Stock Price & Analysis

Based on the provided data and current market conditions, here's a comprehensive analysis of ZM stock:

Technical Analysis

The stock is showing bearish momentum with a recent decline of 1.72% to close at $78.07. The stock is trading below both its 20-day moving average ($81.92) and 60-day moving average ($81.26), indicating near-term weakness. The RSI at 37.89 suggests the stock is approaching oversold territory but hasn't reached extreme levels yet.

Fundamental Analysis

The company's valuation metrics appear attractive compared to the tech sector:

• Forward P/E: 13.57 (vs. sector median of 24.04)
• Forward PEG: 1.61 (vs. sector median of 1.86)
• Forward P/CF: 11.46 (vs. sector median of 22.11)

Recent Developments

1. Insider Activity: A significant insider sale occurred on January 15, 2025, with director Jonathan Chadwick selling 89.2% of his holdings (12,489 shares) for approximately $1 million. Notably, there have been 67 insider sales and zero purchases in the past six months.

2. Institutional Movement: Mixed institutional sentiment with 330 institutions increasing positions while 280 reduced their holdings in the latest quarter.

Growth Prospects

• Revenue growth has stabilized but remains modest at 2.1% YoY
• Enterprise customer growth continues with 3,995 customers contributing over $100K in annual revenue, up 7% YoY
• Record low churn rate of 2.9%, indicating strong customer retention

Analyst Sentiment

Recent analyst actions show mixed but generally cautious optimism:

• Wells Fargo upgraded from Sell to Hold with $85 PT (Jan 7, 2025)
• Jefferies upgraded to Strong Buy with $100 PT (Dec 19, 2024)
• Morgan Stanley maintained Hold with $96 PT (Dec 18, 2024)

Recommendation

SELL - While Zoom maintains a strong market position and attractive valuation metrics, several concerning factors exist:

1. Limited growth prospects in a maturing market
2. Significant insider selling activity
3. Increasing competition from Microsoft Teams, Google Meet, and Cisco Webex
4. Technical indicators showing bearish momentum
5. Return-to-office trends potentially impacting future demand

Based on the provided data and market analysis, here is the price prediction for ZM stock in 2025:

ZM stock is expected to reach $85-90 by end of 2025, driven by the company's successful transition from pure videoconferencing to an AI-powered workplace platform and improving profitability metrics. The stock is currently trading at $78.07 with strong technical support at $76.94 and resistance at $83.12. Recent insider selling activity, including a director's large sale of 89.2% holdings, suggests some near-term caution, but institutional investors remain mixed with 330 increasing and 280 reducing positions last quarter.

The S1 support level for ZM Stock is $77.07 ,The R1 resistant level for ZM Stock is $81.6.

As of the end of day on 2025-01-24, the price of ZM Stock was $80.28.

The target price for ZM Stock according to analyst rating is 91.64, with the highest price target at 115.00 and the lowest at 69.00. Analysts have a Moderate Buy rating on ZM Stock overall.

The market cap of ZM is $24.6B.

Based on the provided data and current market context, here's my analysis of whether ZM is overvalued:

Technical Analysis

Valuation Assessment ZM currently trades at a P/E of 24.87x (Q3 2025), which has decreased from 31.27x in Q4 2024, suggesting improving valuation metrics. The EV/EBITDA ratio stands at 13.31x, while P/S ratio is 5.08x and P/B ratio is 2.64x.

Growth and Profitability Revenue growth has been modest, with Q3 2025 revenue at $1.18B, showing slight sequential growth from $1.16B in Q2 2025. The company maintains healthy gross margins around 76%, though net margins have declined to 17.58% in Q3 2025 from 26.07% in Q4 2024.

Analyst Sentiment Recent analyst actions show mixed views. While some firms like Jefferies upgraded ZM to Strong Buy with a $100 price target (22.53% upside), others like Needham maintain a Hold rating. The consensus appears cautiously optimistic with price targets ranging from $85-100.

Conclusion ZM is not overvalued at current levels considering:

1. Strong balance sheet with zero debt and healthy cash position
2. Stable revenue growth despite post-pandemic normalization
3. Robust margins despite competitive pressures
4. Reasonable valuation multiples compared to historical levels
5. Positive analyst sentiment with upside potential

Zoom Video Communications, Inc. provides an all-in-one intelligent collaboration platform. It provides a unified communications and collaboration platform that delivers fundamentally changes how people interact, connecting them through frictionless and secure meetings, phone, chat, content sharing and more. Its products are grouped under various categories: Core Communications, AI, Employee Experience, Customer Experience and Developer Ecosystem. Core Communications products include Zoom Meetings, Zoom Phone, Zoom Team Chat and others. AI products, such as Zoom AI Companion. Employee Experience products include Zoom Rooms, Workspace Reservation, Zoom Docs and other. Customer Experience products, such as Zoom Contact Center, Zoom Virtual Agent, Zoom Events and others. Developer Ecosystem products include Zoom Developer Platform, Zoom App Marketplace and Zoom Apps. It serves various industries, including education, entertainment/media, enterprise infrastructure, finance, and others.

Based on the available data and market analysis, here's the price prediction for Zoom (ZM) stock in 2030:

ZM stock is projected to reach $145-155 by 2030, driven by its successful transition from a pure video conferencing platform to an AI-powered workplace solutions provider and improved profitability metrics. The company's strong enterprise customer growth with 3,995 customers contributing over $100,000 in annual revenue and record low churn rate of 2.7% demonstrate sustainable business momentum. Recent insider selling activity and institutional movements suggest mixed sentiment, but the company's zero-debt position and accelerating free cash flow provide fundamental support for long-term growth.

ZM has a total of 7420 employees.