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  • Zoom Video Communications Inc. (ZM) Faces Another Price Cut Down Amid Growing Competition and Lagging Outlook

    The pandemic-darling video conferencing software company Zoom Video Communications Inc. (ZM) has been on the fall since its 2020 peak of $588 a share. Down over 86% below its all-time high, the stock is struggling to find ground with 12 months’ losses extending over 72%. Since the high rise demand for remote communications, work-from-home, and distance learning is now waning as offices and schools continue to reopen and economies face persistent blows, ZM continues to plunge further as concerns grow.

    While 2022 brought about the downfall of all major indices and most equities during the geopolitical and economic turmoil, amid the wider tech sell-off, computer applications and software stocks have seen deeper losses. The iShares Expanded Tech-Software Sector ETF is down over 38% from its November peak against the Nasdaq 100 Index’s fall of 24%.

    On May 18, ZM once again surpassed the Nasdaq composite’s fall of over 4% with a decline of nearly 7% in regular trading. Continuing the streak in the after-hours, the stock reached a price of $84.30 per share in the session. However, this blow came from a price cut down of the stock stemming from worrying results of a survey regarding the company and its competitors. Further escalating the fear to Zoom’s investors, the price target cut brought about a sell-off on Wednesday.

    The Survey & Price Target Cut

    Source: Market Realist

    Early on Wednesday, Karl Keirstead, a UBS analyst and prognosticator had the price target of ZM cut down from $130 a share to $100, while maintaining a neutral recommendation. This price target cut stemmed from a survey of roughly 400 IT decision-makers using Zoom, conducted by his company.

    According to the results of the survey, 60% had plans to increase their spending on such services by 5% or a little less while 85% anticipated growth to fall below 15%. What came as a further concern was the response of 92% who said to be pondering over the consolidation of their video conferencing services. Most of the people surveyed showed a larger tendency toward Microsoft’s Team suite of workplace collaboration tools. Thus, the results raised numerous concerns for Zoom including not-so-favorable spending from customers, and increasing competition with new and existing giant names like Microsoft.

    A Detailed Picture of ZM

    Let’s have a look at the stock and company performance that has been somewhat lagging since the pandemic hype went down.

    ZM’s Overview

    The video conferencing software company has continued to add more value to its solutions with a wider shift towards enterprise and the addition of Zoom Phone which might just be a potential market disruptor.

    Recently, the company launched Zoom Whiteboard which allows collaboration and creation for employees in disparate locations. With the continuous addition of new features and solutions, the company has also been active in acquisitions. Earlier this month, ZM announced the acquisition of a conversational artificial intelligence and automation platform for customer support, Solvvy. This will help the company deliver a more personalized and expedited customer experience on top of expanding its recently launched Zoom Contact Center platform. The omnichannel contact center platform in a single user-friendly experience optimizes video, voice, SMS, and webchats.

    In addition, its Zoom Phone which allows customers to set up internet phone calls without video has also been very popular, replacing the traditional business PBX phone systems. Added to this is another plus for the company’s solutions being user-friendly and its easy management that doesn’t require tech experts.

    Fundamental Analysis

    At the end of February 2022, the company declared its financial results for the quarter, and the year ended on January 31, 2022 (fiscal 2022). While the results beat on most key factors, the relatively bleak outlook with lagging growth did put off many.

    Coming above the expected were earnings per share of $1.29 which rose by 5.7% YOY while analysts expected it to decline by 12.6% to $1.06.

    Revenue jumped up by 21% to $1.071 billion while analysts were predicting $1.053 billion, however, the revenue growth was the slowest in a minimum of 15 quarters at least.

    On the beat, the side was also customers contributing over $100K in trailing-12-month revenue at 2,725, against the expected 2,701.

    ZM’s Outlook

    Despite the beat earnings, the company forecasted earnings of $3.48 a share on revenue of $4.54 billion for fiscal 2023 (at mid-point). On the other hand, analysts were forecasting earnings of $4.36 per share on revenue of $4.71 billion for the year.

    Falling below estimates was also the Q1, fiscal 2023, revenue growth at 11% against the expected 15%. The company will be posting the Q1, earnings on May 23, 2022, after the market close.

    Pandemic Play or Here to Stay

    The outbreak of Covid-19 brought about a universal shift to work-from-home, remote working opportunities, and distance learning. All of these boosted the demand for remote communications services like that offered by Zoom and hence it became the poster picture of the pandemic. This not only caused a huge uptick in the stock but also the company’s performance and results. However, with the pandemic now on the declining side, economies are opening with work now in-office again and learning in person. With face-to-face meetings resuming, the hyped-up demand for video conferencing and the likes are also waning. However, video conferencing and remote working/learning is not going anywhere. While the initial peaked hype might have died down but the demand for such services will continue as the pandemic opened new doors and opportunities in this regard.

    Growing Competition

    Many of the rivals of ZM includes RingCentral, Cisco Systems, LongMeln, and Fuze, but the real threat comes from Microsoft while Alphabet is also rising in the competition. Microsoft looms a bigger threat with its Teams collaboration tools which are gaining popularity day the day. The giant adding to its portfolio recently rolled out a low-priced, standalone product called Teams Essentials which targets small businesses. Another top growing rival is Google’s parent Alphabet.

