152.00 +1.12 (0.74%)
After hours: 6:54PM EDT
|Bid||151.60 x 900|
|Ask||152.34 x 800|
|Day's Range||147.20 - 161.69|
|52 Week Range||59.94 - 164.94|
|Beta (5Y Monthly)||N/A|
|PE Ratio (TTM)||1,676.44|
|Earnings Date||Mar 03, 2020|
|Forward Dividend & Yield||N/A (N/A)|
|1y Target Est||108.75|
Yahoo Finance’s Dan Howley joins Seana Smith to discuss Microsoft's big changes to its Office software on Monday.
Zoom Technologies shares were suspended through April 8th, after the stock was confused with Zoom Video. Yahoo Finance’s Julie Hyman breaks down the news.
New data points bear out that digital tools like Zoom Video Communications Inc.’s teleconferencing software and Microsoft Corp.’s cloud-computing offering are seeing huge spikes in usage as the COVID-19 pandemic keeps workers housebound.
Shareholders are looking into Zoom Video Communications Inc. (NASDAQ: ZM)'s P/E Ratio, as the share price went up in the previous regular session.In the most recent market session, the share price posted a 1% decrease from its closing price of $151.70. Over the past month, Zoom Video Communications stock increased by 31.00%, and in the past year, by 148.21%. With performance like this, long-term shareholders are optimistic but others are more likely to look into the price-to-earnings ratio to see if the stock might be overvalued.Assuming that all other factors are held constant, this could present itself as an opportunity for shareholders trying to capitalize on the higher share price. The stock is currently below its 52 week high by 8.03%. The P/E ratio measures the current share price to the company's EPS. It is used by long-term investors to analyze the company's current performance against its past earnings, historical data and aggregate market data for the industry or the indices, such as S&P 500. A higher P/E indicates that investors expect the company to perform better in the future, and the stock is probably overvalued, but not necessarily. It also shows that investors are willing to pay a higher share price currently, because they expect the company to perform better in the upcoming quarters. This leads investors to also remain optimistic about rising dividends in the future.Most often, an industry will prevail in a particular phase of a business cycle, than other industries.Compared to the aggregate P/E ratio of 17.84 in the telecom services industry, Zoom Video Communications has a higher P/E ratio of 1685.56. Shareholders might be inclined to think that Zoom Video Communications might perform better than its industry group. It's also possible that the stock is overvalued.There are many limitations to P/E ratio. It is sometimes difficult to determine the nature of the earnings makeup of a company. Shareholders might not get what they're looking for, from trailing earnings.See more from Benzinga * 5 Communication Services Stocks Moving In Monday's Pre-Market Session * 6 Communication Services Stocks Moving In Wednesday's Pre-Market Session(C) 2020 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Although founded less than 10 years ago, Zoom Video (ZM) has been growing by leaps and bounds. Sales over the past three years are up more than 10 times, from $60.8 million in 2017 to $622.7 million last year. In that same period, Zoom has gone from earning no profit at all, to earning $25.3 million last year, and Zoom's free cash flow is even better -- $113.8 million.Nevertheless, 5-star Goldman Sachs analyst Heather Bellini assigns Zoom Video an $80 price target, and rates the stock a "sell." (To watch Bellini's track record, click here)As Bellini explains, "due to COVID-19, more organizations are reliant on communication tools that allow their remote workforce to collaborate effectively." Zoom is seeing "increased demand" and management is "adding capacity this year to support the uptick in both paid and free usage."While much of the traffic is currently "free usage" -- people using Zoom in 40-minute-long blocs for which the company does not charge -- they have the "leading video communications platform" and are likely to convert at least some of these "free users to paid and upsell [current, paying] enterprise customers to more seats and premium products (i.e. Zoom Rooms and Zoom Phones)."That's the good news. The bad news is that, because a lot of Zoom's customers are small- to medium-size businesses that Bellini predicts will be "more negatively impacted by COVID-19," the analyst expects to see retention of these clients drop to just 75% in the first year after COVID-19. Some of these businesses, presumably, will try to cut costs by eliminating Zoom subscriptions when they're no longer necessary. Others of these businesses ... may go out of business, unable