Since the digital economy begins to go on the Internet all over business and the world, investors should know about companies and services that will be at the forefront of this revolution. In addition to operations and the backing systems, other everyday needs should be satisfied using technologies, and it is here that video conferences and communications enter the game.
However, they are not all equal, so Microsoft Co. NASDAQ: MSFT I decided to stop Skype, its previous service in the field of video conferences. Some investors could blame President Trump to return remote employees to the office, but there is a clear sign that other companies potentially accept the market share left by Skype to the market.
Not only leads to possession, but also expands it as some of the main leaders of the modern digital and globalized economy. Platforms such as Google Meets located Alphabet Inc. NASDAQ: Googl And Zoom Video Communications Inc. NASDAQ: ZMThey landed in the center of the United States Corporate meeting, and it seems that this is necessary for the first investors to adhere to them, despite the recent news in Skype.
Two sides to video coin
For social video calls and conferences, there are applications that successfully cover needs every day, such as Facetime or WhatsApp Video. They will never disappear, since families and friends communicate daily with the video, but everything changes in a professional environment.
From the interview to the meeting of the team and even the closure of sales and potential leaders or customers, the video Facetime or WhatsApp simply does not comply with the professional standard necessary to fulfill these tasks. This is the so -called “high -quality” aspect of the study of these services.
Now the quantitative areas should be covered, and that is why Zoom and Google Meets will continue to dominate.
- They allow tuning based on the assembly of the meeting, such as the background, the screen exchange and other built -in tools that Skype has not developed.
- Thanks to the integration of productivity tools, such as chat systems, calendars and documents, Zoom and Google are found, bring their closest experience for personal investors.
- These platforms are focused on business needs, not consumers. They took on the market and probably will remain leaders advancing forward.
Growth potential Zoom Stock: Double values
Increase video communication today
Zoom Video Communications
- 52-week range
- $ 55.06
▼
$ 92.80
- P/e ratio.
- 24.46
- Value is valuable
- $ 90.05
Since Zoom shares are now traded by 80% of their 52-week high level, they still have a lot of space to rise under the right circumstances and attitudes. One of them is the fact that Zoom is a business based on a subscription, a type that investors will look for if the volatility of the technological sector remains increased.
To make financial indicators more stable and predictable is the basis for the Wall Sustritis analysts to be comfortable, increasing the shares and the remaining on it. For this reason, those of The Benchmark decided to repeat their purchase rating as of February 2025, this time they also rated $ 97 per share.
This point of view will require a new 52-week maximum Zoom Stock and a purely implied rally of 30.5% compared to the current price. Moreover, some new buyers studied key performance indicators (KPI) and decided that the action is a purchase today.
Starting with customer indicators, the last quarterly results of Zoom show investors how it has grown to 192,600 corporate customers today, which led to potential monetization and expand the company’s assessment with respect to the one that analysts invite.
The predictable and stable income from the subscription transferred to the net free cash flow (operating cash flow minus capital costs) during the last quarter up to 416 million dollars.
With such a strong financial report, AQR Capital Management decided to increase its assets in Zoom by 5.2% as of February 2025, having today delivered a clean position to 612.2 million dollars. USA or 2.4% of the company’s ownership today.
For those who are looking for a way to soften part of the recent volatility of the S&P 500, and also retains the potential for increasing in their portfolios, they can turn to the current assessment of the price of profit (P/E) in 24.8x for scaling to date, which is significantly lower than the average estimate of the P/E 44.4x.
Simply put, the closure of Skype only shows investors what models work and which are not, and Zoom is surviving, surviving the best KPI for reason. Today he also offers a fantastic ratio of risk to remuneration.
Before considering the possibility of scaling a video of communication, you will want to hear it.
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