    Conclusion

    While the pandemic hype surrounding video conferencing and remote communications has calmed down, competition is surging every day passes as the market remains on a bullish road. But amid the rising competition and comparatively waned-off demand, ZM is facing challenges to keep up although it continues to grow at a steady pace while adding and acquiring more to its business. In such growing competition, customer retention will most likely remain the key to dominance, hence, if ZM manages to do that, it just might become a darling once again.

  • Zoom Video Communications, Inc. (ZM) Stock in Decline Despite Robust Quarterly Results

    Zoom Video Communications, Inc. (ZM) Stock in Decline Despite Robust Quarterly Results

    Zoom Video Communications, Inc. (ZM), a company providing a video-first communications platform, has declined 6.80% in aftermarket trading session. Consequently, ZM stock is trading at $225.80 at the time of the writing. On Monday, ZM closed the day at $242.28 after declining 3.59% during regular trading hours. The company has faced a consistent decline despite the release of outstanding quarterly results.

    ZM Q3 2021 Financial Highlights

    On Monday, ZM released the financial results for the third quarter of the fiscal year 2021. The quarter ended on 30th September 2021. The company had cash and cash equivalents of $1.32 billion on 30th September 2021. The total revenue generated by the company during the period was $1.05 billion against $777.19 million for the same period of 2020. The total operating expenses for the period were $488.94 million against $326.22 million for the same period of 2020. The net income generated by the company during the period was $340.38 million against $198.64 million for the same period of 2020. The net income per basic and diluted share for the period was $1.14 and $1.11 respectively against $0.70 and $0.66 for the same three-month period of 2020.

    Financial Outlook

    Alongside the financial results, ZM also reported the financial outlook for the upcoming quarter and complete fiscal 2021. The company believed that the total revenue for the fourth quarter of 2021 would stand between $1.051 and $1.053 billion. The non-GAAP income from the operations was expected in the range of $361 million and $363 million. The non-GAAP diluted EPS was estimated to stand between $1.06 and $1.07. For the full fiscal year 2021, the total revenue was expected to range between $4.079 billion to $4.081 billion. The non-GAAP income from operations was expected to lie between $1.598 billion and $1.600 billion. The non-GAAP diluted EPS was expected to range between $4.84 and $4.85.

    Executive Commentary

    ZM founder and CEO, Eric S. Yuan, while commenting on the results said that the company has continued and would continue to deliver happiness to its customers through innovation and dedication. He further said that looking forward; the company expects to close the year on a high in terms of financial performance. He expressed his pleasure over the fact that the company is on its way to becoming the indispensable platform for different sections of society to connect and collaborate.  

    What Lies Ahead for ZM?

    Statistics reveal that ZM stock has faced an abysmal performance during the last 12 months. That is quite surprising; given the fact that how the company has performed during the pandemic. But analysts believe that the strong competition to the company other market giants have caused its stock to suffer. In the long run, however, ZM stock is expected to depict strong performance.

  • Buy Zoom Stock… Is It Worth Buying In 2023?

    Buy Zoom Stock… Is It Worth Buying In 2023?

    Zoom’s shares trade on the NASDAQ exchange under the ticker symbol ZM. If you would like to buy Zoom stock, you need to go through a broker.

    If you do not have a brokerage account, you need to open one to buy Zoom stock.

    Inexperienced investors can choose between two types of brokers: full-service or online/discount brokers.

    Understanding Zoom’s Rise in Popularity

    In 2020, the pandemic catapulted Zoom Video Communications Inc. (ZM) into the limelight as businesses worldwide shifted to remote work.

    Understanding Zoom's Rise in Popularity

    Overnight, Zoom became a household name. Sales skyrocketed by 326%, hitting $2.6 billion, while profits surged from $21.7 million to an impressive $671.5 million.

    While most companies have returned to the office, many expect the flexibility introduced during the pandemic to stick around long-term.

    Zoom’s CEO, Mr. Yuan, recognizes this new reality and is dedicated to empowering employees and customers to thrive in a distributed work environment.

    However, Zoom faces tough competition from giants like Microsoft and Google, who have upped their game in video conferencing.

    Zoom’s ability to hold onto its market share will depend on how it matches up against these powerful rivals as remote and flexible work trends continue to shape our lives.

    This remains the most bullish driver for those eager to buy Zoom stock.

    Zoom’s Performance in 2023

    Zoom’s performance in 2023 continues to demonstrate its resilience and relevance in a post-pandemic world.

    While it may no longer be the high-growth tech stock it once was, Zoom’s technology has proven to be incredibly sticky.

    Remote and hybrid work models have become the norm, making virtual meetings and collaboration essential.

    Zoom’s versatility across industries and company sizes further solidifies its position.

    Notably, Zoom maintains a strong margin profile, with impressive profitability and cash reserves.

    Many continue to hold a bullish stance on the stock, considering its potential for EPS expansion through its growing enterprise business and attractive valuation.

    It’s a smart move to buy Zoom stock or at the very least, keep it on your radar in 2023.

    Analyzing Zoom’s Financials

    Zoom’s journey from pandemic success story to long-term investment is a topic of great interest for investors

    In this section, we delve into the company’s financials in 2023, examining its revenue and profit growth, as well as its balance sheet and overall financial stability.

    This would help investors make up their minds if they want to buy Zoom stock.

    • Zoom’s Revenue and Profit Growth

      In FY23Q1, Zoom raked in $1.105 billion in revenues, beating street estimates by about $30 million.

