Should i invest in zoom stock

## Should You Invest in Zoom Stock?

Zoom Video Communications (ZM) has become a household name during the COVID-19 pandemic. The company’s video conferencing platform has become ubiquitous, with millions of people using it to stay connected with work colleagues, family, and friends.

As a result of this surge in popularity, Zoom’s stock price has skyrocketed. In 2020, the stock price increased by over 400%. However, in recent months, the stock price has come under pressure, as investors have started to question whether the company’s growth can continue at the same pace.

So, should you invest in Zoom stock? In this article, we will take a close look at the company’s financials, its competitive landscape, and its future prospects. We will also provide a recommendation on whether or not you should buy Zoom stock.

## Company Overview

Zoom Video Communications was founded in 2011 by Eric Yuan, a former Cisco executive. The company’s mission is to “make video communications frictionless.” Zoom’s platform allows users to easily start and join video calls, share screens, and collaborate on projects.

Zoom’s platform is available on a variety of devices, including computers, smartphones, and tablets. The company also offers a cloud-based service that allows businesses to host video meetings and webinars.

## Financials

Zoom’s financial performance has been impressive in recent years. The company’s revenue has grown rapidly, from $622 million in 2019 to $2.65 billion in 2021. Zoom’s net income has also grown significantly, from $24 million in 2019 to $672 million in 2021.

Zoom’s profitability is driven by its high gross margins. The company’s gross margin was 82% in 2021. This means that Zoom keeps 82 cents for every dollar of revenue it generates.

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Zoom’s operating expenses have also been increasing in recent years, as the company invests in marketing and research and development. However, Zoom’s operating margin remains healthy, at 38% in 2021.

## Competitive Landscape

Zoom faces competition from a number of other video conferencing providers, including Microsoft Teams, Google Meet, and Cisco Webex. However, Zoom has a number of advantages over its competitors, including its ease of use, its wide range of features, and its strong brand recognition.

Microsoft Teams is Zoom’s closest competitor. Teams is integrated with Microsoft’s other products, such as Office 365 and SharePoint. This makes it a convenient option for businesses that are already using Microsoft products. However, Teams is not as easy to use as Zoom, and it does not offer as many features.

Google Meet is another popular video conferencing platform. Meet is free to use, and it is integrated with Google’s other products, such as Gmail and Google Calendar. However, Meet is not as feature-rich as Zoom, and it does not offer the same level of support.

Cisco Webex is a long-established video conferencing provider. Webex is a reliable and secure platform, but it is not as easy to use as Zoom, and it is not as feature-rich.

## Future Prospects

Zoom’s future prospects are bright. The company is well-positioned to benefit from the continued growth of the video conferencing market. Zoom’s platform is easy to use, feature-rich, and well-supported. This makes it a good choice for businesses of all sizes.

Zoom is also investing in new technologies, such as artificial intelligence and augmented reality. These technologies could help Zoom to further differentiate itself from its competitors.

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## Recommendation

We recommend that investors consider buying Zoom stock. The company is a leader in the growing video conferencing market, and it has a number of advantages over its competitors. Zoom’s financial performance has been impressive in recent years, and its future prospects are bright.

## Risks

There are some risks associated with investing in Zoom stock. These risks include:

* Competition from other video conferencing providers
* The company’s reliance on a single product
* The company’s high valuation

Investors should carefully consider these risks before investing in Zoom stock.

## Conclusion

Zoom Video Communications is a well-positioned company with a bright future. The company’s platform is easy to use, feature-rich, and well-supported. Zoom is also investing in new technologies, such as artificial intelligence and augmented reality. These technologies could help Zoom to further differentiate itself from its competitors.

We recommend that investors consider buying Zoom stock. The company has a number of advantages over its competitors, and its future prospects are bright. However, investors should carefully consider the risks associated with investing in Zoom stock before making a decision.

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