Though Zoom has held its own well against the tech behemoths offering, Microsoft may have the edge when it comes to a shift into the metaverse. Microsoft Teams is a top competitor of Zoom. However, its hard to tell just how sticky such users are, as companies like Apple, Microsoft ( MSFT), and Alphabet ( GOOGL) set their sights on taking share in the world of video conferencing. Zoom has a brilliant platform and many loyal enterprise users that it can upsell. A firm like Zoom still has plenty to invest, but I think its safe to say that size is a larger advantage when credit isnt so easy. With its massive share buybacks, the company has so much cash that it can do nearly anything it desires, including disrupting parallel markets. As interest rates rise, the odds are likely to be tilted towards the disruptive tech behemoths (think the FAANG stocks) and away from smaller, albeit still large, firms like Zoom.ДЄ company like Apple ( AAPL) is rich with cash. Indeed, wide moats are needed to stave off competition. While Zoom has done a great job of expanding its lineup beyond just its flagship video service (think Zoom Phone and Zoom Rooms), I dont view Zoom as having any products with a moat. However, Zooms competitors are pretty scary and could pressure its margins over the coming years. Now, Zoom may still be a best-in-breed platform for various remote, hybrid, and even on-site workforces. Zooms Video-Conferencing RivalsВ Could Get Stronger as Rates Rise This means that the stock is not very likely to outperform the overall market, according to this metric. Interestingly, Zoom has a 5 out of 10 Smart Score rating on TipRanks, also implying a neutral rating. Therefore, I am neutral on ZM stock due to valuation and competition concerns. Investors got way too euphoric with the name, and despite the magnitude of the decline, shares arent exactly a bargain at over 24 times trailing earnings. While remote and hybrid work is likely here to stay, its clear that the valuation compression in ZM stock was needed. Zoom Video stock is a prime example of why its dangerous to chase high-momentum stocks or get too euphoric on trends.

Despite the severity of the meltdown, shares are still not at three-year lows. At writing, the stock is just nearly 83% from its 2020 all-time high. ZM shares have endured one of the most painful crashes of the pandemic winners. However, many firms have taken notice, and theyve been eager to make a splash in video conferencing. It may have been the go-to offering when pandemic lockdowns swept the world. While video-conferencing company Zoom Video Communications ( ZM) is still on the right side of the digital transformation secular trend, Zoom is not the only name in town.

Zoom video stock price today