      However, the growth boom that made Zoom a pandemic darling has fizzled out. Investors now seek other reasons to buy Zoom stock.

      Revenue growth dropped to just 3% compared to the previous year, a far cry from the peak of 369% during the height of the pandemic.

      While they managed to beat earnings per share expectations, it was less impressive compared to previous quarters.

    • Zoom’s Balance Sheet and Financial Stability

      Despite exceeding revenue expectations, there are some concerning signs about overall financial stability.

      The number of new Enterprise customers added was the lowest in years, and the net dollar expansion rate continued to decline.

      The growth of customers generating significant revenue also slowed down. Moreover, remaining performance obligations (RPO) saw lower year-over-year increases.

      It is important to note, however, that Zoom’s balance sheet remains solid with liquid assets amounting to $5.6 billion, and no long-term debt.

    Zoom Stock Fundamental Analysis

    Zoom was growing in earnings and sales well before the Covid-19 hit. Its Video Communications segment EPS has grown from 275% to 800%, despite low single-digit EPS, over the past three quarters.

    Quarterly revenue growth across the last eight reports has stood between 78% and 182%.

    Last quarter ZM Stock reported EPS that beat analysts’ estimates by 114%. The 2021 EPS estimate is up 29% from 2020, and the 2022 EPS estimate is up another 29%.

    The earnings estimate is expected to far exceed expectations due to Covid-19, and estimates are being revised upward.

    ZM’s return on equity is 21%, meaning that the company is managed well.

    ZM Stock has also seen its after-tax margins improve over the past two quarters: 15.1% reported in December and 23% reported in March.

    Institutional investors are taking a more significant stake in the company. The number of fund holdings of the company has increased by 5%.

    Because it is a recent IPO and extensive, there are many outstanding shares for institutions to buy.

    What to Know Before Buying Zoom

    Zoom has been around since 2011. Eric S. Yuan founded the company in his home country of China. Zoom was his idea of how to communicate between companies.

    What to Know Before Buying Zoom

    He developed the concept while serving as Cisco’s corporate vice president of engineering when he immigrated to the United States.

    In an interview in 2017, Yuan predicted that Zoom would be beneficial to workers to telecommute, and he wasn’t wrong.

    The company’s growth occurred against a sea of video conferencing apps, like Skype or GoToMeeting. Zoom flourished because Yuan spoke personally with dissatisfied customers.

    Zoom’s popularity stems from its reliability. Zoom is less prone to outages than other video conferencing apps that seem to have many glitches and buffering issues.

    Despite the interruptions of kids, the Livestream is always evident.

    Apple offers FaceTime exclusively through iOS and iOS devices. On the other hand, Zoom is widely accessible on Android, iOS, and all P.C.s and Macs.

    Zoom helps workers and is also being used by schools to serve as a tool for digital learning. Free calls are no longer limited to 40 minutes so teachers and students can keep in touch.

    According to the company’s Chief Financial Officer, Kelly Steckelberg, Zoom is an attractive option for customers because it offers reliable and easy access.

    ZM Stock Historical Performance

    In April 2019, Zoom raised $752 million in its initial public offering at an IPO price of 36. On day one of trading, ZM stock soared 72%.

    Zoom stock rose further on June 6, 2019, after its earnings and outlook exceeded expectations. It reached an intraday high of 107.32 on June 20, a growth of about 200% from its IPO price.

    However, at the end of June, ZM stock began to decline as some analysts questioned Zoom’s lofty valuation.

    Zoom stock formed a cup chart pattern over eight months, dropping by 43 percent from its high on October 23, 2019.

    In January, before the coronavirus outbreak, the relative strength line of ZM stock had begun to improve.

    Zoom stock started to climb on February 18 after the coronavirus outbreak began spreading globally.

    The supply of ZM soared in March as corporate workers shifted to working remotely, which boosted demand for the company’s video-calling app.

    In early April, Zoom shares declined amid reports hackers were breaking into meetings. To block these cyberattacks, Zoom added a new security feature.

    In late April, the stock went up after it was reported that the daily active participant count had reached 300 million, with some participants being counted multiple times per day.

    Early investors who were already keen to buy Zoom stock made large gains. By May, Zoom Video had gained a considerable cultural following across the globe.

    ZOOM Stock Technical Analysis

    Zoom’s ten-week M.A. was broken in early August on a weekly chart.

    ZOOM Stock Technical Analysis

    After a big run-up In October, Zoomtopia held its user conference and received positive reviews from analysts. Shares marked a record high of 588.84 on October 19.

    However, ZM stock sent sell signals towards the end of October. The first is that it retreated more than 8% from its high-tight-flag buy point of 529.84.

    Zoom stock completed 2020 with a gain of over 400%. On January 12, shares reached 311, down 43% compared to the high of 588.84 scored on October 19. Deep corrections are rare in stocks.

    ZOOM Valuation

    What is an acceptable value for an exciting tech company whose revenues increase by 5%- 10 %/year? We will certainly not accept a forward P/E ratio of over 150.

    These valuations are crazy and euphoric and make no sense. Even the biggest believers looking to buy Zoom stock would agree that these multiples are overblown.

    We saw these kinds of highly high valuations a decade ago when the dot com bubble appeared. Therefore, those stocks with such high valuations saw their stock prices crash by 70-80%, if not more.

    Under these valuations and a poor growth outlook, ZM Stock is not a buy at these levels. ZM Stock makes a great short candidate for those who like to trade.

