Zoom Communications (ZM) Stock Price, News & Analysis

Company Overview

Zoom Video Communications, Inc. provides unified communications platform in the Americas, the Asia Pacific, Europe, the Middle East, and Africa. The company offers 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; and Zoom Chat enables users to share messages, images, audio files, and content in desktop, laptop, tablet, and mobile devices. It also provides Zoom Rooms, a software-based conference room system; Zoom Conference Room Connector, a gateway for SIP/H.323 endpoints to join Zoom meetings; Zoom Events, which enables users to manage and host internal and external virtual events; OnZoom, a prosumer-focused virtual event platform and marketplace for Zoom users to create, host, and monetize online events; and Zoom Webinars to provide video presentations to large audiences from many devices. In addition, the company offers Zoom Developer Platform that enables developers, platform integrators, service providers, and customers to build apps and integrations using Zoom's video-based communications solutions, as well as integrate Zoom's technology into their products and services; Zoom App Marketplace, which helps developers to publish their apps, as well as third-party integrations of Zoom; and Zoom Contact Center, an omnichannel contact center solution. It serves individuals; and education, entertainment/media, enterprise infrastructure, finance, government, healthcare, manufacturing, non-profit/not for profit and social impact, retail/consumer products, and software/Internet industries. The company was formerly known as Zoom Communications, Inc. and changed its name to Zoom Video Communications, Inc. in May 2012. The company was incorporated in 2011 and is headquartered in San Jose, California.

Key Stats

• Today's Range: $70.71 to $73.79
• 50-Day Range: $70.97 to $81.33
• 52-Week Range: $55.06 to $92.80
• Volume: 3.36 million shs
• Average Volume: 3.29 million shs
• Market Capitalization: $21.47 billion
• P/E Ratio: 21.31
• Dividend Yield: N/A
• Price Target: $87.00
• Consensus Rating: Hold

Zoom Communications Stock Analysis - MarketRank™

Zoom Communications scored higher than 91% of companies evaluated by MarketBeat, and ranked 82nd out of 659 stocks in the computer and technology sector. Scores are calculated by averaging available category scores, with extra weight given to analysis and valuation.

Analyst's Opinion

• Score: 3.2 / 5
• Analyst Rating: Hold

Consensus Rating

Zoom Communications has received a consensus rating of Hold. The company's average rating score is 2.38, and is based on 9 buy ratings, 15 hold ratings, and 1 sell rating.

Amount of Analyst Coverage

Zoom Communications has been the subject of 15 research reports in the past 90 days, demonstrating strong analyst interest in this stock.

Earnings and Valuation

• Score: 1.3 / 5
• Proj. Earnings Growth: -4.10%

Earnings Growth

Earnings for Zoom Communications are expected to decrease by -4.10% in the coming year, from $2.93 to $2.81 per share.

Price to Earnings Ratio vs. the Market

The P/E ratio of Zoom Communications is 21.31, which means that it is trading at a less expensive P/E ratio than the market average P/E ratio of about 28.09.

Price to Earnings Ratio vs. Sector

The P/E ratio of Zoom Communications is 21.31, which means that it is trading at a less expensive P/E ratio than the Computer and Technology sector average P/E ratio of about 48.09.

Price to Earnings Growth Ratio

Zoom Communications has a PEG Ratio of 12.13. PEG Ratios above 1 indicate that a company could be overvalued.

Price to Book Value per Share Ratio

Zoom Communications has a P/B Ratio of 2.42. P/B Ratios below 3 indicates that a company is reasonably valued with respect to its assets and liabilities.

Short Interest

• Score: 3.0 / 5
• Short Interest Level: Healthy

Percentage of Shares Shorted

2.36% of the outstanding shares of Zoom Communications have been sold short.

Short Interest Ratio / Days to Cover

Zoom Communications has a short interest ratio ("days to cover") of 2.6, which is generally considered an acceptable ratio of short interest to trading volume.

Change versus previous month

Short interest in Zoom Communications has recently increased by 76.30%, indicating that investor sentiment is decreasing significantly.

Dividend

• Score: 0.0 / 5
• Dividend Strength: N/A

Dividend Yield

Zoom Communications does not currently pay a dividend.

Dividend Growth

Zoom Communications does not have a long track record of dividend growth.

Sustainability and ESG

• Score: 3.8 / 5
• Environmental Score: -0.34

Percentage of Shares Shorted

2.36% of the outstanding shares of Zoom Communications have been sold short.

Short Interest Ratio / Days to Cover

Zoom Communications has a short interest ratio ("days to cover") of 2.6, which is generally considered an acceptable ratio of short interest to trading volume.

Change versus previous month

Short interest in Zoom Communications has recently increased by 76.30%, indicating that investor sentiment is decreasing significantly.

News and Social Media

• Score: 4.1 / 5
• News Sentiment: 1.30

News Sentiment

Zoom Communications has a news sentiment score of 1.30. This score is calculated as an average of sentiment of articles about the company over the last seven days and ranges from 2 (good news) to -2 (bad news). This is a higher news sentiment than the 0.68 average news sentiment score of Computer and Technology companies.