to recover from the strain of COVID-19.That being said, Bellini sees renewal rates ticking back up in the second and third years post-Corona. At the same time, new business signings are expected to surge mightily as Zoom converts free users to paid subscribers. Blending the two trends, she guesstimates that Zoom's revenues will grow about 61% this year, followed by growth rates of 42% and 33% in 2021 and 2022, respectively.All of which sounds pretty good, right? So again, why does Bellini rate Zoom stock a sell?Well, at its current valuation, Zoom stock sells for more than 1,600 times trailing earnings. The stock's valuation relative to free cash flow is a little bit better, but 372x FCF still isn't exactly cheap. Even assuming Zoom manages to grow its profits as fast as it grows its sales, despite making massive investments in expanding capacity along the way (and Bellini does not think it will manage this, by the way), we would be looking at about a PEG ratio (that's price-to-earnings, divided by growth) of more than 27x at the near-term 61% growth rate -- and a PEG ratio of about 50 at the 33% growth rate projected for 2022.When you consider that value investors consider a PEG ratio of anything over 1.0 expensive, it's actually not at all hard to understand why Goldman thinks this one is a "sell."All in all, most of Wall Street is surveying the videoconferencing player from the sidelines. Based on 18 analysts tracked by TipRanks in the last 3 months, 6 rate Zoom stock a Buy, 11 say Hold, while only 1 recommends Sell. Unfortunately for the bulls, the 12-month average price target stands at $110, marking a 30% downside from current levels. (See Zoom stock analysis on TipRanks)
‘As a society, we are social distancing, but strangely we are also more connected, and it’s all because of this harrowing public-health crisis.’
Zoom Video's ZM usage numbers are, well, zooming amid the coronavirus pandemic, according to JPMorgan. The firm's analyst reiterated Zoom Video stock overweight.
John Velis, a currency and macro strategist for the Americas at BNY Mellon, isn’t convinced the market has reached a bottom.
Americans searched for ‘recession’ and ‘unemployment’ well before the data emerged to confirm their fears. And, once they were told to practice social-distancing, they turned to other search terms, a few of which reflect the rise and fall of stocks.
Health crisis highlights 10 ways companies can be more attentive and responsive to people’s needs, writes Ann Skeet.
Both Zoom Video Communications (NASDAQ:ZM) and Zoom Technologies (OTCMKTS:ZOOM) have made major moves on Wall Street in recent weeks. However, it appears some confusion has allowed ZOOM stock to ride on the coattails of ZM stock.Source: Michael Vi / Shutterstock.com On Thursday, the Securities and Exchange Commission suspended trading of Zoom Technologies stock until April 9. This comes after more and more people worldwide are having to work remotely due to the coronavirus from China outbreak. And in turn, employers are turning to video conferencing tools from Zoom Video in order to connect with their employees.Because of this, ZM stock has gained nearly 40% in the past two weeks and investors have taken notice. When going to buy shares, though, many people have apparently confused the two similar-sounding companies.InvestorPlace - Stock Market News, Stock Advice & Trading TipsThis issue has caused a 108% rise in the ZOOM stock over the same two-week period, and nearly 900% year-to-date. This is the second time this has happened in nearly a month, and now the SEC is stepping in."The Commission temporarily suspended trading in the securities of ZOOM because of concerns about the adequacy and accuracy of publicly available information concerning ZOOM, including its financial condition and its operations, if any, in light of the absence of any public disclosure by the company since 2015; and concerns about investors confusing this issuer with a similarly named NASDAQ-listed issuer, providing communications services, which has seen a rise in share price during the ongoing COVID-19 pandemic," the SEC said. * 10 Undervalued Stocks Crashing on the Coronavirus Pandemic ZM stock was up 7.3% on Friday afternoon.Nick Clarkson is a Web Editor at InvestorPlace. As of this writing, he did not hold a position in any of the aforementioned securities. More From InvestorPlace * America's Richest ZIP Code Holds Wealth Gap Secret * 10 Stocks to Buy That Will Benefit From Coronavirus Mayhem * 5 Bank Stocks to Buy Now Because This Isn't 2008 Again * 12 Stocks to Buy That Are Already Positive The post Zoom Stock or ZM Stock? Confusion Continues for Potential Zoom Video Investors appeared first on InvestorPlace.