    How Much to Invest in Zoom Stock

    Research and an idea of your overall portfolio will help you decide if is Zoom a good investment for you.

    Say, what do you think about the future of working and dialing in from home? But there are other factors to consider.

    How Much to Invest in Zoom Stock

    • You Should Examine Your Financial Situation and Ask

      Will those who go ahead and buy Zoom stock unbalance their portfolio?

      Investors tend to keep their investment portfolios balanced by avoiding too much investment in one company or asset.

      To support a diverse range of investments, most financial advisors recommend not having more than 10% of your portfolio in one stock.

      What is on my radar for the short term? The stock market is an excellent way to build wealth over time. But it would help if you didn’t put all your short-term savings into it.

      Before investing, be sure to keep some cash on hand for an emergency. Financial experts say that you should have three to six months of living expenses saved.

      What are my investment plans for the future? Dollar-cost averaging, where you regularly invest over time, prevents you from buying into the market at times of high prices.

      Don’t forget that you can always buy more shares later.

    How To Buy Shares in Zoom Video Communications

    For those curious about how to buy Zoom shares, worry not. We’ve got you covered. You can buy shares of ZM. from any online brokerage account.

    Among the well-known online brokerages with access to the U.S. stock market are WeBull, Vanguard Brokerage Services, T.D. Ameritrade, E*TRADE, Robinhood, Fidelity, and Charles Schwab.

    Is Zoom Video Communications Under- or Over-Valued?

    Now that we discussed how to buy Zoom shares, we move on to the valuation aspect, for anyone looking to buy Zoom stock.

    For a meaningful valuation of Zoom stock, all metrics must be considered a broader picture of its overall performance. However, analysts often use specific key metrics to gauge value.

    • Zoom Stock P/E Ratio

      Zoom Video Communications is valued at 93.37 times its trailing twelve-month P/E versus the Internet & Software industry’s P/E of 67.08 times.

      In other words, Zoom shares traded at around 93.37x recent earnings.

      That’s relatively high compared to, for instance, the trailing 12-month P/E ratio for the NASDAQ 100 in 2019 (27.29).

      The high P/E rate can indicate either investors are overconfident in the prospects of the company’s shares or overvalued.

    • Zoom Stock PEG Ratio

      Another thing to note is ZM.’s current PEG ratio is 5.67. The PEG ratio is similar to the P/E ratio and considers the company’s anticipated earnings growth rate.

      The Internet & Software Industry averaged a PEG ratio of 4.67 at its closing price yesterday.

    Evaluating Zoom’s Competitive Landscape

    For any investor thinking about the question, ‘is Zoom stock a good buy?’, it would be prudent to assess the company’s competitive landscape.

    This would help shed light on the long-term prospects of the company.

    • Assessing Zoom’s Market Share and Positioning

      Zoom has become the talk of the town in the video conferencing realm, with an impressive 59.9% market share in the U.S. and nearly half of the global market share at 48.7%.

      Its exponential year-on-year growth of 22.3% speaks volumes about its popularity and widespread adoption.

      Zoom’s position as a leader in the industry is reinforced by its large user base of 300 million daily meeting participants.

    • Identifying Competitors in the Video Conferencing Space

      While Zoom takes the spotlight, it faces tough competition from tech giants like Microsoft Teams, Cisco Webex, Google Meet, and Skype.

      These players are also striving to meet the increasing demand for remote communication and collaboration platforms.

      With diverse features tailored for various businesses and industries, these competitors aim to secure their slice of the expanding video conferencing market.

      It’s a dynamic landscape where Zoom’s dominance is being challenged by formidable opponents.

    Factors Affecting Zoom’s Future Prospects

    In assessing the attractiveness of investing in Zoom in 2023, it is essential to consider the factors that will shape its future prospects.

    This will help clarify whether or not you should buy Zoom stock.

    From the impact of post-pandemic work trends to potential challenges and risks, let’s delve into the key considerations investors should keep in mind when evaluating the question, ‘is Zoom a good investment?’:

    • The Impact of Post-Pandemic Work Trends on Zoom

      The way we work has drastically changed post-pandemic, and it will undoubtedly have a significant impact on Zoom’s future.

      With the rise of hybrid work models and the possibility of a return to physical offices, the demand for video conferencing may shift.

      It’s important for Zoom to stay adaptable and offer solutions that meet the evolving needs of businesses like ours.

    • Potential Challenges and Risks for Zoom

      As Zoom continues to navigate the competitive landscape, it faces various challenges and risks that we should be aware of as investors.

      Intense competition, cybersecurity concerns, and the potential saturation of the video conferencing market are just a few factors that could affect Zoom’s growth and market position.

      Before making any investment decisions, it’s crucial to carefully consider these risks and weigh them against the potential rewards.

    • Key Considerations for Investors

      As we assess Zoom’s investment potential, there are key factors we should keep in mind.

      How well can Zoom innovate and diversify its offerings to stay ahead in a competitive market? Can it maintain customer loyalty in the face of increasing choices?

      It’s important to delve into Zoom’s financial performance, growth potential, and management strategies to get a clear picture of its long-term prospects.

    • Assessing Your Investment Goals and Risk Tolerance

      When it comes to investing in Zoom, it’s essential to align our own investment goals and risk tolerance with what Zoom offers. Investors need to understand the volatility of the stock and evaluate whether it suits their portfolio.

