Latest news with #ZoomCommunications
Yahoo
4 days ago
- Business
- Yahoo
Why Zoom Communications (ZM) Outpaced the Stock Market Today
Zoom Communications (ZM) closed the most recent trading day at $78.38, moving +1.85% from the previous trading session. This move outpaced the S&P 500's daily gain of 0.52%. Meanwhile, the Dow gained 1%, and the Nasdaq, a tech-heavy index, added 0.52%. Coming into today, shares of the video-conferencing company had lost 3.73% in the past month. In that same time, the Computer and Technology sector gained 9.55%, while the S&P 500 gained 5.95%. The investment community will be closely monitoring the performance of Zoom Communications in its forthcoming earnings report. The company is forecasted to report an EPS of $1.37, showcasing a 1.44% downward movement from the corresponding quarter of the prior year. In the meantime, our current consensus estimate forecasts the revenue to be $1.2 billion, indicating a 3.02% growth compared to the corresponding quarter of the prior year. Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $5.59 per share and revenue of $4.81 billion. These totals would mark changes of +0.9% and +2.99%, respectively, from last year. Investors should also note any recent changes to analyst estimates for Zoom Communications. These revisions typically reflect the latest short-term business trends, which can change frequently. With this in mind, we can consider positive estimate revisions a sign of optimism about the business outlook. Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical rating system. Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. The Zacks Consensus EPS estimate has moved 0.99% higher within the past month. Currently, Zoom Communications is carrying a Zacks Rank of #2 (Buy). Digging into valuation, Zoom Communications currently has a Forward P/E ratio of 13.78. This represents a discount compared to its industry average Forward P/E of 28.26. Meanwhile, ZM's PEG ratio is currently 7.39. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. The average PEG ratio for the Internet - Software industry stood at 2.23 at the close of the market yesterday. The Internet - Software industry is part of the Computer and Technology sector. With its current Zacks Industry Rank of 48, this industry ranks in the top 20% of all industries, numbering over 250. The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1. Keep in mind to rely on to watch all these stock-impacting metrics, and more, in the succeeding trading sessions. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Zoom Communications, Inc. (ZM) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research Sign in to access your portfolio
Yahoo
17-06-2025
- Business
- Yahoo
Zoom Video Communications Stock Has More Than Doubled the Performance of the S&P 500 Over the Last Year. Is It the Beginning of a Long-Term Comeback?
Some investors mistakenly believe that Zoom has completely fallen out of favor, but its revenue is still reaching new highs thanks to a strong enterprise customer base. Zoom needs to better grow its revenue and use its profits to create more shareholder value but the prospects of this happening soon are cloudy. 10 stocks we like better than Zoom Communications › If you bought shares of communications platform Zoom Video Communications (NASDAQ: ZM) in 2020, I'm sorry for your poor returns. The stock is down a whopping 86% from the heights it reached in the early days of the COVID-19 pandemic. That said, if you bought shares of Zoom a year ago, congratulations: You've more than doubled the performance of the S&P 500. As of this writing, Zoom stock is up a nice 27% over the last year, compared to just an 11% return for the market. Some might say I've cherry-picked the timeframe, and perhaps I have. That said, outperforming the S&P 500 over one whole year is noteworthy for Zoom stock after years of underperformance. For that reason, I think it's important to investigate whether this could be the start of a long-term comeback. Zoom is known for its video-conferencing platform. One might think that nobody uses it now that the pandemic is over, but that's far from the truth. The company's revenue is at an all-time high, boosted by ongoing use from enterprise customers. In fact, in its fiscal first quarter of 2026 (the most recent quarter), it had nearly 4,200 customers spending $100,000 or more annually, which was an 8% year-over-year increase. Keep in mind that Zoom is far more than just its well-known video platform. The company has a growing contact center business, among other things. And it's done a good job of adding new features enhanced with artificial intelligence (AI). These are sensible features, such as AI meeting transcription, and have helped keep it relevant well beyond the pandemic. But here's the problem with Zoom: It's simply not growing enough these days to make a difference for shareholders. At least it is growing -- not all companies are. But Zoom's Q1 revenue was only up 3% year over year. And for its entire fiscal 2026, management only expects 3% top-line growth as well. In fact, single-digit growth has been all too common for Zoom over the last three years, as the chart below shows. When it comes to creating meaningful shareholder value, companies usually need more than low single-digit growth. Zoom simply hasn't had enough revenue growth, and nothing appears to be materially improving its outlook. Of course, companies can create value in other ways. Specifically, if profit margins dramatically improved, then perhaps Zoom stock