![]() ![]() Two-year revenue estimates swell to $4.3 billion. Analysts expect another 38% growth in FY 2022 (next year) to $3.56 billion. Revenue is forecast to grow 315% this year to almost $2.6 billion. That’s exactly why analysts’ expect the business to continue humming along, with or without Covid-19 in the headlines. When a product makes business more efficient, companies want it. logging into Zoom and doing the exact same thing. Imagine having to go to the airport, fly to a different city or country, give a presentation or attend a meeting, get a hotel and various meals and then fly home. Zoom lets a company or group meet quickly, conveniently and more efficiently than an in-person meeting. Faster due to less travel time (be it to the conference room or across the country).Cheaper than in-person meetings, especially for traveling. ![]() That’s because it’s video conference platform is: However, it’s not hard to imagine why Zoom will sustain its business. Imagine how many masks people will be buying in a pandemic-free world. Those will see an immediate decline once Covid-19 is the rearview mirror. PPE manufacturers and other companies created new business lines for the pandemic. However, Zoom only needed the pandemic to fuel existing growth and a trend that was already in place. That’s particularly true because of the optics, which is that Zoom Video is up because of Covid-19.Ĭovid-19 did accelerate Zoom’s business and act as a major positive catalyst. Moving Forward With ZM StockĪfter such a big move in a short amount of time, ZM stock isn’t an easy one for investors. So earnings estimates have climbed 10-fold, while revenue estimates have increased about four-fold. Those estimates now sit at $2.58 billion and and $2.90 per share, respectively. Short of a pandemic, there was simply no other way for the company to realize so much demand so quickly.įor example, analysts were expecting about $610 million in sales and earnings of 27 cents per share this year. If bulls are lucky, that’s exactly what will happen, given them a better buying opportunity.īecause Covid-19 forced many meetings into the virtual space - be it for business or for family and friends - Zoom Video engulfed unheard of levels of growth. Although ZM stock has been pulling back, currently down 34.7% from those highs and flirting with a potential breakdown. Shares rallied more than 750% from the start of the year to the Oct. This stock simply went bonkers - and rightfully so. When the coronavirus came along, it’s as if someone waltzed up to a bonfire and doused it in gasoline. That was the case bulls were making as we entered 2020. But why should ZM stock come at a discount if it had all of these positives? The only thing not to like here was the valuation. #Zoom stock forecast today freeIt had (and still has) strong revenue and earnings growth, was profitable and free cash flow positive, and had a strong balance sheet. ![]() However, it checked all the boxes for growth investors. ![]()
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