This article is a part of InvestorPlace.com's Best ETFs for 2020 contest. Tom Taulli's pick for the contest is the Renaissance IPO ETF (NYSEARCA:IPO).It has certainly been rough going for InvestorPlace.com's annual exchange-traded funds contest (as should be no surprise, none of the picks have positive returns). As for my pick -- Renaissance IPO ETF (NYSEARCA:IPO) -- the year-to-date loss was a horrible 31% earlier in the week. But the mega rally has certainly made a big difference.InvestorPlace - Stock Market News, Stock Advice & Trading TipsConsider that the YTD performance is much more palatable, a 17% loss (for the contest, it's ranked No. 5). It has actually done better than the S&P 500, which is off by 23%.The IPO ETF is based on the Renaissance IPO Index, which includes 50 companies. The firm conducts quarterly reviews to determine which holdings are included or removed. Keep in mind that an initial public offering -- IPO -- is when a company offers a large amount of shares to the public (say 10% to 20%).So why has the IPO ETF done relatively well -- at least compared to the main indexes? IPO Can Still Be One of the Best ETFsWell, the fund has exposure to some areas of the economy that are likely to see secular growth. One of the categories is cloud-based software to allow for remote working. DocuSign (NASDAQ:DOCU), for example, makes it easier for business to create contracts via the cloud. The YTD return is close to 10%.Then there is Slack Technologies (NYSE:WORK), whose shares are up 15%. The company operates one of the largest -- and fastest -- online collaboration platforms.But of course, the big winner for the remote-working megatrend has been Zoom Video (NASDAQ:ZM). The demand for its video-conference software has been staggering. And the stock price has doubled so far this year, hitting a market capitalization of $39 billion. * 7 Strong Stocks to Buy to Survive the Coronavirus Crisis What's more, the IPO ETF has exposure to emerging biotech companies, which have shown some reliance this year. Just look at the fund's position in Moderna (NASDAQ:MRNA). The company, which leverages a patient's RNA, says that it might have a COVID-19 vaccine by the fall. The IPO MarketFor the most part, the IPO market is likely to see little activity. The extreme volatility makes it incredibly difficult for companies to manage a financing. Note that according to data from EY, there were only two deals that were priced in March (and none since March 11). The firm also forecasts that things may not rebound until the fall. This is based on surveys from Wall Street deal attorneys.So what were the two companies that went public? Imara (NASDAQ:IMRA), which is a clinical-stage biotech company that focuses on treating rare genetic disorders of hemoglobin. The shares have gained about 1%. The other is GFL Environmental (NYSE:GFL), which is the fourth-largest diversified environmental services company in the U.S. Unfortunately, the offering was a bit of a dud, falling 25%. Bottom Line on the IPO ETFThe strong relative performance for the IPO ETF is encouraging. It shows the importance of investing in next-generation companies as well as getting diversification across many holdings. In other words, this can allow for the softening of a major blow to the overall market.And even though the IPO market may be quiet for a while, this is not necessarily a problem for the IPO ETF. Renaissance can keep companies in its index for up to two years.Tom Taulli (@ttaulli) is the author of various books on investing and technology, including Artificial Intelligence Basics, High-Profit IPO Strategies and All About Short Selling. He is also the founder of WebIPO, which was one of the first platforms for public offerings during the 1990s. As of this writing, he did not hold a position in any of the aforementioned securities. More From InvestorPlace * America's Richest ZIP Code Holds Wealth Gap Secret * 10 Stocks to Buy That Will Benefit From Coronavirus Mayhem * 5 Bank Stocks to Buy Now Because This Isn't 2008 Again * 12 Stocks to Buy That Are Already Positive The post Best ETFs for 2020: The Renaissance IPO ETF Got Major Help From Zoom appeared first on InvestorPlace.
