Zoom Video Stock Price Prediction Following Q1 Results

Briefly –

• Zoom Video announced strong Q1 results.
• Its Enterprise strength contributed to the growth.
• Zoom Video can grow further.

Zoom Video (NASDAQ: ZM) announced impressive Q1 results early last week, and ZM shared gained over 20% within a week. Zoom’s management updated monetary policy for Q2 and the 2023 financial year.

Zoom Video to Expand Further

Zoom Video is a communications tech firm based in America. It offers online chat and video telephony services via a cloud-based P2P software network. Moreover, the company concluded its first public servicing in 2019 after securing incorporation in 2011.

Zoom Video revealed impressive Q1 results on Monday, 23rd. Its total revenue surged about 11.9% year-on-year to $1.07 billion, whereas the non-GAAP returns per share stood at $1.03 (beating by $0.16).

Zoom Video CFO Kelly Steckelberg stated that the Enterprise business strength drove the growth as the company saw enhanced renewal rates Y/Y and steady customer increase. He added that Zoom Phone and Zoom Rooms saw success, reaching three million seats over the quarter.

Zoom Video’s management adjusted fiscal guidance for Q2 and the 2023 fiscal year. Overall Q2 volume should stand between $1,115bn and $1.120bn v.s $1.11bn consensus. Meanwhile, the no-GAAP operation earnings should stand between $360M and $365M.

The management projects the revenue for the entire financial year at $4.53bn – $4.55bn, vs. $4.54bn consensuses, whereas the non-GAAP income should hover from $1.48 billion to $1.5 billion.

Zoom Video saw its shares surging over 20% over the past seven days. However, they remained nearly 40% down on YTD. JPMorgan believes ZM stock boasts an impressive risk-reward around the current prices.

Moreover, Benchmark investment firm stated that Zoom has room for further growth, assigning $124 as the buy rating, indicating a 13% surge from ZM’s current price. Meanwhile, AEK Innovation ETH acquired nearly 100K Zoom Video shares following the Q1 results.

Initial Resistance at $120

Zoom Video’s share price hovers approximately 80% lower since hitting $588 ATH on 19 October 2020, and prevailing prices might be lucrative entry levels for long-term market players.

An upside action past $120 will suggest trading Zoom stock, targeting the area at $130. Meanwhile, a drop under the $120 will see ZM hitting the initial support at $100, revealing a sell sign before the share drops to $80.

Final Thought

Zoom Video announced impressive Q1 outcomes on Monday, with the firm’s shared gaining over 20% in a week. Analysts believe the stock can gain 13% from its current price.

Editorial credit: Michael Vi / shutterstock.com