      If unsure, seeking professional advice can provide valuable insights.

      Additionally, diversifying the investment across different sectors and asset classes can help mitigate potential risks and maximize opportunities.

    • Diversification and Portfolio Allocation

      To minimize exposure to a single stock like Zoom, it’s wise to consider diversifying your portfolio.

      By allocating your investment across various sectors and asset classes, you spread your risk and increase your chances of capturing potential opportunities.

      Striving for a well-balanced and diversified portfolio is a smart approach that can lead to enhanced long-term investment outcomes while protecting you from relying too heavily on any single stock.

    Is Zoom Better Than Skype?

    Many of you may be comparing Zoom vs. Skype since these are the two most popular video calling apps for professionals.

    Both options are good, but Zoom is the complete solution for business users and productivity.

    If the small number of added features Zoom has over Skype does not matter to you, then the real difference is the price, explaining why Zoom is better than Skype.

    This is important to consider, as many investors are wondering is Zoom stock a good buy.

    Zoom’s regular subscription is $14.99 per year, but the free version is easy to use and includes many.

    Video calls can be more advantageous to those who need to communicate with over 100 participants or feel that they cannot deal with the 40-minute window.

    If Microsoft Teams’ added capabilities, Office apps, and partnership tools benefit your team, you might as well bundle Skype components into it.

    However, this will cost you more since each Office 365 account costs at least $5. But Microsoft Office is a very famous suite, and more businesses are paying for it.

    If so, you’d better take advantage.

    That is unless you genuinely wish to be all out with Zoom for a huge company and you wish to put 1,000 attendees in, defying Skype’s 300-person limit.

    While choosing between Zoom and Skype, both offer simplified remote communication, but several factors buy Zoom stock should consider before selecting one method over the other.

    Skype is the more user-friendly of the two apps, mainly because Skype has been around for a long time.

    One of the reasons is that more people are already familiar with it. The 50-member maximum makes it desirable for small businesses and squads.

    Zoom can be a sensible choice for enterprise-size companies because of its widespread customer support network and intensive business features.

    Conclusion

    Zoom stock holds the Accumulation/Distribution Rating of D.

    This rating system analyzes the price and volume changes in stores over the past 13 weeks of buying and selling (trading).

    So, the current rating of D indicates that more funds are buying Zoom stocks than selling.

    This Accumulation/Distribution Rating, A+ being a higher-end to E being the lower end of the scale, measures institutional buying and selling of a given stock.

    As new and more video conferencing software is coming to the market and the world is opening up, zoom stocks are relatively going down since last year.

    If you buy Zoom stock in 2021, it must be clear that its growth might be slow compared to other new technologies in various sectors of the world.

    Frequently Ask Questions

    Below are some frequently asked questions related to buying Zoom stock.

    Can You Buy Zoom Stock?

    Yes, you can buy Zoom stock.. Everyone can purchase Zoom stock after its IPO in April 2019. Zoom stock is now traded on NASDAQ with the ticker symbol ZM.

    Is Zoom a Publicly-Traded Company?

    Yes, zoom is a publicly-traded company. It went public on April 18, 2019, with a starting share price of US$36 per share; the share price increased over 72.1% on the very first day of its trading. In 2019 its revenue was 622 million USD.

    Is Zoom Stock Overvalued?

    Some Wall Street analysts raised concerns that Zoom shares are overvalued after a 601% surge in 2020 to date as schools, corporations, and government offices flock to Zoom meetings.

    To this date, in March 2021 Zoom is trading at 350 dollars per share which is 150 dollars less than early 2020 prices.

  • Top 3 Work-From-Home Stocks in 2021

    Top 3 Work-From-Home Stocks in 2021

    A little over a year ago, people were not even familiar with the term ‘work from home’ and now, because of this worldwide pandemic, almost everyone has worked from home one way or the other. The COVID-19 pandemic proved to be catastrophic for many companies but it also opened up many opportunities for companies as well as investors. With the introduction of work from home, this pandemic has changed the business model of many companies. Many big corporations such as Google and Facebook have even adopted this work from home for long term. This shift towards working online has created demand for digital platforms that are designed to help meet the requirements of working from home. A survey conducted by research and advisory firm Gartner showed that almost 80% company leaders are planning on allowing employees to work from home part time and 47% are planning to allow their employees to work from home full time. In another survey conducted by PwC of 669 CEOs, almost 78% agreed that work from home will be implemented in the long run. Since office based work is substituted by work from home, we’ll be looking at some of the best work from home stocks in 2021. Here are top 3 work from home stocks for 2021:

    Zoom Video Communications, Inc. (ZM)

    Zoom has witnessed an immense increase in its demand amidst this global pandemic. Zoom’s model has helped businesses all over the world because of its remote working model. The company currently carries Zacks rank #3 (Hold). In February 2020, Zoom’s stock was valued at $87.66 and as of yesterday it closed at an astonishing $337.43. This accounts to an increment of almost 285% in little over a year. Every day, almost 200 million people login to Zoom, compared to 10 million users just before the pandemic. In the US, Zoom is the most used conferencing application and has 43% market share. The fundamentals of this company looks promising, and investors should surely keep their eyes on this stock’s movements.

