According to the recent survey report, 59% of the respondents believe that Zoom stock will hit $500 again by 2022.
After pulling in significant increases as a result of the pandemic, there are ongoing concerns about whether Zoom Video Communications Inc (NASDAQ: ZM) will sustain its recent uptrend as the pandemic eases. Already, Zoom (ZM) stock plunged in December in reaction to positive news on the coronavirus vaccine.
Zoom gained more recognition in the Americas, the Asia Pacific, Europe, the Middle East, and Africa during the first lockdown in early 2020. The video communication company saw an increase in its users who adopted Zoom to communicate for both official and personal use. Zoom offers HD video, voice, chat. Also, it enables content sharing, which makes it an essential office tool during the stay-home period. When people were forced to stay indoors, several companies opted for video communication service providers like Zoom to sustain their business operations.
As several companies recorded losses as a result of the coronavirus outbreak, Zoom Inc remains one of the top companies to benefit from the coronavirus outbreak. The communications technology company recorded almost five times revenue growth in a year. Data by MarketWatch showed that Zoom had climbed 456.26% over the past year. The company has also grown by over16% in its year-to-date record and has further advanced by 11.51% over the past month. In addition, Zoom is up 1.90% in the last five days.
However, the data revealed that Zoom had plunged 24.33% in the last three months. At the time of writing, Zoom is trading at $391.83 in the pre-market.
Will Zoom Continue to Surge as Pandemic Is Slowing Down?
In a report, Benzinga highlighted the result of a survey involving investors to know if Zoom will climb $500 again. According to the survey report, 59% of the total respondents believe that the communications technology company will hit $500 again by 2022.
The report further explained the reasons behind the respondents’ assertions. Considering the fresh lockdowns in some countries due to the pandemic’s second wave, respondents believe that people may not physically resume to their offices until the coming year. As a result, Zoom will remain an essential office tool for companies and schools.
Investors further noted that Zoom would continue to be a means of communication among office workers even when restrictions are lifted. Zoom already provides easier ways to communicate, and several companies will stick to its use post-pandemic.
Apart from Zoom, respondents said some other companies would also benefit from the new trend of home-offices. The companies include Slack Technologies Inc (NYSE: WORK), Atlassian Corp. PLC (NASDAQ: TEAM), and Amazon.com Inc (NASDAQ: AMZN).
In a separate report, Seeking Alpha noted that Zoom would help a secondary stock offering and invest in “smart acquisitions” to continue to generate gains. Notably, Zoom had already revealed plans to sell 4.4 million new shares in a secondary stock offering.
Ibukun is a crypto/finance writer interested in passing relevant information, using non-complex words to reach all kinds of audience. Apart from writing, she likes to see movies, cook, and explore restaurants in the city of Lagos, where she resides.
