ZM Stock Price Forecast. Should You Buy ZM?.4 Red Flags for Zoom Video Communications’ Future | The Motley Fool
ZOOM VIDEO COMMUNICATIONS INC Stock Forecast, Predictions & Price Target Add to Watchlist. Overview Forecast. Based on 21 analysts offering 12 month price targets for ZOOM VIDEO COMMUNICATIONS INC. Min Forecast. $%. Avg Forecast. $ +%. Max Forecast. $ +%. Should I buy or sell ZM stock? All Analysts Top . Aug 03, · Zoom Video Communications’s earnings per share have taken off like a rocket aimed right at the moon. The cherry on top is that insiders own a bucket-load of shares, and the CEO pay seems really. Apr 10, · Their forecasts range from $ to $ On average, they predict Zoom Video Communications’ stock price to reach $ in the next year. This suggests a possible upside of % from the stock’s current price. View analysts’ price targets for Zoom Video Communications or view top-rated stocks among Wall Street analysts/5.
– Zoom video communication stock forecast – none:
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Best predictor for any stock is listed at the stock pages. Zoom Video Communications ‘ ZM Those numbers dazzled the bulls, but the bears claim Zoom still has a narrow moat, that it’s struggling with security and privacy issues, and its stock is overvalued. Can Zoom overcome its growing pains and justify its premium valuation over the next five years?
Or will the stock fizzle out as stay-at-home measures end and more alternatives enter the market? Zoom was founded nine years ago, but it gained more mainstream attention after it went public last March and the COVID crisis lit a fire under its business.
Zoom struggled with numerous security issues over the past few months, but it’s trying to resolve those issues by hiring dozens of security consultants, using cybersecurity services from Crowdstrike , and DarkTower, and beefing up its infrastructure via a new cloud deal with Oracle.
Zoom’s resilience throughout the crisis could keep the bulls glued to the stock, and it could continue to grow with the broader video conferencing market — which Grand View Research expects to grow at a compound annual growth rate of 9. In other words, there could be plenty of room for Zoom and its rivals to grow without trampling each other.
The biggest issue with Zoom is its valuation. It currently trades at over times forward earnings and about 45 times this year’s revenue estimate. Those “cult stock” valuations are too high relative to Zoom’s growth, and could deflate if its growth decelerates, it loses users to rival platforms, or it stumbles over new security and privacy issues.
Zoom’s second major issue is trust. It falsely claimed its platform offered end-to-end encryption, which wasn’t true because its own employees could still access the video streams. It also quietly revised its “daily active user” count to “daily active participants,” since the former metric actually counted the same users multiple times. Those missteps raise troubling questions about the way Zoom markets itself to consumers and investors.
Zoom’s security flaws — which include routing streams through Chinese servers, failing to block attacks on video conferences, and phishing scams — have already tarnished its brand. Several countries — including the U. Big companies like Google and Space X have also ordered their employees to stop using Zoom. That list will inevitably grow longer if Zoom can’t fix its flaws. Looking further ahead, Zoom’s user growth could decelerate as the pandemic passes and its bigger rivals expand their competing platforms.
Zoom might seem like a safe haven in a scary market right now, but it’s overbought and overrated. Therefore, Zoom might rally higher in the short-term, but I don’t think it will significantly outperform its industry peers or the broader market by Instead, its bubble could pop and the stock’s valuations could cool off to more reasonable levels. If that happens, I might revisit this cult stock to see if it’s a worthy long-term investment.
Cost basis and return based on previous market day close.