[ad_1] The post Zoom Stock Forecast 2025 appeared first on Millennial Money. Few companies became inadvertent beneficiaries of the COVID-19 pandemic like Zoom Video Communications (NASDAQ: ZM). The videoconferencing specialist became a household name seemingly overnight as the crisis forced people to shift to remote working and learning. As a result of the skyrocketing engagement that led to stellar growth, the stock soared by nearly 400% in 2020. Expectations for future growth remain high, with shares currently trading at around 133.6 times earnings. The stock is currently priced at approximately $387, meaningfully below its all-time high of nearly $589. Wall Street analyst price targets range from $242 to $525, while the average valuation estimate sits at $401.84. Zoom Video Communications (NASDAQ:ZM)Price: $386.48 (as of close Jul 1, 2021)Market Cap: 113,874,699,894 document.addEventListener(“DOMContentLoaded”, function(event) { Highcharts.stockChart(“stockChart-db8f559bae61eee00404bf69d800930c”,{rangeSelector:{selected:1},title:{text:”Zoom Video Communications (NASDAQ:ZM)Closing Stock Price”},subtitle: {text: “30-Day Historical Data”},navigator: { enabled: false },scrollbar: { enabled: false },credits: { enabled: false },xAxis: { type: “datetime”, labels: { formatter: function() { return Highcharts.dateFormat(“%m %d, %Y”, this.value); }}},colors: [“#118b4e”],rangeSelector : { enabled: false },series:[{name:”NASDAQ:ZM”,data:[[1622520000000,327.72],[1622606400000,327.11],[1622692800000,319.01],[1622779200000,336],[1623038400000,342.66],[1623124800000,341.26],[1623211200000,333.63],[1623297600000,346.5],[1623384000000,366.4],[1623643200000,365.91],[1623729600000,359],[1623816000000,361.83],[1623902400000,372.95],[1623988800000,374.24],[1624248000000,369.25],[1624334400000,374.65],[1624420800000,376.92],[1624507200000,373.4],[1624593600000,372.47],[1624852800000,388.86],[1624939200000,394.73],[1625025600000,387.03],[1625112000000,386.48],],tooltip:{valueDecimals:2,xDateFormat: “%A, %B %e, %Y”}}]}); }); Zoom Stock Forecast 2021 Keep in mind that Zoom’s fiscal years don’t line up exactly with calendar years. The company’s fiscal 2021 just closed at the end of January, with fiscal 2022 currently underway. The estimates below represent fiscal years. Zoom’s revenue in fiscal 2021 soared 326% to $2.65 billion, with large enterprise organizations being a critical growth driver. The number of customers that generate over $100,000 in trailing 12 months (TTM) revenue climbed 156% to 1,644 at the end of last fiscal year. This metric climbed again to 1,999 in the fiscal first quarter. Importantly, many enterprises have now recognized the benefits of remote working and hybrid models and aren’t going back to pre-pandemic behaviors. The pandemic has ushered in a new productivity paradigm, one that will incorporate Zoom’s services for the long haul. Thanks to the strong momentum, Zoom recently raised its full-year guidance for fiscal 2022 (comparable to calendar 2021). The company now expects revenue this fiscal year to be $3.98 billion to $3.99 billion, up from the prior forecasted range of $3.76 billion to $3.78 billion. Adjusted earnings per share (EPS) should be $4.56 to $4.61. Wall Street is looking for more, with the consensus estimate for adjusted EPS currently sitting at $4.68. Zoom shares are trading at 83.1 times fiscal 2022 estimated EPS. Zoom Stock Forecast 2025 Wall Street expects Zoom’s run to continue, with revenue expected to approach $9 billion by fiscal 2026. That would represent a compound annual growth rate (CAGR) of 17% over the next five years. Here are the sales analysts are modeling for. Year Revenue YOY Growth 2022 $4 billion 51% 2023 $4.79 billion 20% 2024 $5.62 billion 17% 2025 $7.31 billion 30% 2026 $8.78 billion 20% Data source: S&P Global Market Intelligence. Fiscal years shown. In terms of the bottom line, adjusted EPS is forecasted to more than double from fiscal 2021 levels of $3.34. Year Adjusted EPS YOY Growth 2022 $4.68 40% 2023 $4.72 1% 2024 $4.95 5% 2025 $6.47 31% 2026 $8.04 24% Data source: S&P Global Market Intelligence. Fiscal years shown. Zoom started to enjoy significant operating leverage in 2020, allowing profits to explode while still giving the company plenty of money to invest in its technology. That leverage will continue if Zoom can maintain its trajectory. Pick Like A Pro Where to invest $500 right now Before you buy Amazon, or Netflix, or Apple, consider this… The team at Motley Fool first recommended each of those stocks more than a dozen years ago! They discovered Netflix for $1.85 per share, back in the days of DVDs by mail. And recommended Amazon at $15.31 in 2002, before most people were comfortable using credit cards online. And even hit Apple at $4.97 per share, about a month before the release of the very first iPhone. Check out where those stocks are today. 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Please read our Privacy Statement and Terms & Conditions. window.onload = function(event) { if (!document.getElementById(‘ecap-async-js’)) { dataLayer.push({‘event’ : ‘ctaFailed’, ‘failType’ : ‘JS Enqueue Failure’ }); } } Click here to learn more .tmfsa-text-widget .ecap-widget { padding: 0 !important; border-left: 0 !important; } Zoom Stock Forecast 2030 As always, long-term forecasts face greater uncertainties since the future is difficult to predict. That’s especially true in the technology sector, where things can change at the drop of a hat. That being said, Wall Street’s models can still be useful in setting investor expectations. Analysts believe that Zoom could generate nearly $20 billion in revenue in fiscal 2031. Year Revenue YOY Growth 2027 $10.44 billion 19% 2028 $12.32 billion 18% 2029 $14.42 billion 17% 2030 $16.72 billion 16% 2031 $19.23 billion 15% Data source: S&P Global Market Intelligence. Fiscal years shown. Top line growth will lead to soaring profits. Year Adjusted EPS YOY Growth 2027 $9.79 22% 2028 $11.86 21% 2029 $14.16 19% 2030 $16.94 20% 2031 $20.00 18% Data source: S&P Global Market Intelligence. Fiscal years shown. Zoom Bull Case Even as Zoom is coming off a year of astronomical growth due to the pandemic, there are plenty of upside opportunities for the company to pursue. Zoom hopes to disrupt traditional teleconferencing solutions, including legacy