ZOOM

Analysis of Zoom share price

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Before embarking on a stock market investment on the Zoom share price, you must first of all have the knowledge essential to the analysis of this value. This is why we now offer you the opportunity to discover all the data you will need in this respect with the precise activities of this American company, its main competitors, its recent partnerships or its major strengths and weaknesses. We will also look at fundamental analysis and general stock market data.

Latest news

Zoom: solid results in the second quarter of 2021

06/09/2021 - 08h41

Video conferencing company Zoom exceeded all expectations in the second quarter of 2021. It posted better results. However, the group remains cautious in its outlook for the new quarter

Elements that can influence the price of this asset:

Analysis N°1

First of all, we will follow the development of Zoom's international market, which is notably developing its activities in China with very strong growth, and in India, which remains a very promising market with an increase in demand to come.

Analysis N°2

The Group's strategic decisions and changes concerning the acquisition of new customers or the retention of existing customers is also an element to be monitored.

Analysis N°3

The partnerships that the group is likely to set up with other large companies in order to enhance the value of its services or to reach a wider target are also interesting indicators of the likely growth of its activities.

Analysis N°4

We will also keep an eye on the competition in this sector of activity, which is increasingly popular with technology companies.

Analysis N°5

Finally, research and innovation are, of course, at the heart of Zoom's growth strategy and we will follow the company's technological advances over time.

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General presentation of Zoom

We now propose you to discover a little more information about Zoom company with its main activities but also the different markets on which it operates.

Zoom Video Communications Inc. is an American company specializing in the technology sector. More specifically, Zoom is a specialist in the provision of teleconferencing and videoconferencing services.

As such, it operates a remote communication platform that combines videoconferencing, voice, audio, screen sharing, chat functionality and other services. This platform is accessible on desktop computers as well as on mobile devices such as tablets and phones.

It is also interesting to know the geographical distribution of Zoom's activities. This company achieves 80.4% of its turnover in America, 11.4% in Europe, Middle East and Africa and 8.2% in Asia Pacific.

Analysis of Zoom share price
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The major competitors of Zoom

Let's now discover Zoom's competitive environment with a presentation of its main competitors on the market:

Webex Communications Inc

This American company offers videoconferencing and web conferencing software services on demand. It belongs to the Cisco group and markets in particular the Meeting Center, Training Center, Event Center, Support Center, Sales Center, Webex Office and Webex Connect software.

Microsoft 

The American group Microsoft also operates a proprietary collaborative communication application since 2016 and called Microsoft Teams. This application integrates with the Microsoft Office 365 suite and Skype and offers extensions that can be integrated with other products. This platform is available in 25 languages and in 181 countries.

Google 

Of course, the giant Google also has its own video conferencing service, Google Meet, which replaces Google Hangout. Initially launched as a commercial service, Google Meet was offered free to users during the containment period due to the coronavirus crisis in April 2020 in a consumer version.

Adobe 

Finally, Adobe also offers Adobe Connect software that provides online conferencing and is either sold or rented to users. It offers online meetings but also e-learning and the creation of usable interactive content. Note that this software was developed by Macromedia under the name Breeze and was acquired by Adobe in 2005.


The major partners of Zoom

After a tour of Zoom's major competitors, let's move on to the partnerships that the group has recently set up and which have led to a rise in its share price on the stock market.

Manchester City

In particular, Zoom has signed a partnership with Manchester City and has thus become the club's official partner in the field of video communications. In return, the American company will benefit from high visibility during the club's events, including a display at the Etihad Stadium.

Logitech

Another interesting partnership has been the one Zoom has set up with the Logitech company. Indeed, this alliance now allows Logitech customers to transform small, medium and large meeting rooms into Zoom Rooms thanks to a feature that allows them to start meetings at the touch of a button, as well as wireless content sharing via direct and wired HDMI. The solution also allows control in the centre of the room. This pre-configured system includes everything a company needs to set up a Zoom Room video conference, including a Logitech Zoom Certified ConferenceCam and its holder, a mini-PC and cable bundling mount and the Logitech Tap touch controller.

