Zoom Video Communications (NASDAQ: ZM) stock has had a dreary year, with just a 1% gain since January 2021. However, in 2020, it increased by almost five times at the height of the COVID-19 epidemic. The tech sector has been hurt by recent market downturns and Zoom stock is down over 67% for the past year.
A recent poll by Advanced Workplace Associates of almost 10,000 people in multiple sectors reported that 86% of employees want to work from home at least two days a week.
Another poll by Pew Research Center of about 10,000 people reported 59% were working from home compared to 71% in 2020. Of those working from home 61% said they chose to versus 38% that were forced to work from home.
Many market analysts have been bearish on the tech sector, but there may be some value in companies that still have value.
Zoom stock may be one of those companies. I think the Zoom stock may have found support at $136 and could be oversold. Does this mean it will jump up tomorrow? No, but I think there is some news and trends that could push it up in the next few years.
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What is Zoom’s stock target for 2025?
I think it would be fair to say that Zoom should be around $300 by 2024. Zoom is perhaps best recognized for its online video chat service. As offices closed and business travel was halted throughout the COVID-19 pandemic, many employees looked to Zoom to conduct virtual meetings.
Moreover, churches turned to Zoom to keep their services online, and schools used it for remote learning. These changes drove significant revenue and brought new customers to Zoom.
Zoom Stock’s Technicals
Zoom stock is in a price consolidation phase between $130 and $140. ZM trend is currently bearish as it trading below both the 50 and 200 moving averages. However, if the price stabilizes, we can expect there to be more support.
Why is Zoom stock plunging?
Zoom’s stock ended the day at $138.51 on February 17th off of a 52 week high of $441.20. The company’s shares fell more than 10% in the past month, and they’ve lost nearly 50% of its value since its peak.
Furthermore, Zoom Corporation’s stock has been sold by some investors in anticipation of COVID cases decline and travel reopening, which will reduce demand for Zoom’s video conferencing service.
Is it a good long-term investment to buy Zoom stock?
Zoom stock has a lot of upside potential, and it could double in value by 2025. On the other hand, others are concerned about Zoom’s pandemic tailwinds as businesses bring workers back to the workplace and business travel resumes. Nevertheless, the company is adapting to the times to stay competitive.
I don’t currently own Zoom stock directly, but it is on my watch list. For me, I would consider it a long-term growth play.
It’s pushing products that should be in demand, whether or not a pandemic exists. So, for example, its phone service will almost certainly be useful after the epidemic is over.
Overall, Zoom’s future appears bright, especially given the many opportunities available both domestically and internationally. It has yet to fully exploit its potential in the United States (its largest market) and Europe and Asia. As a result, ZM stock might disprove naysayers, and buying it while it is low may be a good investment strategy in the long run.
Zoom Stock Pivots