How to Buy Zoom Stock 

How To Buy Zoom Stock: In a world that gets smaller every day, people everywhere need ways to communicate securely on high-quality channels.

From voice solutions to video offerings, it takes special technologies to bring everyone together, across their different devices and the technologies they use to connect. Zoom (ZM) builds frictionless face-to-face and content sharing solutions. It may also be a good investment for the right investor.

Zoom This Stock into Your Portfolio

Zoom as a communications platform is video-first, but it does more than live stream face-to-face conversations. There is also chat functionalities and content sharing functions built into the cloud-native platform. In some ways, Zoom is “better than in-person meetings” – or at least, that is the company’s goal.

Here is a brief overview of Zoom’s most significant products:

–       Zoom Meetings: their core video conference offering

–       Zoom Rooms: a conference room system

–       Zoom Phone: PBX and cloud-based telephone system

–       Zoom Video Webinars: for large-scale events up to 10,000 attendees and 100 panelists (only the panelists appear on video; participants are view-only)

The company also offers an App Marketplace, a Conference Room Connector, and Zoom for Developers that leverages APIs and SDKs.

For the most part, Zoom positions itself as a collaboration tool – and it has an impressive client roster. Uber uses Zoom’s services as does HubSpot, NASDAQ, CareerBuilder, Box, 21st Century Fox, and Columbia Business School.

Case studies on the way those companies and organizations use Zoom all detail the two things that matter most in their industry – it is easy to use, and it works well.

One statistic worth mentioning is that the Zoom platform can continue to stream a meeting even if one of the parties loses 40% of their connection.

Zoom also has some integrations that make it extra convenient, like calendar integration or synchronizing with the available equipment in a conference room.

Is Zoom Stock a Buy?

The market for video conferencing services is massive and growing. According to Fortune Business Insights, the global video conferencing industry was over $3 billion in 2018.

By 2026, it is expected to swell to almost $6.4 billion – that is more than 200% growth in eight years. The reasons for such a high rate of growth are myriad.

Companies enjoy video conference options because they are significantly cheaper than traditional business travel and faster. Being able to connect with colleagues and customers around the world at the click of a button is convenient and cost-effective.

These features also put video communications in the reach of even the smallest businesses, whereas business travel, especially to far-off destinations, is normally left to the most well-funded companies.

In this way, video conferencing is a great equalizer in the world of business – but the advantages of video communication is not limited to commerce.

Many organizations use video capabilities to form digital classrooms, interview job candidates, practice medicine, or monitor smart factories. Video conferencing makes it easy to relay information and it can build trust between participants in a way that connecting over email or even a phone call just doesn’t.

What to Know Before Buying Zoom

That said, there are some things to know before investing in a company like Zoom. One issue is the ability for Zoom to attract new paying customers to its service plans.

The business does offer users a limited use plan that is completely free. Participants can join by video or call in, hosts can record conversations, and there is screensharing all included.

The free Zoom plan also allows unlimited one-on-one meetings and group meetings with up to 100 participants. Group meetings are limited in time; the max is 40 minutes. In order to do more than these basic video chats, at least one of the participants would need to have a paying account.

Upgrading lets users increase the duration of group meetings and can include a vanity URL. There are some additional branding benefits as well as scheduling and admin features that come with premium subscriptions, but many users will be fine with the free option, which is a real problem for the company – will it generate enough income from its premium subscribers to be profitable? Further, will the company be able to retain those customers?

Investors need to keep in mind who is competing against Zoom. Google and Skype have video functionality built right in. Many users will have a longer history on those platforms and the cost is generally less.

For instance, Skype is free for up to 50 people and, like Zoom, requires no downloads to use. It can also leverage Amazon’s Alexa to make calls, just like Zoom. However, Skype offers certain extra features, like real-time translation (Zoom only offers transcripts) and Cortana integration (Microsoft’s virtual assistant can recommend things based on your chat, like a movie review).

To be successful, Zoom needs to win paying subscribers over these companies that may be able to do more for less cost to subscribers.

Furthermore, there are company considerations. Zoom has been compromised in the past. There is always a risk that its security measures will fail again.

Zoom also has some financial concerns. It has only issues three quarterly reports to date and two of them showed a net income loss. Then, even if Zoom stays fiscally safe and keeps its data secure, the company still needs to manage its growth well – and not many growing companies know when to hold.

Open a Brokerage Account

If you think Zoom is the answer, you will need a brokerage account to buy stock in the company. It is very easy to open your own trading account.

The process usually takes minutes online. Once your transfer is processed, you are ready to go. Look to companies like TD Ameritrade or E*TRADE as well as your own bank.

Depending on which one you choose, there may be different fees, promotions, or minimum opening amounts. There are many options out there. Do your research.

Place a Buy Zoom Stock Order

To buy Zoom stock, you will need to place a stock order to actually purchase the shares. You will have two options, so be careful to choose the one you want.

A market order allows you to purchase share in a company as soon as they are available. Many times, the price changes marginally between when you hit the “buy” button and your transaction is processed – but not all the time. Sometimes, the share price could swing wildly.

You can prevent this from happening by choosing a limit order. This specifies that you are would like to buy the stock but only if you can get each share for less than a specific amount. Limit orders help prevent the share price from changing too much before your order is processed.

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The author has no position in any of the stocks mentioned. Financhill has a disclosure policy. This post may contain affiliate links or links from our sponsors.