneybox Pension
£1
3 funds
0.15% - 0.45% charged monthly
Manage your money with an easy-to-use Moneybox app. Capital at risk.
Moneyfarm Pension
Moneyfarm Pension
0.35%-0.75%
7 funds
£1,500 (initial investment)
Moneyfarm has pensions that are matched against your risk appetite, goals and planned retirement date. Capital at risk.
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Compare up to 4 providers

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. Capital is 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.

Zoom price performance over time

Historical closes compared with the last close of $247.25

1 week (2020-08-07) -4.44%
1 month (2020-07-14) -4.91%
3 months (2020-05-14) 47.25%
6 months (2020-02-14) 171.85%
1 year (2019-08-14) 166.86%
2 years (2018-08-10) N/A
3 years (2017-08-10) N/A
5 years (2015-08-10) N/A

Is Zoom under- or over-valued?

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

Zoom's 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 1502x. In other words, Zoom shares trade at around 1502x 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's PEG ratio

Zoom's "price/earnings-to-growth ratio" can be calculated by dividing its P/E ratio by its growth – to give 3.5984. 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'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's EBITDA

Zoom's EBITDA (earnings before interest, taxes, depreciation and amortisation) is $62.8 million (£48 million).

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

Zoom financials

Revenue TTM $828.8 million
Operating margin TTM 5.35%
Gross profit TTM $507.3 million
Return on assets TTM 1.81%
Return on equity TTM 6.19%
Profit margin 6.05%
Book value $3.197
Market capitalisation $73 billion

TTM: trailing 12 months

Shorting Zoom shares

There are currently 13.2 million Zoom shares held short by investors – that's known as Zoom's "short interest". This figure is 23.8% up from 10.6 million last month.

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

Zoom's "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 10.4 million). Zoom's SIR currently stands at 1.27. In other words for every 100,000 Zoom shares traded daily on the market, roughly 1270 shares are currently held short.

To gain some more context, you can compare Zoom's short interest ratio against those of similar companies.

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 0.0636% of the tradable shares (for every 100,000 tradable Zoom shares, roughly 64 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. However, you can browse other dividend-paying shares in our guide.

Zoom 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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