News Coverage This Week

MarketBeat has tracked 19 news articles for Zoom Communications this week, compared to 17 articles on an average week.

Search Interest

32 people have searched for ZM on MarketBeat in the last 30 days. This is an increase of 78% compared to the previous 30 days.

MarketBeat Follows

7 people have added Zoom Communications to their MarketBeat watchlist in the last 30 days. This is an increase of 133% compared to the previous 30 days.

Company Ownership

• Score: 3.3 / 5
• Insider Trading: Selling Shares

Insider Buying vs. Insider Selling

In the past three months, Zoom Communications insiders have sold more of their company's stock than they have bought. Specifically, they have bought $0.00 in company stock and sold $6,804,703.00 in company stock.

Percentage Held by Insiders

11.51% of the stock of Zoom Communications is held by insiders. A high percentage of insider ownership can be a sign of company health.

Percentage Held by Institutions

66.54% of the stock of Zoom Communications is held by institutions. High institutional ownership can be a signal of strong market trust in this company.

ZM Stock Analysis - Frequently Asked Questions

How have ZM shares performed this year?

Zoom Communications' stock was trading at $81.61 at the beginning of the year. Since then, ZM stock has decreased by 13.0% and is now trading at $70.97.

How were Zoom Communications' earnings last quarter?

Zoom Communications, Inc. (NASDAQ:ZM) released its quarterly earnings results on Wednesday, May, 21st. The company reported $1.43 earnings per share (EPS) for the quarter, beating the consensus estimate of $1.30 by $0.13. Zoom Communications's revenue was up 2.9% on a year-over-year basis.
Read the conference call transcript.

When did Zoom Communications IPO?

Zoom Communications (ZM) raised $627 million in an initial public offering on Thursday, April 18th 2019. The company issued 20,900,000 shares at a price of $28.00-$32.00 per share. Morgan Stanley, J. P. Morgan, Goldman Sachs and Credit Suisse acted as the underwriters for the IPO and BofA Merriil Lynch, RBC Capital Markets, Wells Fargo Securities, JMP Securities, KeyBanc Capital Markets, Piper Jaffray, Stifel and William Blair were co-managers.

Who are Zoom Communications' major shareholders?

Top institutional investors of Zoom Communications include Robeco Institutional Asset Management B.V. (0.71%), Allianz Asset Management GmbH (0.40%), Nordea Investment Management AB (0.29%) and Sumitomo Mitsui Trust Group Inc. (0.19%). Insiders that own company stock include Santiago Subotovsky, Kelly Steckelberg, Velchamy Sankarlingam, Herbert Raymond Mcmaster, Jonathan Chadwick, Shane Crehan, Janet Napolitano, Aparna Bawa and Eric S Yuan.
View institutional ownership trends.

How do I buy shares of Zoom Communications?

Shares of ZM stock can be purchased through any online brokerage account. Popular online brokerages with access to the U.S. stock market include Charles Schwab, E*TRADE, Fidelity, and Vanguard Brokerage Services.

What other stocks do shareholders of Zoom Communications own?

Based on aggregate information from My MarketBeat watchlists, some other companies that Zoom Communications investors own include NVIDIA (NVDA), Tesla (TSLA), Meta Platforms (META), Advanced Micro Devices (AMD), Netflix (NFLX), PayPal (PYPL) and Visa (V).

Company Calendar

• Last Earnings: 5/21/2025
• Today: 8/01/2025
• Next Earnings (Estimated): 8/20/2025
• Fiscal Year End: 1/31/2026

Industry, Sector and Symbol

• Stock Exchange: NASDAQ
• Sector: Computer and Technology
• Industry: INTERNET SOFTWARE
• Sub-Industry: Computer Software
• Current Symbol: NASDAQ:ZM
• CIK: 1585521
• Web: www.zoom.us
• Phone: (888) 799-9666
• Fax: N/A
• Employees: 7,412
• Year Founded: 2011

Price Target and Rating

• Average Price Target for Zoom Communications: $87.00
• High Price Target: $115.00
• Low Price Target: $71.00
• Potential Upside/Downside: +22.6%
• Consensus Rating: Hold
• Rating Score (0-4): 2.38
• Research Coverage: 26 Analysts

Profitability

• EPS (Trailing Twelve Months): $3.33
• Trailing P/E Ratio: 21.31
• Forward P/E Ratio: 24.22
• P/E Growth: 12.16
• Net Income: $1.01 billion
• Net Margins: 22.31%
• Pretax Margin: 28.50%
• Return on Equity: 11.08%
• Return on Assets: 9.00%

Debt

• Debt-to-Equity Ratio: N/A
• Current Ratio: 4.57
• Quick Ratio: 4.57

Sales & Book Value

• Annual Sales: $4.70 billion
• Price / Sales: 4.57
• Cash Flow: $4.11 per share
• Price / Cash Flow: 17.28
• Book Value: $29.27 per share
• Price / Book: 2.42

Miscellaneous

• Outstanding Shares: 302,548,000
• Free Float: 267,725,000
• Market Cap: $21.47 billion
• Optionable: Optionable
• Beta: 0.68