Zoom Stock Price (ZM)

The Tradu Zoom stock trading guide

What are Zoom stocks?

Zoom (or ZM) stocks are company shares available for public trading via the Nasdaq Exchange.

Zoom's video conferencing platform was founded in 2011, but it wasn't until 2019 that the company first turned a profit. This was also the year that Zoom's shares were first made available to the public at an IPO of $36.

In 2020, when the pandemic caused the world to rely on online communications, Zoom's user-friendly interface and software excelled. The meteoric rise of Zoom was unprecedented as it became the go-to for remote communications for hundreds of millions of people stuck at home.

Zoom's headquarters is in San Jose, California, and the firm has plans to expand its operations as it attracts bigger, higher fee paying clients. Its number of customers paying more than $100,000 rose by 66% YOY in 2022. The company achieved revenues of $4.4 billion in 2022, a 55% increase from the previous year. However, with the easing of Covid-19 and more people going back into the office, the firm lowered its 2023 annual revenue expectations by $15 million.

Historical performance of Zoom stocks

While the Zoom share price remained stable during its first official year of trading, the company saw this price rise significantly the year after, peaking in October 2020. However, the fall in demand post-pandemic caused the firm's price to drop, in line with other markets.

After its annual sales forecast was cut, its slowest quarterly growth was announced, and the workforce was reduced by 15%. The company is now trying to reinvent itself by focusing predominantly on businesses, introducing new products such as Zoom Rooms. The price of Zoom stocks as of August 2023 stood between 60.45 USD and 89.67 USD.

What influences the price of Zoom stocks?

Similarly, to other major company stock, the ZM stock price today can be influenced by several different factors:

• Global events: The Covid-19 pandemic played a huge role in the rise of Zoom's video conferencing platform. Large-scale global events can influence supply and demand of various products, including those within the tech industry. And this can cause uncertainty and volatile share prices.
• Safety and security: The storage of personal data, billing addresses, phone numbers and location whereabouts is done by software giants with the consent of the user. Any privacy and security concerns can severely impact an organisation's reputation, with bugs and the risk of hacking potentially causing fallout for the platform if correct procedures are not applied.
• Company reports: Reports, announcements and other news published by the company can have an influence on the value of the ZM share price. Reports of rises in growth and profit can, in turn, cause a rise in Zoom stock prices. However, news of staff redundancies, poor working conditions and lack of performance can cause a decline.

How can I trade Zoom stocks?

With Tradu, you can begin trading Zoom stock using financial derivatives, meaning you don't need to own the underlying asset. The main method is:

• CFDs: Contracts for difference (CFDs) enable you to buy or sell a contract depending on whether you think the value will increase or decrease. You'll either make a profit or loss that amounts to the difference in Zoom stock price between the opening and closing of the trade.

This trading method is executed using leverage, so you'll be able to increase your market exposure and open a position with a smaller deposit. However, it's important to be aware that using leverage can magnify your losses.

How to invest in Zoom stock

In contrast to financial derivatives, investing in Zoom stocks means you'll take ownership of the underlying asset. This way, you'll be taking a long-term approach, buying Zoom stock with the hope that you'll see a rise in the share prices so you can make a profit. To do this, simply add funds into your Tradu account and choose how much you'd like to invest.

Please note that you cannot use leverage when trading stocks directly. You will own the underlying asset, meaning there may be fewer opportunities to profit, particularly in bear markets.

Benefits of trading Zoom stocks

• Market leader: Zoom remains one of the leading video conferencing platforms, making the business highly profitable. You'll be gaining exposure to a top global company.
• Leverage: You can potentially maximise your capital by opening a position with a much smaller deposit when using leverage. But you can be left at risk of a greater loss if your trade goes against your prediction.
• Trade during bull and bear markets: The stocks of successful companies can often rise and fall when least expected. With ZM stocks, you can take advantage of these markets using financial derivatives.

Drawbacks of trading Zoom stocks

• Leverage risk: While leverage can be used to your advantage, it can also leave you at risk of magnified losses.
• Market fluctuations: Volatility and changes in the market are beyond your control. With many factors affecting the Zoom stock price, it can be difficult to predict values and movement directions.
• Limited portfolio: Limiting your trades to just one company's stock can restrict your market exposure. That's why many traders find it more profitable to trade across a range of markets.

How to start trading Zoom stocks with Tradu

• Open an account: Create an online account to start trading with us today.
• Choose a strategy: Your strategy is dependent on your trading goals, risk tolerance, preferred markets and available capital.
• Research performance: Gain deeper insight into Zoom share prices and historical data before using technical analysis to increase your trading opportunities.
• Execute your position: Place your trade using CFDs. Limit your losses by utilising our risk-management tools, then monitor and close your position.
• Learn more: Our range of resources is designed to expand your knowledge and increase your market exposure.
• Diversify your portfolio: Broaden your portfolio by trading across multiple markets, including indices, crypto, forex, and commodities.

With Tradu you can trade crypto via CFDs or you can own real crypto where you take ownership of the underlying asset.