    DocuSign Inc. (DOCU)

    DocuSign is an organization that provides e-signature solutions and allows companies to manage agreements online. DocuSign has benefited many organizations that transferred to work from home amidst the global pandemic. Since many companies have shifted their business model online, this e-signature solution is to benefit them in long term. Organizations such as Oracle and Microsoft have integrated themselves with DocuSign which will further help them grow their customer base. The company carries a Zacks Rank #3 (hold). To date, the company’s shares have soared up to 143% in a year. In March 2020 the stock price was $84.02 and it has increased to $204.31 as of 5th March 2021. According to Zacks Consensus Estimate for fiscal year 2022, the earnings has estimated to be moved up by 28.2% to $1.09 per share over the same time frame.

    Dropbox (DBX)

    Dropbox, a cloud service provider, has become a crucial part of many organizations in this digital age. Dropbox has an estimate of over 600 million users. During the coronavirus pandemic, cloud storage and other online service providers saw a dramatic increase in their usage and demand as consumers shifted towards these platforms. Dropbox witnessed a rise of nearly 25% in daily trials of its premium package. Dropbox has been consistently profitable and for 8 consecutive quarters their earnings per share have risen. Dropbox stock has risen up by 30% to date, as compared to the price before the coronavirus pandemic.

  • Demand For Zoom Inc (ZM) Shares Overdid Company Expectations, Resulting In $2 Billion Sale

    Demand For Zoom Inc (ZM) Shares Overdid Company Expectations, Resulting In $2 Billion Sale

    One of the world’s top videoconferencing platforms, Zoom Video Communications (ZM), has raised $2 billion in a secondary share issue. The Wall Street Journal reported that Zoom CFO Kelly Steckelberg said that Zoom initially expected to receive $1.5-1.75 billion but received more thanks to investors’ high demand.

    According to a Zoom Inc (ZM) press release, the developer sold approximately 6 million shares of its Class A common stock for $340 per share. Steckelberg said the company’s cash on hand has almost doubled thanks to the addition of this issue.

    A financial director quoted in the WSJ said Zoom Inc (ZM) would use the raised capital to expand sales and marketing, in addition to expanding data centers. An expansion of its research facility in Singapore and India was announced last year by the company.

    Steckelberg admitted that some of the funds would be spent on mergers and acquisitions. More details on Zoom’s financial plans will reveal in the company’s upcoming income statement, she added.

    In the last quarter, Zoom posted good financial results. The first quarter of 2020 amounted to $777.2 million, a rise of $600 million compared to the same period last year. Operating profit reached $192.2 million. The company experienced a loss of $1.7 million a year earlier. In October, Zoom had about $70 million in debt, according to S&P Global Inc.

    As a result of the pandemic and the increasing trend towards digitalization in society, Zoom Inc (ZM), a technology company has begun to benefit from the pandemic, as many individuals have found themselves working from home and using Zoom’s software to connect with colleagues, family, and friends.

  • What changed for these 49 stocks in Pre-Market Session?

    What changed for these 49 stocks in Pre-Market Session?

    Fuel Tech Inc. (FTEK) stock plunged -8.8% to $1.14 in the pre-market trading after the technology company offered advanced engineering solutions for the optimization of combustion, pollution control, and water treatment systems in utility and industrial applications, financial results for the third quarter were officially published. The most recent rating by H.C. Wainwright, on March 13, 2020, is at a Neutral.

    Equillium Inc. (NASDAQ: EQ) shares are trading down -4.17% at $4.83 at the time of writing after on November 11, the company announced quarterly results for the third quarter of 2020. The company’s 52-week range was noted as $2.20 to $27.05. Analysts have a consensus price target of $24.

    Immuron Limited (IMRN) tumbled over -4.17% at $8.05 in pre-market trading today. US DoD Naval Medical Research Center Reports Positive Immunological Responses to Vaccine.

    Infinity Pharmaceuticals Inc. (INFI), a Biotechnology company, dropped about -6.62% at $1.41 in pre-market trading Thursday following an earnings surprise of -6.67 percent was revealed by the company. It was anticipated a quarter ago that this drugmaker would report a loss of $0.20 per share when it actually posted a $0.16 loss, providing a 20 percent surprise.
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    Tellurian Inc. (TELL) stock moved down -5.6 percent to $1.18 in the pre-market trading following the company finished the third quarter of 2020, with cash and cash equivalents of roughly $77.9 million and current borrowings of about $80.8 million. The balance sheet of Tellurian accounted for about $293.3 million in total assets.

    Co-Diagnostics Inc. (CODX) gained over 5.19% at $13.99 in pre-market trading Thursday 12 November 2020. Co-Diagnostics, Inc. CoPrimers™ Shown to be Effective in COVID-19 Saliva PCR Tests Without Sample Extraction.

    Abeona Therapeutics Inc. (ABEO) is down more than -3.85% at $1.25 in pre-market hours Thursday 12 November 2020 after a front-runner in gene and cell therapy, revealed quarterly results and business updates. The stock had jumped over 13.04% to $1.30 in the last trading session.

    Before the trading started on 12 November 2020, MannKind Corporation (MNKD) is down -3.57% to reach $2.7. It has been trading in a 52-week range of $0.80 to $2.52.

    RAVE Restaurant Group Inc. (RAVE) stock plunged -11.84% to $0.67 in the pre-market trading. The most recent rating by ROTH Capital, on May 12, 2016, is at a Neutral.

    Dada Nexus Limited (NASDAQ: DADA) shares are trading up 5.08% at $32.7 at the time of writing. The company’s 52-week range was noted as $14.60 to $37.38. Analysts have a consensus price target of $36.

