One of the most dreaded feelings for an investor is when the stock they just bought is overvalued, or they missed out on an undervalued opportunity by not acting fast enough.

But what if you had the insights to effectively evaluate a company like Zoom Video Communications Inc before investing? Investing requires a certain perspective to avoid being overly confident in a company or worried about cyclical changes. A smart way to take the guesswork out of knowing when to buy or sell Zoom Video Communications Inc’s stock is to have the right tools and resources as well as a clear monitoring process.

In this article, we go over a few key elements for understanding Zoom Video Communications Inc’s stock price such as:

• Current stock price and volume
• Stock price history
• Upgrades and downgrades from analysts
• Stock price momentum as measured by its relative strength

About Zoom Video Communications Inc (ZM)

Before we jump into Zoom Video Communications Inc’s stock price, history, target price and what caused it to recently dip, let’s take a look at some background.

Zoom Video Communications, Inc. is a provider of video communication platform. The Company's platform connects people through video, phone, chat, and webinars, and enables experiences across disparate devices and locations. Its products include Zoom Meetings, Zoom Phone, Zoom Chat, Zoom Rooms, Zoom Hardware-as-a-Service, Zoom Conference Room Connector, Zoom Events, Zoom Webinar, Zoom Developer Platform, Zoom App Marketplace, and Zoom Contact Center. Its customer base spans a range of industry categories, including education, entertainment/media, enterprise infrastructure, finance, government, healthcare, manufacturing, nonprofit/not-for-profit and social impact, retail/consumer products, and software/Internet. The Company’s subsidiaries include Zoom Voice Communications, Inc., ZVC UK LTD, ZVC Australia PTY LTD, ZVC Netherlands B.V., ZVC Japan KK, Zoom Video Communications (Suzhou) Inc., Saasbee Inc. (Hefei) Ltd., ZVC India PVT LTD, Keybase LLC and SaasBee Software (Hangzhou) Co., Ltd.

Want to learn more about Zoom Video Communications Inc’s stock? Click the button below to subscribe to A+ Investor and get access to everything you need to know about Zoom Video Communications Inc. The AAII Stock Evaluator puts a company’s grades, charts, news, financials, valuation, ratios, filings and more at your fingertips.

Zoom Video Communications Inc’s Stock Price as of Market Close

As of February 21, 2023, 4:00 PM CST, Zoom Video Communications Inc’s stock price was $72.47.

Zoom Video Communications Inc is down 4.78% from its previous closing price of $76.11.

During the last market session, Zoom Video Communications Inc’s stock traded between $74.30 and $77.10. Currently, there are 342.16 million shares of Zoom Video Communications Inc stock available for purchase.

Zoom Video Communications Inc’s price-earnings (P/E) ratio is currently at 33.7, which is high compared to the Software industry median of 31.9. The price-earnings ratio gauges market expectation of future performance by relating a stock’s current share price to its earnings per share.

Zoom Video Communications Inc Stock Price History

Zoom Video Communications Inc’s (ZM) price is currently down 3.37% so far this month.

During the month of February, Zoom Video Communications Inc’s stock price has reached a high of $85.13 and a low of $72.27.

Over the last year, Zoom Video Communications Inc has hit prices as high as $136.00 and as low as $63.55. Year to date, Zoom Video Communications Inc’s stock is down 60.59%.

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What Caused Zoom Video Communications Inc Stock’s Price to Dip?

Stock prices are primarily based on seller supply and buyer demand. But have you ever wondered about what other factors affect a stock's price?

One of the most common factors that can drastically impact a stock’s price is analyst upgrades and downgrades. When an analyst changes their opinion of a stock by upgrading or downgrading their rating, it often leads to a sudden stock price adjustment. As of February 17, 2023, there was 1 analyst who downgraded Zoom Video Communications Inc’s stock and 0 analysts who upgraded over the last month.

Additionally, you'll want to evaluate Zoom Video Communications Inc’s financial health and valuation. It is possible for a stock to appear cheap based on one valuation metric but appear expensive on another. It is also possible for one valuation ratio to be associated with outperforming stocks during certain periods of time but not others.

Therefore, AAII developed a composite valuation to help resolve such issues. AAII’s Value Grade analyzes six distinct variables: price-to-sales (P/S) ratio, price-earnings (P/E) ratio, the ratio of enterprise value to earnings before interest, taxes, depreciation and amortization (EV/EBITDA), shareholder yield, price-to-book-value (P/B) ratio and price-to-free-cash-flow (P/FCF) ratio.

Zoom Video Communications Inc’s current valuation based on AAII’s Value Grade is a F, which means it is considered to be Ultra Expensive.

Learn how to evaluate stocks with AAII Grades and Scores with A+ Investor today.

Lastly, news and media coverage as well as recent press reports about the company or its industry may cause stock prices to fluctuate. You can check out the most recent news articles about Zoom Video Communications Inc (ZM) by visiting AAII Stock Evaluator.

Relative Price Strength of Zoom Video Communications Inc

Relative price strength addresses the relationship between a stock price’s trend and the price trend of the market. This ratio is expressed as a percentage and helps investors understand a company’s momentum as well as its value. You can use relative price strength to select investments that have been outperforming the market or a specific benchmark.

For AAII’s Momentum Grade, a weighted relative price strength is calculated. The weighted four-quarter relative price strength rank is the relative price change for each of the past four quarters. The most recent quarterly price change is given a weight of 40%, and each of the three previous quarters are given a weighting of 20%.

As of February 17, 2023, Zoom Video Communications Inc has a weighted four-quarter relative price strength of -10.23%, which translates to a Momentum Score of 21 and is considered to be Weak.

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Zoom Video Communications Inc Stock Price: Bottom Line

As of February 21, 2023, Zoom Video Communications Inc’s stock price is $72.47, which is down 4.78% from its previous closing price.

At AAII, we stress that investors should never buy or sell a stock solely based on its stock price. Past returns do not guarantee future performance. Therefore, you should consider multiple ratios, fundamentals and analytics before making a decision. Whether you decide it’s a good time to buy or sell Zoom Video Communications Inc’s stock based on its stock price forecast is ultimately up to you.

It’s important to understand that stock prices are driven by a variety of factors, but ultimately the price at any given moment is due to the supply and demand in the market. Stock price overviews, like the one you just read, only give you a small snapshot of a company’s performance, value and momentum.

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