Zoom Video Communications, Inc. provides remote conferencing solutions. The platform is based on cloud technology.
The stock is traded on the Nasdaq exchange. Its market capitalization is $25.34 billion. According to this parameter, the issuer ranked 795th in the world as of November 30, 2024.
ZM does not pay dividends. Therefore, the asset is not suitable for generating passive earnings.
On 12/03/2024, the share value is expected to fall. The market is under the influence of negative macroeconomic factors. Investors recommend selling the stock.
Price Today — $83.11 USD.
Price at the end of Q4 of 2024 — $71-$99.
Price for next year 2025 — $180.
Long-term price 2025-2030 — $180-$211.
Capitalization growth is likely in the coming months. The average target for Zoom is 20% above the current one. The overall consensus among Wall Street analysts is to hold. However, technical analysis tools are giving a signal to sell.
The ZM rating is Buy and Strong Buy on older timeframes. But it is Strong sell on lower time frames. The stock is moving in a wide horizontal channel. All signs point to its preservation:
There are bullish and bearish patterns on different timeframes.
There were 5 red and 5 green days in the last 10 days.
The price is near a strong support line. The downtrend of recent days may be reversed.
In the event of a reversal, the resistance line could be the $85.64 level. A breach of these levels is a signal to buy. If the fall continues, then the next support line can be found at the level of $78.29.
The 12-month price rise is in excess of 20%. Most ZM asset projects for the next 5 years are bullish. But on a 5-year horizon, the average price target represents the $80-$90 level. The most optimistic scenario is an increase in capitalization of more than 2 times.
Proponents of this position point out that Zoom's strength is its good financial performance. First and foremost, annual earnings growth and a stable cash flow. The latter allows the corporation to invest in new developments and to acquire promising start-ups.
In addition, the services provided by Zoom have an advantage over the competition:
Easy to understand interface;
Paid and free features that make it easy to use applications;
Top perform platform.
The bears pay attention to the weaknesses of ZM. First of all, the insufficient level of information protection. The most pessimistic forecast is the loss of more than 70% of the capitalization by 2029.
The experts at the Motley Fool believe that the likelihood of such a decline is very low. At the same time, however, they cite weak diversification and limited development opportunities.
The positive expectations for ZM quotes are based on the expansion of the corporate segment. In 2023, earnings growth in this segment will be 8%. In 2024, if Zoom has success in its plans, this parameter will reach double digits. We can also hope for the stabilization of the online segment.
However, the forecasts are mostly moderate. And some analysts are even lowering their price targets. The reason is the slow development of the business.
Leading agency forecasts:
$70 — Wells Fargo;
$85 — Barclays;
$105 — Mizuho;
$115 — Evercore ISI Group.
Month |
Minimum expected price, $ |
Maximum expected price, $ |
Total change, % |
December |
71.64 |
99.42 |
21.7 |
In the last few years, the cost of Zoom has been in a sideways trend. Analysts expect that in 2025 the prices will leave the narrow corridor. However, forecasts about the direction of movement differ.
The bears' projection is a decline in value. Their argument is a weak business model. The bulls expect an expansion of services. They believe that ZM is poised to create video-based social networks. Another interesting direction is the addition of live translation scenarios.
Analyst price target for Zoom Video Communications 2025:
$36 — Coincodex;
$51-$71 — WalletInvestor;
$122.48 — CoinPriceForecast.
Month |
Minimum expected price, $ |
Maximum expected price, $ |
Total change, % |
January |
83.84 |
109.45 |
34.0 |
February |
92.63 |
108.75 |
33.2 |
March |
100.69 |
125.05 |
53.2 |
April |
108.14 |
126.94 |
55.5 |
May |
108.26 |
127.08 |
55.6 |
June |
109.56 |
128.62 |
57.5 |
July |
111.95 |
131.41 |
61.0 |
August |
121.68 |
143.69 |
76.0 |
September |
125.41 |
147.23 |
80.3 |
October |
128.30 |
150.62 |
84.5 |
November |
139.46 |
173.21 |
112 |
December |
152.78 |
179.34 |
120 |
Zoom's 2026 revenue could be 10% higher than 2024, according to Stock Analysis. EPS is expected to be in the range of $4.72-$6.24. In 2023, it was $2.07.
