Before the pandemic, there’s a good chance that you didn’t know what Zoom was or that it even existed.
This cloud-based video conferencing service has become incredibly popular over the last couple of years. Because it provides people in various locations with a method to connect through a video and voice chat, it’s used by businesses and individuals alike.
With many people working from home and social distancing from their loved ones, Zoom helped fill the much-needed gap.
Are you looking to expand your stock portfolio and are wondering if Zoom stock might be a smart option?
It’s always a good idea to have as much information as possible before making a decision regarding your finances. Here are some facts about Zoom and Zoom stock that you’ll want to know before investing.
What is Zoom?
Zoom is currently one of the most popular video conferencing programs available to place phone calls or host video meetings online. It’s free to use through the app or by logging onto the Zoom website.
People can use Zoom conference rooms for a variety of things. Businesses use it to host meetings, run training workshops, and hold video job interviews. Teachers use it to run their classes. It has even proven to be helpful for family gatherings.
Setting up a meeting is simple, and it’s even simpler to join. You click on the link that was sent to you, and you’ll be able to join the call. You can choose to turn off your video or audio at any point.
Ultimately, it’s a straightforward platform that came to the rescue when we needed a method of safely connecting with each other.
Zoom Stock Historical Performance
Created in 2011, by the end of 2013, Zoom had one million users and a value of approximately one billion dollars. It debuted on the Nasdaq stock exchange in April of 2019 using the symbol ZM. In early 2020, Zoom hosted more than 300 million users per day.
When they first released Zoom stock onto the Nasdaq stock exchange, it had minimal interest compared to what it currently has. The most significant return on investment occurred in 2020 after the pandemic began. People became aware of Zoom and were interested in investing as they learned more about this platform.
Since 2020, Zoom stock has slightly decreased in value, though it is still performing well. As with many different stocks, there have been some spikes in value throughout the past couple of years.
How Does Zoom Make Money?
Zoom is entirely free of charge when used in its most basic format. Early in the pandemic, Zoom also opened up many of its different features for free, which probably leaves you wondering how they make money.
Zoom makes money off its paid subscription plans and optional add-ons where users can unlock different features. The different tiers allow you to host more people at your event, have longer calls, and include cloud recording storage space, transcripts, and streaming options.
Impact of the Pandemic & Working from Home
Before the pandemic, many companies utilized work-from-home policies, but they weren’t as common as they are now.
Forcing companies to find ways to have their employees work from a safer location proved that working from home can actually be a very successful option. Many companies find that productivity levels and employee happiness have gone up when you remove commute time and distractions that commonly occur in the office.
Zoom has been an integral part of the ability to work from home successfully. While other platforms were available for conferencing, Zoom proved to be the most successful. It is easy to learn and free to use. It is also pretty secure, making it a viable option for most people.
Currently, Zoom has several competitors that businesses use for their conferencing needs. This includes companies like:
Now that there is a shift to a more work-from-anywhere friendly atmosphere at many companies, these businesses are beginning to look into other options that may provide them with specific features that they would like to use.
Is It Too Late to Buy Zoom Stock?
If you were lucky, you gobbled up some Zoom stock early on in the pandemic when you noticed that it was quickly becoming a necessity. If you had invested in Zoom stock at $62.00 back in 2020, your return on investment over the last two years would have been 221.65%. This is an annualized return of 79.34% (not including dividends or reinvestments).
Zoom stock is decreasing a bit in popularity as we move through the pandemic and people can head back to the office, but you have to weigh your options when trying to decide if you still want to buy in. Many different companies and demographics are still using it. This pandemic isn’t over yet, so we may see a shift in Zoom’s popularity again.
As with most stock options, you sometimes have to take a chance when selecting your stocks. Zoom’s stock performance has always been relatively impressive, even before it had a significant spike in value. Recently, numbers have been -55.86% from its 52-week high and 14.18% from its 52-week low.
You can view current Zoom stock data if you’re interested in learning more.
What is Zoom’s Potential Beyond the Pandemic?
Zoom is an excellent success story, but does it have any value beyond the pandemic years?
It’s doubtful that people will completely abandon it, as it served its purpose well. Users may, however, find new ways to utilize Zoom as time goes on.
Zoom has the potential to remain very successful in the future if they evolve their business model. We’re seeing this company expand its business portfolio accordingly, proving that they are looking at the potential of their platform.
For example, they currently offer Zoom Phone, a cloud-based phone solution for businesses of all sizes. It’s also straightforward to use on various devices such as your desktop computer, desk phone, or mobile device. They also offer video webinars, which can be broadcast to as many as 50,000 view-only attendees.
Should I Invest in Zoom Stock?
Zoom is just one of the internet conferencing tools available now, but it grew quickly. This is primarily because it was free, so people could try it out without having to weigh the pros and cons of a subscription. This also made it possible for many different people to join a call without doing much more than entering their email addresses.
While many of us didn’t know about Zoom a few years ago, simply getting invited to a Zoom meeting at some point during 2020 opened up a whole new world of communication for us.
If you consider the reliability of Zoom even at its peak performance, this is a stock option you should strongly look at investing in.
This article was produced and syndicated by Wealth of Geeks.
Amanda Kay, an Employment Specialist and founder of My Life, I Guess, strives to keep the "person" in personal finance by writing about money, mistakes, and making a living. She focuses on what it’s like being in debt, living paycheck to paycheck, and surviving unemployment while also offering advice and support for others in similar situations - including a FREE library of career & job search resources.