would still perform well even with modest growth. The good news is that Zoom's operating margin has improved. In Q1, the company's operating margin was nearly 21%. For perspective, that's higher than it was in the first quarter of the last three fiscal years. That said, Zoom hasn't really done much with its higher profits. In reality, its balance sheet just keeps improving. It has nearly $8 billion in cash compared with less than $6 billion just a few years ago. It also has no debt. Therefore, it's making money, but it's just sitting there. Some might object and point out that Zoom has been buying back stock like crazy. On the one hand, this is true. According to management, it's spent $1.4 billion on buybacks in just the last 12 months. Buybacks are Zoom's primary way of returning capital to shareholders and creating value. But here's the problem: Because of its generous use of stock-based compensation, Zoom's share count is still near an all-time high. In other words, buybacks aren't creating value because the share count isn't going down. Looking at Zoom from multiple angles, I believe the stock will struggle -- I don't believe it will sustain its outperformance over the past year. Its growth is too modest, and its prospects don't point to a dramatic improvement anytime soon. Its profitability is good, but management is mostly just buying back stock to offset dilution from its stock-based compensation. I say all of this as a patient shareholder -- there are many things that I like about Zoom. But if I'm looking at it realistically today, I don't think it's a compelling investment opportunity. Indeed, I may look to move on from this investment in the near future so I can put that money to better use elsewhere in the stock market. Before you buy stock in Zoom Communications, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and Zoom Communications wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $653,702!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $870,207!* Now, it's worth noting Stock Advisor's total average return is 988% — a market-crushing outperformance compared to 172% for the S&P 500. Don't miss out on the latest top 10 list, available when you join . See the 10 stocks » *Stock Advisor returns as of June 9, 2025 Jon Quast has positions in Zoom Communications. The Motley Fool has positions in and recommends Zoom Communications. The Motley Fool has a disclosure policy. Zoom Video Communications Stock Has More Than Doubled the Performance of the S&P 500 Over the Last Year. Is It the Beginning of a Long-Term Comeback? was originally published by The Motley Fool Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Time of India
12-06-2025
- Business
- Time of India
Zoom adopts collaborative AI approach for intelligent user experiences, says India head
NEW DELHI: Zoom Communications has adopted a collaborative AI approach to deliver flexible and intelligent experiences to its customers, according to a senior company executive. 'We have adopted a unique federated AI approach. Zoom AI Companion leverages our proprietary LLMs alongside trusted industry models like those from OpenAI and Anthropic. What sets us apart is the openness — customers can even bring their own AI models, within certain technical boundaries. With our new custom AI feature, we now enable orchestration across multiple AI agents, addressing diverse needs with agility and scale,' Sameer Raje , general manager & head (India & SAARC Region), Zoom Communications, told ETTelecom in an interview. 'AI is going to simplify our lives and probably not going to take away our jobs or take away the creativity of the human element. But it's going to — at least in the near future or in the interim — make our lives much better and simpler,' he said. The company on Wednesday announced the launch of Zoom Contact Center in India, an AI-first, omnichannel contact center-as-a-service solution (CCaaS) optimised for video. The contact center will support various channels, including voice, video, virtual agents, social media, email and messaging apps. AI is transforming the future of customer engagement and Zoom Contact Center is at the forefront of that shift. 'With intelligent self-service, predictive analytics and auto-summarisation, AI is driving greater efficiency, enhancing agent productivity and elevating customer satisfaction. Customers move effortlessly across channels without needing to repeat themselves, thanks to complete interaction visibility for agents,' Raje said. According to him, this results in a unified, intelligent workflow that delivers a holistic experience, seamlessly connecting people, processes, and data beyond the traditional contact center to empower agents and drive collaboration across the organisation. Zoom's bring your own carrier (BYOC) capabilities will allow businesses to retain their existing public switched telephone network (PSTN) service provider while routing voice traffic through the Zoom contact center cloud. The company also announced expansion of Zoom Phone service to four major metro telecom circles in India — Mumbai, Delhi NCR, Karnataka (Bengaluru) and Andhra Pradesh & Telangana (Hyderabad), after securing necessary license from the Department of Telecommunications (DoT). This service is already available in the Maharashtra and Tamil Nadu (Chennai) circles. The US-listed cloud communication solutions provide plans to bring Zoom Phone to additional telecom circles across India, accelerating its commitment to make AI-first modern telephony available to more organisations.
