Market News

Zoom Steps Up Its Game as Professionals Return to Work

Story Highlights

Can Zoom’s new offering help the company expand its user base amid a slowdown in online meetings as professionals return to work? Let’s find out.

Communications technology company Zoom Video Communications, Inc. (NASDAQ: ZM) has revealed its new offering, Zoom One. Further, the company has launched a translated and multi-language captions feature.

Shares of the company rose 2.2% to close at $117.67 on Thursday.

The new Zoom One offering will bundle chat, phone, meetings, whiteboard, and more in a single package, making it convenient for the customers. The package will have six offerings — Zoom One Basic, Zoom One Pro, Zoom One Business Plus, Zoom One Enterprise, and Zoom One Enterprise Plus.

Zoom One Business Plus and Zoom One Enterprise Plus customers will get the additional feature of translated captions that will allow users to view captions translated into the language of their choice. Initially, the translation feature will be available in English and 10 additional languages, including Spanish, Chinese, and French.

Management’s Take

The President of Zoom, Greg Tomb, said, “As the Zoom platform has evolved from a meeting app to a comprehensive communications platform, it was clear that introducing new packaging like Zoom One was the next step in the company’s evolution. By bringing together chat, phone, meetings, whiteboard, and more in a single offering, we are able to offer our customers solutions that are simple to manage, so they can focus on business issues that matter most.”

Investors’ Sentiment

TipRanks’ Stock Investors tool shows that investors currently have a Very Positive stance on ZM, as 5.1% of top portfolios tracked by TipRanks increased their exposure to ZM stock over the past 30 days.

Website Traffic

TipRanks’ Website Traffic Tool, which uses data from SEMrush Holdings (SEMR), the world’s biggest website usage monitoring service, offers insight into Zoom’s performance this quarter.

According to the tool, the Zoom website recorded a 2.05% monthly rise in global visits in May, compared to April. However, the footfall on the company’s website has declined 20.49% year-to-date, compared to the previous year.

The somewhat weaker website traffic can be attributed primarily to the reopening of economies and the return of professionals to offices.

Bloggers are Bullish

TipRanks data shows that financial bloggers are 75% Bullish on ZM, compared to the sector average of 63%.

Stock Rating

Overall, the Street is cautiously optimistic about the stock and has a Moderate Buy consensus rating based on eight Buys and 12 Holds. ZM’s average price target of $127 implies that the stock has upside potential of 7.9% from current levels.

Conclusion

The gradual return of the corporate employees to offices has hurt Zoom’s prospects a bit. However, given that online meetings are convenient and they are here to stay, the launch of a bundled feature like Zoom One can help the company gain new users.

Disclosure

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