Zoom Video Communications Stock News

The surge in demand for machine vision cameras reflects the industry's shift towards smart manufacturing solutions, where real-time analytics and high-resolution imaging are critical for maintaining competitive advantage in a rapidly evolving landscape. The surge in demand for machine vision cameras reflects the industry's shift towards smart manufacturing solutions, where real-time analytics a...

Investors who gave up on Zoom Communications (ZM -0.74%) might want to give this cloud software giant another look. Even as the stock remains down 85% from its October 2020 peak, an ongoing operating and financial resurgence is propelling shares to their highest level in nearly two years.

The combination of a new interest rate cut cycle and a swelling stock market will set up a fertile environment for more mergers and acquisitions in 2025. Lower interest rates will make financing the buyouts cheaper, while a rising stock market will enhance the buying power of acquirers using their stock in the transactions.

The days of post-pandemic normalization are over; Zoom Video Communications NASDAQ: ZM has reverted to sustainable growth. The company has sustained a low single-digit quarterly growth pace for nearly three years and is on track to maintain the pace in 2025 and beyond.

A pandemic darling, Zoom Communications (ZM -3.13%) is well past its glory days when its stock was trading above $550 back in 2020. The company saw a lot of pull forward in demand during that time, and as a result, revenue growth has been much slower in the proceeding years.

The second half of 2024 has turned out to be a solid one for Zoom Communications (ZM 2.34%), as shares of the online communications platform provider have shot up roughly 44% since the beginning of July (as of this writing).

Investors are buying up crash protection for their portfolios even as a sizzling postelection rally shows few signs of slowing down.

Zoom is overvalued with a -50% negative margin of safety in my conservative model due to low revenue growth, warranting a Moderate Sell rating. Despite beating Q3 estimates and unveiling new AI initiatives like AI Companion 2.0, Zoom's expansion into AI and contact centers faces stiff competition, making execution challenging. Even in bullish scenarios, valuation models show Zoom's modest growt...