Yahoo
11-06-2025
- Business
- Yahoo
Zoom Communications, Inc. (ZM) is Attracting Investor Attention: Here is What You Should Know
Zoom Communications (ZM) has recently been on list of the most searched stocks. Therefore, you might want to consider some of the key factors that could influence the stock's performance in the near future. Over the past month, shares of this video-conferencing company have returned -4.5%, compared to the Zacks S&P 500 composite's +6.9% change. During this period, the Zacks Internet - Software industry, which Zoom falls in, has gained 14.2%. The key question now is: What could be the stock's future direction? While media releases or rumors about a substantial change in a company's business prospects usually make its stock 'trending' and lead to an immediate price change, there are always some fundamental facts that eventually dominate the buy-and-hold decision-making. Here at Zacks, we prioritize appraising the change in the projection of a company's future earnings over anything else. That's because we believe the present value of its future stream of earnings is what determines the fair value for its stock. Our analysis is essentially based on how sell-side analysts covering the stock are revising their earnings estimates to take the latest business trends into account. When earnings estimates for a company go up, the fair value for its stock goes up as well. And when a stock's fair value is higher than its current market price, investors tend to buy the stock, resulting in its price moving upward. Because of this, empirical studies indicate a strong correlation between trends in earnings estimate revisions and short-term stock price movements. For the current quarter, Zoom is expected to post earnings of $1.37 per share, indicating a change of -1.4% from the year-ago quarter. The Zacks Consensus Estimate has changed +5.1% over the last 30 days. The consensus earnings estimate of $5.57 for the current fiscal year indicates a year-over-year change of +0.5%. This estimate has changed +8% over the last 30 days. For the next fiscal year, the consensus earnings estimate of $5.61 indicates a change of +0.6% from what Zoom is expected to report a year ago. Over the past month, the estimate has changed +2.7%. With an impressive externally audited track record, our proprietary stock rating tool -- the Zacks Rank -- is a more conclusive indicator of a stock's near-term price performance, as it effectively harnesses the power of earnings estimate revisions. The size of the recent change in the consensus estimate, along with three other factors related to earnings estimates, has resulted in a Zacks Rank #2 (Buy) for Zoom. The chart below shows the evolution of the company's forward 12-month consensus EPS estimate: While earnings growth is arguably the most superior indicator of a company's financial health, nothing happens as such if a business isn't able to grow its revenues. After all, it's nearly impossible for a company to increase its earnings for an extended period without increasing its revenues. So, it's important to know a company's potential revenue growth. In the case of Zoom, the consensus sales estimate of $1.2 billion for the current quarter points to a year-over-year change of +3%. The $4.8 billion and $4.96 billion estimates for the current and next fiscal years indicate changes of +3% and +3.2%, respectively. Zoom reported revenues of $1.17 billion in the last reported quarter, representing a year-over-year change of +2.9%. EPS of $1.43 for the same period compares with $1.35 a year ago. Compared to the Zacks Consensus Estimate of $1.16 billion, the reported revenues represent a surprise of +0.89%. The EPS surprise was +10%. The company beat consensus EPS estimates in each of the trailing four quarters. The company topped consensus revenue estimates each time over this period. Without considering a stock's valuation, no investment decision can be efficient. In predicting a stock's future price performance, it's crucial to determine whether its current price correctly reflects the intrinsic value of the underlying business and the company's growth prospects. While comparing the current values of a company's valuation multiples, such as price-to-earnings (P/E), price-to-sales (P/S), and price-to-cash flow (P/CF), with its own historical values helps determine whether its stock is fairly valued, overvalued, or undervalued, comparing the company relative to its peers on these parameters gives a good sense of the reasonability of the stock's price. The Zacks Value Style Score (part of the Zacks Style Scores system), which pays close attention to both traditional and unconventional valuation metrics to grade stocks from A to F (an A is better than a B; a B is better than a C; and so on), is pretty helpful in identifying whether a stock is overvalued, rightly valued, or temporarily undervalued. Zoom is graded C on this front, indicating that it is trading at par with its peers. Click here to see the values of some of the valuation metrics that have driven this grade. The facts discussed here and much other information on might help determine whether or not it's worthwhile paying attention to the market buzz about Zoom. However, its Zacks Rank #2 does suggest that it may outperform the broader market in the near term. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Zoom Communications, Inc. (ZM) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research Sign in to access your portfolio
