Is zoom stock a buy. Zoom Video Communications Inc.
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Zoom Stock: Is It a Buy Right Now? | GOBankingRates - Key Points
NerdWallet does not offer advisory or brokerage services, nor does it recommend or advise investors to buy or sell particular stocks, securities or other investments. Everyday investors can now jump on the line with Zoom Video Communications, which debuted on the Nasdaq stock exchange in April under the ticker symbol ZM.
Zoom's cloud-based service allows people in different locations with different devices to connect face-to-face and share content via video, voice and chat. And in the time of coronavirus, people have increasingly turned to the service as the work-from-home era continues.
So Zoom is popular. But does its stock belong in your portfolio? Read on to find out how to evaluate whether to buy Zoom stock. Zoom makes money by selling its platform subscriptions to everyone from single users to companies with hundreds of thousands of employees. Unlike some other firms, Zoom went into its IPO as a profitable company. Full disclosure: NerdWallet uses Zoom. But profitability is just one factor investors should consider before buying a stock. Spend some face time with Zoom's most recent annual report as well as its S-1 filing, both available on its investor relations website.
In other words, all the things that can help investors determine if Zoom is a worthy addition to their portfolio. Research and data are also available via online brokers or independent analysis sites like Morningstar.
One reminder: Zoom trades on the Nasdaq under the ticker symbol ZM. Learn how to research stocks. If you're still keen after doing some research, consider how Zoom stock would slot in among the rest of your portfolio. Specifically, look at how diversified your portfolio is and what this new investment would mean for your asset allocation. A general guideline for investors is to spread money across different companies, industries and geographies, thereby reducing risk and exposure to any one stock's sudden movements.
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Current Price. Recent earnings show a business that continues to put up strong results despite the stock's performance. Image source: Getty Images. Zoom Video Communications.
Motley Fool Returns Market-beating stocks from our award-winning service. Zoom also has many other ancillary products, like Zoom Chat, that will hopefully drive down churn and increase spending from its current customers. Lastly, management thinks it can grow faster outside of the Americas, where Zoom is not as penetrated as in the U. Management said on the conference call they expect this trend to continue in the coming years.
After looking at the financials and reading the company's product roadmap, I think Zoom Video stock could be a great long-term purchase at these prices. There are risks with investing in any stock. But if Zoom's FCF continues to grow over the next three to five years, I think investors will be happy looking back at today's prices. Cost basis and return based on previous market day close.
Calculated by average return of all stock recommendations since inception of the Stock Advisor service in February of Discounted offers are only available to new members. Calculated by Time-Weighted Return since Volatility profiles based on trailing-three-year calculations of the standard deviation of service investment returns. Invest better with The Motley Fool. Get stock recommendations, portfolio guidance, and more from The Motley Fool's premium services.
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