Market News

Zoom Hires New President to Support Product Transformation

Story Highlights

Zoom appoints Google Cloud executive Greg Tomb as its new President as the company continues transforming into a multi-product platform. 

Zoom Video Communications (NASDAQ: ZM) has announced the appointment of Greg Tomb as its new President effective June 7, 2022. With a rich experience of over 20 years, Tomb is coming from Google Cloud, where he most recently served as Vice President of Sales, Google Workspace, SMB, Data & Analytics, Geo Enterprises, and Security Sales.

Prior to Google, Tomb worked at SAP and also served as the CEO of Vivido Labs Inc. Currently, Tomb is on the Board of Directors of Pure Storage Corporation.

Responsibilities of the New President

Tomb will be reporting directly to Zoom’s CEO Eric S. Yuan and will oversee the company’s go-to-market strategy, revenue efforts, and office of the Global Chief Information Officer.

Tomb will help Zoom in its transformation into a multi-product platform for communication, hybrid work, and business workflows.

Last week, Zoom appointed Matthew Saxon as its Chief People Officer. Saxon most recently worked as Vice President of People Operations at Meta Platforms (FB).

Analyst Ratings

Recently, Daiwa analyst Stephen Bersey double upgraded Zoom to a Buy from Sell, and increased the price target to $121 from $107 as he feels that the pullback in the stock offers an attractive entry point.

Bersey noted that Zoom’s recent results reflect “solid execution” and there is slightly more positive belief that its core business is stabilizing.

Bersey also believes that Zoom’s outlook “is likely to calm investor concerns about the potential for further top-line deceleration.”

All in all, the Street is cautiously optimistic on Zoom stock with a Moderate Buy consensus rating based on eight Buys and 13 Holds. Zoom’s average price target of $125.84 implies 13.36% upside potential from current levels. Shares have plunged nearly 40% amid a broader tech sell-off.

Conclusion

Zoom delivered unprecedented growth rates earlier in the pandemic. With the COVID-led tailwinds fading, Zoom’s growth rates are normalizing. The company is now strengthening its management team and attracting customers with its newer tools like Zoom Phones, Zoom Events, and the Zoom Contact Center.

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