The stock of Zoom Video Communications (ZM) has had a drab 2021, with a gain of only 1% from January 2021. It was nearly fivefold during the peak of the COVID-19 epidemic in 2020. What is the stock prediction for Zoom in 2025?
Zoom’s online video chat service is its most well-known feature. Many workers went to Zoom to hold virtual meetings when the COVID-19 epidemic forced businesses to close and corporations to stop business travel. Churches and schools have also resorted to Zoom to continue their services online, and schools have used the program for remote learning. Zoom’s revenue and client acquisition grew dramatically as a result of these improvements.
Why is Zoom’s stock declining?
Over the last month, the stock gas has lost more than 25% and is down 40% from its peak. Some investors have dumped Zoom stock ahead of the release of the COVID-19 vaccination and the return of travel, lowering demand for Zoom’s videoconferencing service.
Zoom’s 12-month prediction is slightly under $425, suggesting a 24% increase in value. Zoom shares might be worth much more in 2025, owing to a number of possible tailwinds. To service an even larger client base, the firm is growing and diversifying its offerings.
Quarterly Earnings
On August 30, the business released its second-quarter profits.
Zoom Video Communications Inc. (ZM) announced $316.9 million in second-quarter results on Monday.
The San Jose, California-based firm reported a net income of $1.04 per share. Adjusted for one-time gains and expenses, earnings per share were $1.36. The outcomes surpassed Wall Street’s expectations. Earnings of $1.16 per share were predicted by 11 analysts polled by Zacks Investment Research.
At the same time, the video-conferencing business reported sales of $1.02 billion, which was also higher than Wall Street expectations. Zacks polled nine analysts, who predicted $990.2 million. Zoom Video forecasts per-share profits to range from $1.07 to $1.08 for the current quarter, which ends in November.
Zoom’s first-quarter results were better than expected.
Is it a smart long-term investment to buy Zoom stock?
By 2025, the value of ZM shares might have doubled. While some investors are concerned about Zoom’s loss of pandemic tailwinds as businesses return to work and business travel begins, the firm is adapting to the times. It’s offering services that should be in high demand regardless of whether or not there’s a pandemic. Its phone service, for example, will very certainly remain useful after the epidemic has passed.
Zoom’s future also appears bright, given its numerous domestic and worldwide prospects. Its potential in the United States (its primary market), Europe, and Asia have yet to be completely realized. As a result, ZM stock might prove naysayers wrong, and purchasing the dip could be a good long-term investment.