
Zoom Video (ZM) Stock Forecast & Price Target
Zoom Video (ZM) Analyst Ratings
Bulls say
Zoom Video Communications has demonstrated a positive outlook supported by a 4.4% year-over-year revenue increase, bolstered by the growth of its enterprise customer segment, which saw an increase to 4,363 customers contributing over $100k in total revenue, up 9% year-over-year. The company maintained a remarkable retention rate of 98%, reflecting strong customer loyalty and satisfaction, while its year-over-year margin expanded by 1,020 basis points, contributing to enhanced profitability. Additionally, Zoom's proactive approach in increasing its common stock repurchase authorization by $1 billion underscores its commitment to leveraging strong cash flow and balance sheet health to enhance shareholder returns.
Bears say
The outlook for Zoom Video Communications is negative due to persistent macroeconomic challenges, including rising interest rates and inflation, which have prompted customers to scrutinize expenses and defer IT investments, potentially leading to decreased revenue growth. Significant execution risks related to staffing changes and go-to-market strategies further heighten concerns over the company’s growth trajectory and investor sentiment. Additionally, risks such as increased churn in the online segment and intensified competition in the Unified Communications as a Service (UCaaS) sector may impede sales cycles and overall performance.
This aggregate rating is based on analysts' research of Zoom Video and is not a guaranteed prediction by Public.com or investment advice.
Zoom Video (ZM) Analyst Forecast & Price Prediction
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