Zoom Video Communications Inc (NASDAQ: ZM) has been one of the biggest market winners from the coronavirus-driven surge in employees working from home around the world.However, one analyst says RingCentral Inc (NYSE: RNG) is also getting a COVID-19 boost, and is anticipating an imminent product launch that will replace Zoom within the RingCentral customer base.The Analyst Rosenblatt Securities analyst Ryan Koontz reiterated his Buy rating and $245 price target for RingCentral.Benzinga is covering every angle of how the coronavirus affects the financial world. For daily updates, sign up for our coronavirus newsletter.The Thesis Koontz believes RingCentral will launch its own video product called RCMeeting within the next week."We expect that in the very near term RCMeeting will not only begin to be sold in RingCentral Office (RCO) bundles across most US segments, but it will also begin to replace the installed base of ZM at RNG customers," Koontz wrote in a note.He said RCMeeting will also eliminate the limit on simultaneous video conference participants that was part of the previous Zoom license.Koontz said his research suggests RingCentral's business has been booming across all segments since the U.S. COVID-19 outbreak began. He said this strong demand will likely continue throughout the second quarter as well.While the outbreak may be temporary in nature, Koontz said RingCentral will likely benefit from customers being forced to work from home realizing the value and efficiency of cloud-hosted communication and collaboration.For Zoom Video investors, Koontz said the loss of RingCentral will likely not have a material impact on overall revenue.See Also: Roku Vs. Netflix: Needham's Laura Martin Sees A Clear Quarantine WinnerBenzinga's Take RingCentral and other companies that benefit from the work-from-home environment will continue to get a big business boost while the economy is shut down. The key for long-term investors will be whether or not they hold onto at least some of that business when things eventually get back to normal.Do you agree with this take? Email firstname.lastname@example.org with your thoughts.Latest Ratings for ZM DateFirmActionFromTo Mar 2020Morgan StanleyMaintainsEqual-Weight Mar 2020NeedhamInitiates Coverage OnBuy Mar 2020JP MorganMaintainsOverweight View More Analyst Ratings for ZM View the Latest Analyst Ratings See more from Benzinga * Zoom Video, Teladoc Lead The Coronavirus Short Squeeze Candidates * Benzinga CEO Talks Hedging Bets, Dividend Plays On PreMarket Prep(C) 2020 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
This article is a part of InvestorPlace.com's Best ETFs for 2020 contest. Bret Kenwell's choice for the contest is the SPDR Innovative Technology Fund (NYSEARCA:XITK).Finding the best ETFs for 2020 has been particularly difficult after the coronavirus from China curve ball. My pick for the contest, the SPDR Innovative Technology Fund (NYSEARCA:XITK), was off to a strong start, rallying more than 13% in the first six weeks of the year. However, like many names, XITK has been crushed.InvestorPlace - Stock Market News, Stock Advice & Trading TipsThe exchange-traded fund fell 36% from peak to trough and is currently down about 13.4% year to date. However, amid those depressing losses sits a couple pieces of good news.While the peak-to-trough decline in the ETF is ugly, it wasn't out of line with the S&P 500. In fact, it was roughly in-line with the 35.6% high-to-low drawdown we saw in the SPDR S&P 500 ETF (NYSEARCA:SPY).Second, the SPY rallied just 5.6% to its 2020 high, before being smashed as volatility rose. In other words, it rose half the amount that the XITK ETF did before suffering a similar decline. Lastly, with the XITK down a lackluster 13.4% year to date, the SPY still lags that performance by 1,000 basis points, currently down 23.4%.So, it's not all bad news. A Closer Look at XITKOne reason this ETF is holding up so well? Zoom Video (NASDAQ:ZM).ZM stock has exploded higher, rallying more than 100% so far in 2020. That's the No. 1 holding in the XITK ETF at the moment, although it only has a weighting of 2.4%. * 7 U.S. Stocks to Buy on Coronavirus Weakness Other top holdings include Netflix (NASDAQ:NFLX), Shopify (NYSE:SHOP) and Slack (NYSE:WORK).Some of these stocks