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The factors in favour of a rise in the Zoom share price:

If you plan to invest in Zoom shares and wish to know how this company may evolve economically over the coming years then you will need to know and understand its principal strengths and weaknesses. In this article you can learn about the strong and weak points of this company. First of all, concerning the advantages of the Zoom Group in effectively facing competition in this sector we note the following factors:

  • Firstly we note that the application developed by Zoom particularly stands out due to its simplicity of use. This company aimed to provide a video communications solution that was fluid in its use and succeeded in creating an online conferencing solution that is both simple and straightforward to use. The use of the application requires no installations or account and anyone can join a conference or meeting. This application is also easy to setup and install when necessary and is therefore an innovative and extremely useful service for all types of users.
  • Another undeniable advantage from which the Zoom Company and its software benefits relates this time to the interest shown in client satisfaction through the development of certain options and functions. This notably concerns the possibility of using a virtual background from this software, a function that has proved extremely popular with clients. This innovative function actually enables the user to display an image or even a video in the background of a meeting which gives a more pleasing aspect and can also thereby enable the real environment of the user to be hidden.
  • Still relating to the advantages of the Zoom Group we can also mention the superior international expansion strategy of this company. In fact, regarding the company’s turnover for the 2019 financial year in the APAC and EMEA areas that account for 19% of the total turnover we can observe that this expansion strategy is a clear success. Zoom actually operates research and development centres in China with over 700 employees. We can also note a strong growth in technological start-ups in India which overall raised a total of 14.5 billion dollars in 2019, representing 25 times more than since 2010. This obviously creates an increased demand for reliable conference solutions. The Zoom Group has also expanded its Zoom Phone service in 11 European countries and added supplementary multilingual guests which offer their services to the growing number of public users around the world.
  • Finally, the ‘Freemium’ strategy implemented by the group at its beginning was judicious as it greatly simplified the acquisition of Zoom clients. This strategy based on free basic services enabled Zoom to enter a market already crowded with competitors offering online conference services. In fact, this free service has encouraged people to join this platform and become used to it thus enabling Zoom to transform them into paying clients and seize certain opportunities for promoting sales.
The factors in favour of a drop in the Zoom share price:

Although it is clear that the Zoom Group benefits from certain significant advantages it also has certain weak points that we shall now examine:

  • Firstly we note a particular weak point in this web application that is often pointed out by its users relating to the fact that it does not ensure end to end encryption. This in fact was revealed in an announcement made in the beginning of 2020. The Zoom application currently uses a TLS connection for the encryption which means that the messages and content of the meeting are encrypted between the user’s device and the Zoom server. When a user attends a meeting Zoom can access the unencrypted content of the meeting. This is why certain top range companies and entities such as Google and Nasa have forbidden the use of this software.
  • The competition in the online internet conferencing services market is also very strong and the functions developed by Zoom’s adversaries are often roughly equivalent to theirs. We also note however that the direct competitors to Zoom are mostly the older communications systems such as Cisco Webex, GoToMeeting and the grouped production services such as Google Meets or Microsoft Teams. These competitors also often notice new Zoom functions and develop similar functions thereby leaving the final choice to the users.
  • Finally, the last disadvantage that we note here relating to Zoom concerns its growth possibilities. In fact, it was actually during the Covid-19 pandemic that the group significantly achieved success due to the increase in people working from home. It is at present impossible to confirm if this successful growth will continue over the long term once this health crisis has ended.
The information supplied here is only for indicative purposes and should not be used without the completion of a comprehensive and complete fundamental analysis of this asset notably taking into account exterior data, future publications and announcements and all fundamental events and news that could influence the strengths and weaknesses or make them more or less significant. This information does not in any way constitute recommendations relating to the completion of transactions.

Frequently Asked Questions

Who are Zoom's major private shareholders?

Zoom Video Communications Group is partly owned by private shareholders including Artisan Partners for 6.13%, Hilhouse Capital Advisors for 5.89%, Bin Yuan for 4.21%, Morgan Stanley Investment Management for 4%, The Vanguard Group for 3.30%, T Rowe Price Associates for 2.45%, Salesforce Com for 2.37%, Fidelity Asset Management Canada for 2.34%, Comprehensive Financial Management for 2.26% and Baillie Gifford for 2.10%. The rest of the group's capital is floating and therefore freely traded on the market.

When and how was Zoom created?

Zoom was founded in 2011 by Eric Yuan, an engineer from Cisco Systems and its WebEx collaboration business unit. Launched in January 2013, the service quickly met with success and the company created numerous partnerships with BtoB software providers such as Redbooth. Since its inception, the company has steadily gained market share and accelerated its growth to become the global company it is today.

When did Zoom go public?

Zoom Corporation filed for NASDAQ listing in March 2019 and went public on April 18 of that year with shares that rose over 72% after an initial public offering of $36 per share. In only one year, this share has managed to reach $160. Note that the company's growth boomed in early 2020 against the backdrop of the Covid-19 pandemic.

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