Such expectations make the stock's outlook favorable. The negative scenario is only maintained by one platform known for its bearish sentiment.
Price target at the end of 2026:
$17.22 — Coincodex;
$36-$57 — WalletInvestor;
$131.42 — CoinPriceForecast.
Month |
Minimum expected price, $ |
Maximum expected price, $ |
Total change, % |
January |
153.72 |
180.46 |
121 |
February |
154.35 |
181.19 |
122 |
March |
165.78 |
194.62 |
138 |
April |
160.62 |
188.56 |
131 |
May |
167.43 |
196.55 |
141 |
June |
171.80 |
201.68 |
147 |
July |
169.88 |
199.42 |
144 |
August |
176.18 |
206.82 |
153 |
September |
191.50 |
229.06 |
181 |
October |
189.73 |
222.73 |
173 |
November |
182.30 |
214.00 |
162 |
December |
195.07 |
228.99 |
181 |
In 2027, the Stock Analysis Platform expects financial performance to deteriorate compared to 2026. Nevertheless, some services predict stable growth.
The main argument for the bulls is that the corporation's prospects are undervalued. ZM is investing heavily in AI development. And the decision to focus on enterprise customers will help increase their loyalty.
Price to achieve in 2027:
$17 — Coincodex;
$22-$43 — WalletInvestor;
$75.02 — Stockraven;
$163.45 — CoinPriceForecast.
Month |
Minimum expected price, $ |
Maximum expected price, $ |
Total change, % |
January |
165.81 |
212.03 |
138 |
February |
180.23 |
214.39 |
163 |
March |
181.47 |
213.03 |
161 |
April |
197.25 |
244.99 |
200 |
May |
196.07 |
230.17 |
182 |
June |
195.21 |
229.17 |
181 |
July |
185.80 |
218.12 |
167 |
August |
169.61 |
201.96 |
144 |
September |
184.36 |
217.72 |
167 |
October |
167.26 |
201.59 |
141 |
November |
171.11 |
200.87 |
146 |
December |
185.99 |
231.00 |
183 |
According to the bulls, Zoom's strength is its aggressive cost-cutting strategy. This compensates for the slow revenue growth. The stock's buyback program could also provide a boost. In addition, analysts expect important product innovations.
At the same time, there are also negative revenue forecasts. Bears point to the fierce competition in the industry. They believe that Zoom will lose demand.
Targeted to end 2028:
$8-$28 — WalletInvestor;
$22 — Coincodex;
$81.25 — Stockraven;
$174.42 — CoinPriceForecast.
See the table below for the detailed forecast for each month.
Month |
Minimum expected price, $ |
Maximum expected price, $ |
Total change, % |
January |
168.89 |
213.89 |
143 |
February |
164.70 |
193.34 |
137 |
March |
162.01 |
190.19 |
133 |
April |
174.02 |
204.28 |
150 |
May |
168.60 |
197.92 |
142 |
June |
175.75 |
206.31 |
153 |
July |
180.34 |
211.70 |
159 |
August |
178.32 |
209.34 |
156 |
September |
184.94 |
217.10 |
166 |
October |
201.02 |
240.44 |
195 |
November |
199.15 |
233.79 |
186 |
December |
191.34 |
224.62 |
175 |
There are bullish and bearish long-term forecasts. The maximum variant assumes a 2.5-fold increase in assets. This result can be compared to the average historical return of the S&P 500 Index. ZM shares are not considered an attractive investment due to the lack of dividends.
The Bears believe that Zoom will cost less in 2050 than it does today. They believe that online conferencing technology will become obsolete. The meta-universe will make it unnecessary. It will be possible to see the interlocutor in 3D. The lowest projection for 2050 - $ 0.003694 per share.
