Though they both refrained from downgrading their rating on Zoom stock, both teams erred on the side of caution and cut their price targets in response to what they saw as slowing longer term growth rates. This positive sentiment was somewhat shared but not fully matched by the teams at KeyBanc Capital Markets and Wells Fargo in the aftermath of last week's report. We believe our global brand, innovative technologies, and large customer base position us well for the future." Bullish Price Targets Remain We are well on our way to becoming an indispensable platform for enterprises, individuals, and developers to connect, collaborate, and build in the flexible hybrid world of work. Looking forward, we expect to close the year between $4.079 to $4.081 billion in total revenue, representing approximately 54% year-over-year growth, alongside strong profitability and operating cash flow growth.
This is all solid stuff from a high-growth tech company and makes you wonder just how much further investors can expect Zoom shares to fall before they stop bottoming out.Īs Zoom founder and CEO Eric Yuan summed up with the report, "through innovation and dedication, we will continue to deliver happiness to our customers.
In addition to this, the number of Zoom customers now paying more than $100,000 in annual revenue almost doubled, up 94% year over year. Management's guidance for Q4's revenue was also higher than expected, forecasted to be between $1.051 billion and $1.053 billion versus the consensus of $1.02 billion. This was comfortably ahead of analyst expectations, as was their bottom line EPS. Their latest earnings report, released last week, showed revenue growing 35% year on year. For investors who are open to taking on a high risk, high reward play, Zoom presents an interesting opportunity for the long play here.ĭ contributor/ - MarketBeat Sizing Up The Opportunity The new addition to the bull camp comes at a time when Zoom shares' RSI is below 30, suggesting extremely oversold conditions. He made the point that he preferred Zoom as a stay-at-home play, as the hybrid working environment is likely to give their shares staying power beyond the pandemic. Such is the view of Loup Ventures analyst Gene Munster and his team at least, who came out on Monday with bullish comments on Zoom Video and some of their pandemic power play peers.
But with a new variant starting to make the rounds that might be unaffected by existing vaccines, it's not unreasonable to think that a much-needed bid could start appearing in Zoom shares shortly. Shares of the video conferencing company hit their all-time highs in October of 2020, right around when COVID vaccines started being approved, and they've fallen 65% since then. For a company that couldn't seem to stop rallying last year, 2021 has been death by a thousand cuts for Zoom Video ( NASDAQ: ZM).
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