Earnings keep on surprising to the upside- Q3 earnings in 2020 soared by 367% to $777m.Here are three reasons to buy Zoom shares: However, the stock has hit the big time and its market capitalisation of around $120bn means that, in less than two years, it has gone from IPO to being a member of the Nasdaq 100 index. The fundamentals also point towards the firm expanding its operations - although whether that is already factored into the current Zoom share price valuation is the major question. The October 2020 peak has been followed by a pull-back, with the Zoom share price touching the 50% retracement level ($326) and then moving up to the 38.2% Fib support at $388. There are pointers from technical analysis that suggest the time to buy Zoom shares is now. Most notably, the platform expanded from being a mainly business-based service to one that tapped into the home consumer market as well. Zoom’s user-friendly functionality saw it become the video-conferencing choice of many. That’s a 16-fold return for day-one investors.ĭuring 2020, Zoom saw a staggering increase in user-numbers as lockdown measures related to the COVID-19 pandemic saw the world’s population turn to online communications. The stock is listed on the Nasdaq Exchange under ticker ZM and by October 2020, strong buying pressure took ZM shares as high as $588. Zoom didn’t turn a profit until 2019, the same year its shares were first made available to the public at an IPO price of $36. Zoom has kept ahead of rivals such as Microsoft (Teams) by being more user-friendly and having a design more compatible with how people want to meet online. The teleconferencing market Zoom targeted is, in tech terms, relatively well established, but the software the firm developed in 2013 is quite simply ground-breaking. Zoom was founded in 2011 and offers a range of video-conferencing, teleconferencing and online chat services.
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