But Zoom called off the deal just two months later, and CEO Yuan said that “financial discipline is foundational to our strategy.” #Zoom stock forecast 2022 software#Zoom had actually hoped to make a big purchase recently when it agreed to buy cloud call contact software firm Five9 in July 2021. “I am in the camp that Zoom is more likely to be an acquirer than an acquiree at this point,” said James Fish, an analyst with Piper Sandler. Jekyll and Hyde would be able to relate to Zoom Video Communications. Zoom could also look to go back out and make a deal of its own if market conditions improve. Here's Why Zoom Could Be a Breakout Stock in 2022. ZM stock rose 95 on Friday and was in the green in the premarket price action today. Romanoff added that if any tech company wanted to make a bigger bet on video, a cheaper way to do so would be with communications software firm RingCentral, which has a market value of just a little more than $4 billion. Its one-year Zoom stock forecast stands at Aug 19 Zoom stock formed a cup chart pattern over nearly eight months hitting a low of on Oct. But he still thinks an Oracle deal for Zoom is highly unlikely because he’s “not sure that their balance sheet would allow them to do such a deal or that they are in the market at all.” #Zoom stock forecast 2022 serial#“Oracle doesn’t have anything like this in their portfolio and they have been serial acquirers over the years,” Romanoff said. There is one other possible wild card though : Business software company Oracle. “I thought a couple years ago that Slack and Zoom should merge because there is no need for standalone video, phone, and messaging products,” Romanoff said.īut he’s not sure Salesforce would want to buy Zoom after already paying up for Slack, noting that Salesforce has “maintained that not looking to do further large deals at this time.” Romanoff noted that a Slack-Zoom combination could make sense. Romanoff added that Zoom is “an innovative company with a great product.” The problem, he said, is that at the height of the pandemic, Zoom was “generating an unsustainable revenue trajectory” and the stock was “sharply overvalued.” “All of software has been battered over the last 10 months.” “I don’t think it’s accurate to say Zoom is uniquely struggling right now,” said Morningstar analyst Dan Romanoff in an email. The Nasdaq has plummeted due to worries about rising interest rates and recession fears as well. Others point out that Zoom is hardly the only tech/software company that is dealing with a post-Covid hangover. That could be a possibility,” Bonner said. However, Bonner said there’s a chance that Zoom could be bought by an investment firm so that it would no longer be subject to the quarterly earnings report whims of Wall Street. Still at a $24 billion market cap, it’s not that cheap and an acquisition premium would push that toward $30 billion or more.”īonner thinks that price tag would likely scare off any big tech buyers, as would the possibility of any potential deal getting a tough review from regulators in Washington. Stock Price Forecast The 25 analysts offering 12-month price forecasts for Zoom Video Communications Inc have a median target of 95.00, with a high estimate of 130.00 and a low estimate of 70.00. “The thesis in favor of acquisition would be to pick up the asset on the cheap since it’s lost so much value in the past year. Not including the after-hours price change, Zoom stock is up about 3% since the start of 2021, trailing the S&P 500, which is up almost 21% over the same period.“A Zoom acquisition is unlikely due to a number of factors,” Bonner said in an email. Gross margin will expand when students return to schools, she said.Īt the same time, travel is returning sooner than executives had expected, she said. The guidance assumes strong growth from Zoom's direct and channel businesses, as well as weakness in the online business because of challenges among smaller customers and consumers, Steckelberg said. The company increased its forecast for the year as coronavirus case counts have increased, including from the Covid delta variant, and some companies delayed plans to reopen offices. It's also ahead of analysts' consensus estimates of $4.67 in adjusted earnings per share and $4.01 billion in revenue. #Zoom stock forecast 2022 full#Analysts polled by Refinitiv had expected adjusted earnings per share of $1.09 and revenue of $1.01 billion.įor the full fiscal year, Zoom said it sees adjusted earnings of $4.75 to $4.79 per share and $4.005 billion to $4.015 billion in revenue - that's a bump from its last estimates of $4.56 to $4.61 in adjusted earnings on $3.98 billion to $3.99 billion in revenue. Date Opening price Closing price Minimum price Maximum price Change ADVANCED MICRO DEV. With respect to next quarter's guidance, Zoom called for $1.07 to $1.08 in adjusted earnings per share on $1.015 billion to $1.020 billion in revenue.
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