In the maximum scenario, an investment in Zoom will return about 20% per year. But there are also pessimistic forecasts. According to them, the capitalization of ZM in 10 years will be lower than today. The pessimism is based on the competition with Microsoft, Salesforce and Adobe and the low diversification of the business.
The potential value of ZM shares in 10 years:
$37 — Stockscan;
$119 — Stockraven;
$252 — CoinPriceForecast.
Most forecasts for Zoom in 2030 are in the $100-$130 range. Companies promising steady but slow development. The basis for such expectations is management's cost-cutting policy and focus on corporate customers.
Target prices for 2030:
$4 — Coincodex;
$94— Stockraven;
$69-$131 — Stockscan;
$211 — CoinPriceForecast.
The lowest cost level is indicated by Coincodext. It is considered to be estimated too low by BeatMarket experts. They base it on extrapolation from previous years. But Zoom clicked in 2020 due to the pandemic. And fall after. There is no reason for such rapid growth and falling of the issuer without such shocks.
Zoom has 3 event scenarios for long term forecasting platforms:
$0.3 — Coincodex
$18.88 — Stockscan;
$157.23 — Stockraven.
BeatMarket analysts believe that ZM will be able to maintain its position in the market. Implementing AI will make its services competitive and sought after. However, from a risk/reward perspective, this investment does not look optimal even in a bullish forecast.
All scenarios for 2050 are also unfavorable for Zoom. Even the bullish $213 target implies moderate returns. Unlike some of its peers, ZM doesn't promise explosive growth. There are stocks with higher potential for an investor interested in cloud technology.
Zoom's 2050 target:
$41.19 — Stockscan;
$213 — Stockraven.
Coincodex believes that in 2050 ZM’s price will be less than $0.01.
Zoom Video Communications was founded in 2011. They went public in 2019. Its key product is video conferencing and content sharing software. It provides users with interaction using any device.
The main source of earnings is the monthly subscription fee. Several subscription plans are available. Each offers certain advantages over free use of the services.
Zoom operates in the B2B and B2C Industries. The company was one of the beneficiaries of the Covid-19 pandemic. However, after the restrictions were lifted, the capitalization returned to its previous level.
Top weaknesses:
Profits from only one business;
Requirement to install an application (competitors support browser connection);
Data security issues.
Major competitors include Google Meet, Cisco Webex, and Skype.
2020
As demand for online services exploded, Zoom's capitalization soared. The stock hit an all-time high. It peaked at over $530.
2021
As the restrictions were lifted, the popularity of the online platforms and ZM's profits fell. The bearish trend continued in the second half of the year.
2022
The cost reached pre-pandemic levels. Since then, it has remained in a wide corridor.
Investor interest is directly related to the potential market. If the demand for the proposed product decreases, the capitalization will also decrease.
Loss of competition will have a negative impact on capitalization. Value reductions are possible when new services are introduced. And also when other market players offer more attractive terms.
Capitalization is affected by macroeconomic factors. For example, Federal Reserve interest rates, industry development rates. The market is influenced by the geopolitical situation, the stage of the economic cycle, etc.
According to investing.com, Zoom has a consensus analyst price rating of Hold. As of November 30, 2024, 19 analysts have a "hold" rating on the stock. Another 12 analysts have a buy stocks recommendation and 2 have a sell recommendation.
Targets for 2025 in various sources range from $36 to $179.
Zoom's expected 10- to 25-year average investment return is in line with the S&P 500 Index. This is the most optimistic analyst forecast.
Using the P. Lynch formula, Zoom looks like an undervalued company. According to valueinvesting.io, the fair value of the stock is $71.1. The current price is below this value. The discounted cash flow method gives a valuation of $70.25.
Zoom's period of explosive growth is over. The company continues to expand in the post-pandemic market. But its performance is growing slowly. Wall Street analysts recommend that investors look to other technology companies for growth.
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