From Nasdaq: 2025-02-20 15:00:00

Zoom Video (ZM) is set to reveal its fourth-quarter fiscal 2025 results on Feb. 24, with revenue expectations between $1.175 billion and $1.18 billion. Earnings per share are anticipated to be $1.29-$1.30. The company has a positive earnings surprise history, beating estimates in the last four quarters.

Investors should note Zoom’s premium valuation, with a 3-year forward 12-month price-to-sales ratio of 5.44. The stock has outperformed the Computer and Technology sector but faces competition from Microsoft Teams, RingCentral, and Cisco Webex. Maintaining technological edge and customer value will be crucial for Zoom’s future growth.

Zoom presents a balanced investment case, showing signs of stabilization with 3.6% revenue growth in the fiscal third quarter. The company’s transformation into an AI-first work platform is promising, although AI investments are impacting margins. With strong financials and competition challenges, investors may consider holding positions or waiting for a better entry point.

Looking ahead, Zoom’s recovery is gradual, signaling cautious optimism. The company’s growth projections, ongoing AI investments, and competitive landscape require close monitoring. Current shareholders may benefit from a wait-and-see approach post-earnings, while new investors could find opportunities post-earnings clarity on AI adoption rates and new product performance.



Read more at Nasdaq: Zoom Video Q4 Earnings Preview: Buy, Sell or Hold the Stock?