Associated Press
11-06-2025
- Business
- Associated Press
Zoom completes rollout of Zoom Phone in six telecom circles, with plans for further expansion in India
SAN JOSE, Calif., June 11, 2025 (GLOBE NEWSWIRE) -- Zoom Communications, Inc. (NASDAQ: ZM) today announced the further expansion of its industry-leading Zoom Phone service to four major metro telecom circles in India — Mumbai, Delhi NCR, Karnataka (Bengaluru), and Andhra Pradesh & Telangana (Hyderabad). The Delhi NCR Telecom Circle includes the Union Territory of Delhi, Ghaziabad, Faridabad, NOIDA, and Gurgaon. Licensed by the Department of Telecommunications (DoT) India, Zoom Phone is now available in six telecom circles in India, including Maharashtra (October 2024) and Tamil Nadu (Chennai) Telecom Circles (February 2025), thereby covering key business and technology hubs in the country. Zoom also plans to bring Zoom Phone to additional telecom circles across India, accelerating its commitment to make AI-first modern telephony available to more organizations across key states in India. 'Zoom Phone addresses the growing demand for cloud telephony by offering simplicity and modern functionality for distributed workforces. India is an important market for us, and our expansion plans beyond the six key telecom circles demonstrate our commitment to providing customers with a unified work platform. This expansion also reflects the growing traction Zoom Phone is receiving, especially from multinational companies, as businesses in India move away from legacy PBX systems toward more flexible, AI-first collaboration solutions that enhance employee productivity,' said Velchamy Sankarlingam, president of Product and Engineering, Zoom. Zoom Phone offers businesses simplicity and modern functionality, empowering dynamic workstyles and hybrid teams. Available as an add-on for existing paid Zoom customers, it supports inbound and outbound calling through the Public Switched Telephone Network (PSTN), enabling enterprises to replace legacy private branch exchange (PBX) systems and consolidate communication needs onto a single AI-first platform in Zoom Workplace. Zoom Phone also integrates seamlessly with Zoom Contact Center to offer a unified experience with features like call transfer, call forwarding, and call recording accessible within the Zoom Contact Center environment. Zoom Contact Center can access Zoom Phone user details like extensions, Direct Inward Dialing (DID) numbers, and usernames, enabling caller identification and routing. In addition to services in the six active telecom circles, Zoom Phone enables businesses to maintain seamless collaboration across India, even in regions where Zoom Phone service is not yet available. Through Zoom's self-service web portal, customers can acquire native phone numbers based on specific telecom circles, such as Karnataka, Delhi NCR, and Mumbai, enabling them to establish a local presence in those regions. These native numbers operate over the PSTN, allowing customers to place outbound calls and receive inbound calls nationwide, regardless of their physical location. This allows organizations to maintain continuity and flexibility in their collaboration strategy, even in telecom circles where Zoom Phone is not directly available. Enhanced by Zoom AI Companion, which is included at no additional cost with eligible Zoom paid accounts, Zoom Phone offers powerful AI features to boost productivity. These include post-call summaries so users can focus on conversations instead of taking notes, voicemail task extraction to easily identify next steps, and voicemail prioritization to better manage time and attention. Zoom Phone also integrates seamlessly with Zoom Workplace, leading business applications, and hardware providers, offering robust security, scalability, and an intuitive user interface. 'We are thrilled that Zoom Phone is now available in six of India's most prominent business and technology hubs. Each of these cities is home to thriving ecosystems of local enterprises and multinational corporations that will benefit from Zoom Phone's flexibility and seamless integration into their existing workflows. Bringing Zoom Phone to additional telecom circles is a natural next step in our commitment to empower more organizations with access to reliable, modern AI-first telephony,' said Sameer Raje, general manager and head of India & SAARC region at Zoom. 'Zoom Phone and Zoom Contact Center are purpose-built to work seamlessly together to empower organizations to deliver unified communications and superior customer and employee engagement. With this launch, we are excited to help businesses streamline collaboration, support flexible workforces, and enhance employee and customer experiences.' To learn more about Zoom Phone, please visit the Zoom Phone page. About Zoom Zoom's mission is to provide an AI-first work platform for human connection. Reimagine teamwork with Zoom Workplace — Zoom's open collaboration platform with AI Companion that empowers teams to be more productive. Together with Zoom Workplace, Zoom's Business Services for sales, marketing, and customer experience teams, including Zoom Contact Center, strengthen customer relationships throughout the customer lifecycle. Founded in 2011, Zoom is publicly traded (NASDAQ:ZM) and headquartered in San Jose, California. Get more information at Zoom Press Contact Hayley Yap APAC Communications Lead [email protected]
