It just unveiled plans to meet new digital needs in today's fast-evolving work environment.Īmong the innovations is a more intricate event conferencing format and others.
Really, the company wants to innovate even further. We were only privileged to see the modest beginnings of Zoom in 2020. And that's not even mentioning where it could go by 2025 yet. Net income increased 70% year over year.Įarnings per share beat expectations at $1.16, and that was on revenue of $991.2 million.Īnalysts give Zoom stock a 12-month target of $425, which is nearly double what the stock trades for now. They're Ignoring Zoom's Latest Successesĭespite any market disappointment with Zoom stock, and despite many businesses reopening, Zoom produced a stellar earnings report for the quarter ended July 2021. There is simply no other candidate around to challenge Zoom for a piece of that pie, so Zoom will continue to be a total monster in the industry.įor even more proof of that this stock's slide is not backed by logic, look no further than the latest earnings report. And what name pops in your head when you first think of video conferencing, other than FaceTime? It's been measured at $6.28 billion in 2021. According to GM Insights, the Video Conferencing Market size is set to exceed $50 billion by 2026. That's because video conferencing demand is not as low as many would imagine, even without COVID-19. But even if the pandemic completely disappeared, this company would have a lot of juice behind it still. With new variants on the horizon and all, that does not spell the end of the pandemic or the end of Zoom. So, naturally, the market dragged the stock down. The market thought vaccine distribution would take the stock down. But if you bought in early 2020, you're still looking at more than double your money. On a graph, that might look like a disaster. Zoom shares have consistently been plummeting since the big 2020 gain. Despite this, it remains the go-to for video conferencing.Īfter the 2020 COVID-19 spike, however, Zoom stock began to fall.
#Zoom stock 5 year forecast software#
The software received a fair bit of criticism for security and privacy reasons - for instance, at one point, strangers were dropping in on calls without warning. It was right ahead of the coronavirus pandemic, when a dire need for Zoom software would emerge. Its introduction to the public markets could not have been more timely. An IPO followed in 2019, and it became one of the top 100 most-valuable companies on the NASDAQ. In 2017, the company achieved "unicorn" status - a more than $1 billion valuation. The goal was always to provide video and other chat services via cloud, for business and education purposes. Today, it's based in San Jose, Calif., having grown extremely fast since the start. Zoom was founded in 2011 by ex-Cisco Systems Inc. We'll start with an overview of the company to understand why it will continue to dominate. The real question is, will it ever be the end of Zoom? Or does Zoom control the remote conference market? Is it capable of entering other markets? That's all to say, if demand for video conferencing truly ever slows down (it probably won't), it will not be the end of remote work. Zoom is also set to come out with a VR conferencing feature in 2022. You even have Facebook testing virtual reality (VR) meetings with their employees. And companies are bending over backwards to meet that demand. Many employees have even reported that they would quit their jobs if forced to come into the office.Ĭlearly, we see strong demand for remote work driving tech stocks. The report also shows an 87% increase in remote work from pre-pandemic levels. Today, one in four Americans works from home, according to a report from Upwork. But the virus did help accelerate our path there. Why Zoom Stock Is Not Done YetĬOVID-19 or not, telework was already set to become more commonplace. That's fueling our Zoom stock forecast for 2025 and beyond. People tapped into it long after lockdowns peaked. Really, video communication only showed us a fraction of its potential that year. Well, the market could not be more wrong. Since the rise, Zoom has lost about 52%, now trading around $276. Somehow, the market thought this was only temporary. Between January and October 2020, Zoom stock soared from $66 to $559, a gain of 746%. (NYSE: ZM) may have been the most buyable stock of the year when the pandemic started. Save my name, email, and website in this browser for the next time I comment. Sign me up for the Money Morning newsletter
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