How to Trade Zoom After Fiscal Q4 2024 Performance



Zoom Video Communications made headlines during the pandemic as an alternative way to conduct business and connect with friends and family remotely. The stock has now been trying to find its way in a very different economy with fewer restrictions on travel. Learn more about Zoom's fiscal fourth-quarter performance and what the analysts are forecasting for the stock. 











Stock:Zoom Video Communications
Symbol for Invest.MT5 Account:ZOOM
Date of Idea:28 February 2024
Time Line:1 – 6 months
Entry Level:$70.00
Target Level:$100.00
Position Size for Invest.MT5 Account:Max 5%
Risk:High

  • The Invest.MT5 account allows you to buy real stocks and shares from 15 of the largest stock exchanges in the world.

All trading is high risk and you can lose more than you risk on a trade. Never invest more than you can afford to lose, as some trades will lose and some trades will win. Start small to understand your own risk tolerance levels or practice on a demo account first to build your knowledge before investing. 

Contents

Zoom Fiscal Q4 2024 Performance

Here are some of the key highlights from the latest fiscal fourth-quarter 2024 earnings report from Zoom: 

  • Earnings per share of $1.22 vs $1.15 expected 
  • Revenue of $1.15 billion vs $1.13 billion expected 
  • Net income of $298.8 million compared with a net loss in the prior year for the same quarter 
  • 220,400 enterprise customers, up from 219,700 from the prior quarter 

On the face of it, Zoom beat analyst expectations on both earnings and revenue figures. There also seems to be a turnaround from last year which reported a net quarterly loss. According to Kelly Steckelberg, Zoom's chief financial officer, growth would have been faster if not for the company reorganization in the sales team which took longer than expected to recover from.  

The increase in enterprise customers is a good sign of its sales team restructuring, but it is early days and anything can happen throughout the year. There may be some untapped revenue in Zoom's Team Chat migration tool which saw a 4x increase in downloads over the last six months – without much marketing.  

However, in the earnings call, Zoom's management team highlighted that for the fiscal first quarter, Zoom's revenue is forecasted to be below what analysts had estimated. Furthermore, and more worryingly, Zoom's forecast for the 2025 fiscal year is for a 1.6% revenue growth which many investors would consider low for a tech company.   

This is perhaps one of the reasons there are more analysts with a hold and sell rating on the stock than a buy rating, as shown below. Even with a small share price rise after the earnings report the stock is still down around 88% from its all-time high in October 2020. 

Zoom Stock Forecast – What do the Analysts Say?

According to analysts polled by TipRanks for a Zoom stock forecast in the past 3 months, there are currently 2 buy, 5 hold and 2 sell ratings on the stock. The highest price level for a Zoom stock forecast is $100.00 with the lowest price target at $60.00. 

The average price target for a Zoom stock forecast is $76.25.

Source: TipRanks, 27 February 2024

 

An Example Trading Idea for the Zoom Stock Price

An example trading idea for the Zoom share price could be as follows:  

  • Buy the stock on a break above the post-earnings high at $70.00 to allow for volatility. 
  • Target just below the highest analyst price target of $100.00. 
  • Keep your risk small at a maximum of 5% of your total account.   
  • Time Line = 1 – 6 months  
  • If you buy 10 Zoom shares:  

    • If target is reached = $300.00 potential profit [($100.00 – $70.00) * 10 shares].

Remember that markets go up and down and it is unlikely the share price will move up in a straight line. In fact, it may even go much further down before it rises, especially considering the stock is down 88% from its record high and has struggled to regain the demand it had from the pandemic period.

Be sure to exercise good risk management and always know how much you could potentially lose on a trade and the risks involved, as well as the costs.

With the Admirals Invest.MT5 account you can buy and sell US stocks with a commission from $0.02 per share. This means buying 10 shares in Zoom stock would result in a commission of $0.20 ($0.02 * 10 shares) for executing a per-side transaction.

There is a low minimum transaction fee of $1. So, the example trading idea above would result in a commission of just $1 overall! 

How to Buy Zoom Stock in 4 Steps  

With Admirals, you can buy shares in companies like Zoom with a low commission of just $0.02 per share and a low minimum commission of just $1 on US stocks. 

  1. Open an account with Admirals to access the dashboard.   
  2. Click on Trade on one of your live or demo accounts to open the web platform.   
  3. Search for your stock in the search window at the top right to view the live price chart. 
  4. Click Create New Order from the bottom of the screen to open the trading ticket. 
Source: Admirals MetaTrader 5. Zoom. Monthly. Date: January 2019 to Feb 2024, captured on 27 Feb 2024. Past performance is not a reliable indicator of future results or future performance.

 

Click on the banner below to trade Zoom stock today ▼▼▼ 

Do You See the Zoom Stock Price Moving Differently?   

Remember that all analytics and trading ideas are based on the personal view and experience of the author.

If you believe there is a higher chance Zoom share price will move lower, then you can also trade short from a CFD (Contracts for Difference) trading account which Admirals also provide.

The Trade.MT5 and Trade.MT4 account allows you to speculate on the price direction of stocks and shares using CFDs.

This means you can trade long and short to potentially profit from rising and falling stock prices.

INFORMATION ABOUT ANALYTICAL MATERIALS:   

The given data provides additional information regarding all analysis, estimates, prognosis, forecasts, market reviews, weekly outlooks or other similar assessments or information (hereinafter “Analysis”) published on the websites of Admirals’ investment firms operating under the Admirals trademark (hereinafter “Admirals”) Before making any investment decisions please pay close attention to the following:   

  • This is a marketing communication. The content is published for informative purposes only and is in no way to be construed as investment advice or recommendation. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research, and that it is not subject to any prohibition on dealing ahead of the dissemination of investment research.    
  • Any investment decision is made by each client alone whereas Admirals shall not be responsible for any loss or damage arising from any such decision, whether or not based on the content. 
  • With a view to protecting the interests of our clients and the objectivity of the Analysis, Admirals has established relevant internal procedures for the prevention and management of conflicts of interest. 
  • The Analysis is prepared by an independent analyst, Jitanchandra Solanki (analyst), (hereinafter “Author”) based on their personal estimations.    

  • Whilst every reasonable effort is taken to ensure that all sources of the content are reliable and that all information is presented, as much as possible, in an understandable, timely, precise and complete manner, Admirals does not guarantee the accuracy or completeness of any information contained within the Analysis.    
  • Any kind of past or modelled performance of financial instruments indicated within the content should not be construed as an express or implied promise, guarantee or implication by Admirals for any future performance. The value of the financial instrument may both increase and decrease and the preservation of the asset value is not guaranteed. 
  • Leveraged products (including contracts for difference) are speculative in nature and may result in losses or profit. Before you start trading, please ensure that you fully understand the risks involved. 



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