    FuelCell Energy Inc. (FCEL) tumbled over -1.49% at $2.65 in pre-market trading today.

    Zoom Video Communications Inc. (ZM), a Telecom Services company, rose about 3.38% at $427.3 in pre-market trading Thursday.

    Canaan Inc. (CAN) stock moved up 3.05 percent to $2.7 in the pre-market trading.

    Muscle Maker Inc. (GRIL) lost over -9.6% at $1.79 in pre-market trading Thursday 12 November 2020.

    Moderna Inc. (MRNA) is up more than 5.03% at $86.59 in pre-market hours Thursday 12 November 2020. The stock had jumped over 8.40% to $82.44 in the last trading session. Moderna Has Completed Case Accrual for First Planned Interim Analysis of its mRNA Vaccine Against COVID-19 (mRNA-1273).

    Before the trading started on 12 November 2020, Coty Inc. (COTY) is down -3.89% to reach $4.45 after the company topped analysts’ outlook and surged as much as 22.2% on Nov 6 following its first-quarter fiscal 2021 results. It has been trading in a 52-week range of $2.65 to $13.01.

    Pinduoduo Inc. (PDD) stock soared 17.53% to $131.0 in the pre-market trading following an innovative and emerging tech firm and one of the top Chinese e-commerce players, revealed its unaudited financial results for the third quarter ended September 30, 2020. The most recent rating by Goldman, on November 03, 2020, is a Buy.

    Sea Limited (NYSE: SE) shares are trading up 3.48% at $175.01 at the time of writing following the news recently that pharmaceutical companies are closing on their COVID-19 vaccine candidates. The company’s 52-week range was noted as $30.50 to $187.75. Analysts have a consensus price target of $164.

    GrowGeneration Corp. (GRWG) grew over 7.26% at $22.46 in pre-market trading today after GrowGeneration reported record third-quarter 2020 Financial Results.

    Blink Charging Co. (BLNK), a Specialty Retail company, rose about 5.09% at $10.73 in pre-market trading Thursday.

    LightInTheBox Holding Co. Ltd. (LITB) stock moved up 3.31 percent to $2.5 in the pre-market trading.

    Bionano Genomics Inc. (BNGO) gained over 14.13% at $0.639 in pre-market trading Thursday 12 November 2020. Multi-Center Evaluation of Bionano Optical Genome Mapping by Cytogenetics Thought Leaders in the US Leads to Recommendation for Bionano’s Saphyr to Replace Karyotyping as First-Line Test for Detection and Identification of Structural and Copy Number Variants in Leukemia Patients.

    Vroom Inc. (VRM) is down more than -9.88% at $36.77 in pre-market hours Thursday 12 November 2020 following Vroom reported third Quarter 2020 results. The stock had jumped over 6.56% to $40.80 in the last trading session.

    Before the trading started on 12 November 2020, Turkcell Iletisim Hizmetleri A.S. (TKC) is up 3.16% to reach $5.23. It has been trading in a 52-week range of $4.36 to $6.36.

    Himax Technologies Inc. (HIMX) stock soared 12.2% to $4.6 in the pre-market trading after the prediction of Revenue to surge by approx. 10% consecutively and Gross Margin to get close to 29%. The most recent rating by Credit Suisse, on April 01, 2020, is at an Outperform.

    Qualigen Therapeutics Inc. (NASDAQ: QLGN) shares are trading down -10.03% at $3.23 at the time of writing. The company’s 52-week range was noted as $3.29 to $21.50.

    NovaBay Pharmaceuticals Inc. (NBY) grew over 8.82% at $0.67 in pre-market trading today.

    IMAC Holdings Inc. (IMAC), a Medical Care Facilities company, rose about 146.1% at $2.05 in pre-market trading Thursday. IMAC Holdings, Inc. Expands Missouri Footprint with Acquisition of Lockwood Chiropractic in Webster Groves.

    Sino-Global Shipping America Ltd. (SINO) stock moved up 62.18 percent to $3.13 in the pre-market trading.

    InVivo Therapeutics Holdings Corp. (NVIV) lost over -3.21% at $0.555 in pre-market trading Thursday 12 November 2020.

    Castor Maritime Inc. (CTRM) is up more than 18.5% at $0.1595 in pre-market hours Thursday 12 November 2020 after the company posted fiscal Results for the Three Months and Nine Months Ended September 30, 2020. The stock had jumped over 4.95% to $0.13 in the last trading session.

    Before the trading started on 12 November 2020, Just Energy Group Inc. (JE) is down -13.28% to reach $5.29 as a retail energy provider specializing in electricity and natural gas commodities, revealed its quarterly results for the fiscal year 2021. It has been trading in a 52-week range of $4.27 to $93.72.

    OraSure Technologies Inc. (OSUR) stock soared 4.55% to $14.02 in pre-market trading after the company recently topped its 3rd quarter fiscal earnings predictions. The most recent rating by Evercore ISI, on August 21, 2020, is at an Outperform.

    Riot Blockchain Inc. (NASDAQ: RIOT) shares are trading up 4.17% at $3.75 at the time of writing after the news that Bitcoin might take off again after a big gap. The company’s 52-week range was noted as $0.51 to $4.58.

    NortonLifeLock Inc. (NLOK) tumbled over -7.02% at $18.68 in pre-market trading today despite the earnings beat in the recent week.

