​ Zoom Video Communications #ZM #Cases Term - from 1 year | Investor's sight: Stocks, Crypto, NFT

​ Zoom Video Communications #ZM
#Cases

Term - from 1 year
Potential return - 113%

◈ Description of the business and its prospects

Zoom Video Communications, Inc. is engaged in providing a communication platform for video. The company connects people with easy-to-use video, voice, chat, and content sharing, and provides face-to-face video calling to thousands of people in the same meeting across multiple devices and locations. The company was founded by Eric S. Yuan in 2011 and is headquartered in San Jose, California.

◈ Technical analysis comments

ZM papers are being squeezed to a strong support level as part of a downtrend. In addition, the paper is quite heavily oversold. The $100-$110 price level is great for long-term buying.

◈ Fundamental analysis

For the 4th quarter of 2021, the company received the following results: revenue was $1,071 million, which is 21.4% more than a year earlier. GAAP net income was $261 million, or $0.91 per share, compared to $15.3 million and $0.06 per share in the fourth quarter of 2020. The company, providing video communications during a pandemic, has grown significantly in 2021. The company's shares are trading at a discount, due to a somewhat vague outlook. We can expect Zoom to expand its product line and introduce new services and devices, but so far these are just unconfirmed opportunities.

The company's multipliers also look quite interesting. The company trades at 10 annual revenues. P/E and EV/EBITDA multiples are 32.1 and 34.5, respectively. Compared to the sector and competitors, Zoom looks a lot cheaper, especially given that the company is consistently profitable. The company manages its debt perfectly, liquidity indicators are at an optimal level. In addition, net profit margin is 33.6%, which is quite high for IT companies.

The essence of the idea
The idea is long-term in nature, stop loss is not set for this idea. The company's papers can actively start to grow with a new round of the business cycle. The targets for this idea are at the $140, $160, $210 and $250 levels.