How to Trade Zoom Shares After Q1 Performance

Zoom Video Communications stock surged nearly 900% from its IPO price of around $65.00 on 15 April 2019 to a record high of $588.84 in October 2020. Since then, the stock has tumbled to a record low this year of $60.48 so far.  

Some analysts are turning bullish while some are remaining cautious. Learn more about the latest first-quarter earnings report from Zoom and what the analysts are forecasting for the stock below. 

• 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. 

Zoom Q1 2024 Performance Breakdown

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

• Revenue was up 3% to $1.1 billion beating analyst forecasts of $1.08 billion 
• Earnings per share of $1.16 vs $0.99 cents expected 
• Enterprise customers up 9% from the prior year to 215,900 
• Forecasting fiscal second-quarter revenue of $1.11 billion to $1.15 billion in line with Wall Street expectations 
• Increased full-year guidance to revenue of between $4.465 billion to $4.485 billion 

Zoom reported earnings that beat Wall Street expectations. Investors tend to like the overall user base growing as that means more revenue as highlighted in the figures. However, the earnings presentation only showed growth in its American market, with the rest of the world showing a drop in revenue from the same time last year.  

The management team are hoping that new collaborations and product launches can help to drive up revenue in all the countries it operates in. Much focus is now turning to the expansion of ZoomIQ and its partnership with Anthropic as part of Zoom’s core AI strategy.  

The plan is to build customer-centric AI products starting with Anthropic’s AI model integration with the Zoom Contact Center. While AI is a hot topic right now, it may not yet lead to an increase in revenue for Zoom but it could help with retention in keeping the billings of current clients who are looking for more efficiencies.  

Of course, one of the major issues facing investors is that the stock is trading around record lows and around its IPO (initial public offering) price from 2019. With many businesses moving colleagues back to the office it remains to be seen whether Zoom can exponentially increase its user base and revenue, or just maintain its current performance.

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 5 buy, 19 hold and 0 sell ratings on the stock. The highest price level for a Zoom stock forecast is $100.00 with the lowest price target at $65.00. 

The average price target for a Zoom stock forecast is $82.47.

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 $72.00. 
• Target just below the average analyst price target at $82.00. 
• 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 = $100.00 potential profit ($82.00 - $72.00 * 10 shares).

Remember that markets go up and down and the share price will unlikely move up in a straight line. In fact, it may even go much further down before it rises, especially considering how Zoom shares are trading around record lows and below its IPO price level.

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 at the bottom of the Market Watch window and drag the symbol onto the chart.   
4. Use the one-click trading feature, or right-click and open a trading ticket to input your trade size, stop loss and take profit level.

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's 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. Learn more about CFDs in this How to Trade CFDs article. 

INFORMATION ABOUT ANALYTICAL MATERIALS:   

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