    NIO Limited (NIO), an Auto Manufacturers company, rose about 3.41% at $44.55 in pre-market trading Thursday after the analyst’s prediction that NIO can be the main player in the Electric Vehicle market.

    JD.com Inc. (JD) stock moved up 5.38 percent to $87.3 in the pre-market trading following the news that JD.com was the largest US seller in China on Singles day.

    Kandi Technologies Group Inc. (KNDI) gained over 8.84% at $6.77 in pre-market trading Thursday 12 November 2020 despite its disappointing sales results in the financial 3rd quarter of this year.

    ICL Group Ltd (ICL) is up more than 3.11% at $3.98 in pre-market hours Thursday 12 November 2020 as the company topped analysts’ outlook on every front. The stock had jumped over 3.21% to $3.86 in the last trading session.

    Before the trading started on 12 November 2020, Uxin Limited (UXIN) is down -3.81% to reach $1.01 after the news that the company’s proprietary rating system has been introduced that assesses and determines the quality of a used vehicle, offers greater precision to make the decision-making process simpler for consumers and enhances the overall consumer experience. The stock has been trading in a 52-week range of $0.72 to $3.30.

    Baozun Inc. (BZUN) stock soared 3.07% to $40.57 in pre-market trading after the news that the stock still carries a great potential for investors. The most recent rating by Credit Suisse, on June 03, 2020, is at an Outperform.

    XpresSpa Group Inc. (NASDAQ: XSPA) shares are trading up 4.47% at $1.87 at the time of writing after the news that the firm to offer Business Update and will reveal Third Quarter 2020 Financial Results on November 16, 2020. The company’s 52-week range was noted as $0.15 to $8.82.

    KE Holdings Inc. (BEKE) grew over 3.48% at $72.02 in pre-market trading today after the news that the company will announce its quarterly report on November 16, 2020.

    Revolve Group Inc. (RVLV), an Internet Retail company, dropped about -8.96% at $20.43 in pre-market trading Thursday after the company Announced Third Quarter 2020 Financial Results with topping all analysts predictions.
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    American Tower Corporation (REIT) (AMT) stock moved up 2.75 percent to $245.0 in the pre-market trading after the reports that the company took over InSite Wireless Group for USD 3.5 billion.

    BIO-key International Inc. (BKYI) gained over 16.2% at $0.52 in pre-market trading Thursday 12 November 2020.

    Liminal BioSciences Inc. (LMNL) is up more than 11.19% at $4.57 in pre-market hours Thursday 12 November 2020 after the report that the firm will reschedule its announcement of quarterly results and conference call. The stock had jumped over 2.49% to $4.11 in the last trading session.

    Before the trading started on 12 November 2020, GoHealth Inc. (GOCO) is down -4.5% to reach $12.73. It has been trading in a 52-week range of $10.02 to $26.25.

    XPeng Inc. (XPEV) stock soared 10.53% to $37.06 in pre-market trading after the company unveiled upbeat quarterly results. The most recent rating by Citigroup, on November 04, 2020, is a Buy.

  • Is It Right Time To Buy Zoom Video Communications (NASDAQ: ZM) Stock?

    Is It Right Time To Buy Zoom Video Communications (NASDAQ: ZM) Stock?

    Zoom Video Communications, Inc. (NASDAQ: ZM) has gained +27.15 during the trading session of Thursday. The strong performance of the company indicated the positive sentiments of investors after a bullish call from Bernstein. Including Bernstein, nine analysts have lifted their price targets after the conference.

    This strong sentiments by investors are because of the Zoom’s investors conference in which the company announces the plan to launch new features, including end-to-end encryption. The company has revealed that its platform is getting third-party app integration called Zapps. Moreover, it has also announced the OnZoom platform which will provide an opportunity to users who wants to host free and paid virtual events.

    This is not the end the now-ubiquitous technology company has also announced a new software Kit (SDK) which will be customizable. This new kit will provide an opportunity for developers to create a customs app for the platform. Furthermore, Zoom has also announced some minor customization options for the core videoconference service like immersive scenes and a smart gallery for Zoom Rooms.

    Zoom Video Communications, Inc. (NASDAQ: ZM) shares were trading up 5.33% at $536.40 at the time of writing on Thursday. Zoom Video Communications share price went from a low point around $60.97 to briefly over $529.74 in past 52 weeks, though shares have since pulled back to $536.40. ZM market cap has remained high, hitting $148.27 Billion at the time of writing.

    Bernstein’s new price target nearly doubled the earlier price and the new price target is $611 from $228. Likewise, Needham has also raised the price target from $440 to $540 and RBC Capital Mkts has set the new price target of $600 from $450. BTIG maintained a buy rating and raised the price target to $500.

    The other five remaining investors who raise the price target for Zoom shares include BofA Securities as it maintained a buy rating and raised the price target from $475 to $570. Rosenblatt has maintained its neutral rating and lifted the price target from $350 to $450. Wells Fargo has maintained an equal-weight rating, ups price target from $375 to $465. DA Davidson has maintained a buy rating, boost the price target from $460 to $600 and Stifel Nicolaus maintained a hold rating, lifted the price target from $350 to $400.

    Previously, MURAL has announced that it has included Zoom Video communication in its growing network of collaboration platform partners. After this partnership, Zoom participants will be able to collaborate in the facilitator’s MURAL, even if they are not a MURAL customer.