are benefiting from the coronavirus outbreak. Those under stay-at-home and quarantine orders have little to do but stream video (like Netflix). Meanwhile, Slack continues to see users flock to its platform as teams work remotely. But not all of the ETF's holdings have managed to avoid pain.Still, five of the top ten holds in the XITK are positive over the last three months. Only one -- Amazon (NASDAQ:AMZN) -- can make a similar claim in the SPY.But here's the most encouraging observation to me: This growth-stock ETF should be badly lagging the S&P 500. It shouldn't be in-line with it and it certainly shouldn't be outperforming it right now. I don't want to get too optimistic here, but so far, we are only suffering SPY-equivalent losses on the downside, while reaping more upside when stocks are rallying.I'm not sure when or where the stock market will ultimately bottom. For all we know, maybe it already did. In any event, to see such solid performance out of XITK gives me confidence that when COVID-19 blows over and the market gets back into "rally mode," this ETF is going to fly higher. Is It Still One of the Best ETFs for 2020? Click to Enlarge Source: Chart courtesy of StockCharts.comAfter peeling back some of the layers on this ETF, we've found some more interesting data points. For instance, over the past year, the ETF is down less than 5%. That compares to a near-12% decline in the SPY during the same timeframe.Despite its rapid fall from the highs, XITK has dominated the SPY on multiple fronts. The most glaring is the 56.1% return over the last three years vs. a return of just 5.3% for the SPY ETF. Further, the XITK has superior returns over the last one month, three months, six months and since its inception in January 2016.The XITK ETF is now a four-star rated ETF by MorningStar, while commanding a risk-rating of just "moderate." Admittedly, it has "above-average" risk, but it also has "high" returns. That's clear from some of the data points above.The most recent ETF report writes, "although this fund employed greater risk during the last 3 years than other funds in its category, it has been compensated for that risk with a positive Alpha [outperforming its benchmark] and Sharpe Ratio of 1.11."At the end of the day, it's my observation that the XITK has led to outsized returns while maintaining reasonable drawdowns compared to the S&P 500. As a result, I am looking for an eventual rebound in the fund. If we can get a sharp economic rebound in the third and fourth quarter, the ETF could certainly be one of the best performing ETFs of 2020.Bret Kenwell is the manager and author of Future Blue Chips and is on Twitter @BretKenwell. More From InvestorPlace * America's Richest ZIP Code Holds Wealth Gap Secret * 10 Stocks to Buy That Will Benefit From Coronavirus Mayhem * 5 Bank Stocks to Buy Now Because This Isn't 2008 Again * 12 Stocks to Buy That Are Already Positive The post Best ETFs for 2020: SPDR Innovative Technology Fund Still Has Room to Run appeared first on InvestorPlace.
A Walmart executive says the retailer is selling more tops, but not bottoms, while so many Americans are using videoconferencing tools to work from home.
The mixup between the red-hot conferencing software, Zoom Video, and Zoom Technologies, a small Chinese tech firm, has happened before.
Related: Should you turn on your video during a Zoom call or take Slack breaks? My day job (also: night job) is CEO of Slack, a publicly traded company with investors to whom I am a fiduciary, 110k+ paying customers of all sizes, and thousands of employees I care about very, very much. Butterfield noted that on Tuesday, March 10, Slack hit 10 million simultaneously connected users; that’s up from 1 million in October 2015.
Remote work is here to stay. The coronavirus crisis is making companies and employees increasingly more comfortable about working from home or out of the office. For many startups, remote work is already part of the normal course of business, and for some, it is the primary working environment.
HP CEO Enrique Lores tells Yahoo Finance demand for PCs and printers have been strong as people work from home during the coronavirus pandemic.
Quartz analyzed the responses of the 36 universities that enroll a third of international students in the US.