How to Buy Zoom Stock in 2024

Zoom is used to organize online webinars, live chats, work conferences, and more. People can invest in this popular cloud-based video communications platform via a creditable online broker.

In this guide, we explain how to buy Zoom stock with a regulated stock trading platform in 2024.

This will also encompass a full analysis of the most popular places to research and buy Zoom stocks with low fees, alongside some fundamentals about the company and its performance on the NASDAQ.

Importantly, once the trading order is complete, Zoom stock will be added to the list of invested assets within the account holder’s portfolio.

Step 1: Choose a Stock Broker

Below is our full analysis of the most popular trading platforms. We’ve explored every aspect of these online brokers, which will be helpful for traders keen to know how to invest in Zoom stock at very little cost.

This includes everything from fees and supported deposit types, to asset variety, useability, features, and regulation.

1. Capital.com

Capital.com is a popular option for short-term traders who want to leverage their positions. This is because Capital.com is a CFD platform. Notably, this broker isn’t suitable for US traders looking to buy Zoom stock, as CFDs have been banned in the country.

Nonetheless, most other nationalities can create an account at Capital.com and will be tasked with speculating on the rise or fall of Zoom stock, rather than buying it. To go short on falling stock prices, a sell order needs to be placed.

On the other hand, if the trader thinks that Zoom stock will go up in the near future, they should create a buy order to go long.

This is mostly because CFDs attract overnight financing fees, which need to be paid every day the position is open. The short-position overnight fee for Zoom CFDs is 0.0059% each day. The long-position is charged at 0.0064%.

There are 5,000 stock CFDs and all can be traded without commission, which only leaves the spread. At the time of writing, the spread on Zoom is 0.9 points.

Traders wanting to make a small deposit using a bank wire transfer may wish to consider another broker as Capital.com requires a minimum of $250. This drops to $20 when funding an account with e-wallets and credit/debit cards.

78.91% of retail investor accounts lose money when trading spread bets and/or CFDs with this provider.

2. Webull

For US traders wishing to buy Zoom stock on a tight budget, Webull is a potential option. This platform makes it possible to invest $5 or more in fractional stocks. Additionally, there are no trading costs associated with investing in any of the US-listed companies found here.

As a result, commission-free trading is available for Zoom stock. Webull provides many IRAs in addition to the typical cash and margin accounts. IRAs allow investors to buy stocks via a retirement account.

Do note that in order to qualify for a margin account when buying Zoom stock, traders must have a minimum balance of $2,000. There are some non-US equities available as ADRs at Webull. However, keep in mind that there will be a fee of between $0.01 and $0.03 on each transaction.

There is no minimum deposit requirement at Webull. There is an $8 wire transfer fee for deposits and $25 on withdrawals. ACH deposits are fee-free but can take a few business days to appear in the trader’s account. Webull offers a customizable workstation and a free mobile app. This allows traders to buy Zoom stock while on the go.

Step 2: Research Zoom Stock

It’s important that traders familiarize themselves with every aspect of a company prior to investing.

Moreover, there will be varying opinions on where Zoom stock might be headed. However, people should invest based on their own findings.

That said, the information included below should offer some useful insight into Zoom stock history.

We also talk about what the company does, and how it has performed financially in previous quarters. Traders will also find sell-side Wall Street analyst ratings on Zoom stock.

What is Zoom?

Zoom is a US-founded company that has been around since 2011. The company was founded by Eric Yuan. Zoom is a video platform that allows people and businesses to communicate with each other in a video conferencing setting.

In 2016, Zoom was recognized by Forbes magazine as one of the 100 world’s most popular cloud companies. The firm became more well-known than ever in 2020.

During this period, the COVID -29 pandemic progressively reached more corners of the world. Due to lockdowns imposed to try to prevent the spread, many people were unable to work outside of their homes and thus – were unable to see family and friends for some time.

This is where Zoom really came into its own. In fact, the company became synonymous with one-on-one and group video calling. In 2020 alone, the Zoom app was downloaded almost 500 million times.

In the first quarter of 2022, the company reported approximately 36.5 million downloads in the Asia-Pacific region alone.

Zoom Stock Price – How Much is Zoom Stock Worth?

Zoom became a publicly listed company in April 2019. Zoom stock finished the trading day at $62. By the start of 2020, the stock was around $67. However, as the COVID-19 pandemic spread rapidly on a global scale, Zoom stock began to soar.

At the start of 2020, a large number of investors set their sights on stay-at-home stocks that would almost definitely benefit from increased sales. As we’ve mentioned, Zoom is a communications platform that allows individuals and businesses to connect via video, chat, phone, and audio.

As such, the company was in a strong position to grow at this time. In the first two months of 2020, Zoom attracted more than 2 million new users. This showed in the company’s financials, as at the end of the year, Zoom reported a sales increase of 370%, compared with the same quarter in 2019.

Zoom stock news in terms of valuation saw the firm hit an all-time high of $559 by October 2020. That’s an increase of around 374% in under 10 months. Despite a strong report for fiscal Q3 2021, Zoom stock fell.

At the start of 2021, Zoom stock was around $345. The company warned traders about a slowdown in revenue growth in November 2021. Following this, Wall Street analysts cut price targets and Zoom stock was trading at a much lower $185 by the end of the year.

As is clear from the above Zoom stock chart, 2022 has been a difficult year for many publically listed companies. This has been a result of rising interest rates, inflation, and other factors. At the time of writing, the Zoom stock price is trading 79% beneath its all-time high.

The company is expanding its services, making smart acquisitions, and has beaten revenue expectations by 12.29%. This is according to its April 2022 quarterly financials.

EPS and P/E Ratio

Prior to completing an order to invest in Zoom stock, seasoned traders will check out the company’s financial reports.

With this in mind, here’s a quick look at the EPS reported in the company earnings calls from Zoom – based on its fiscal annual period.

• Q2 2022, reported EPS was $1.36. This was a 17.28% surprise
• Q3 2022, reported EPS was $1.11. This was a 1.40% surprise
• Q4 2022, reported EPS was $1.29. This was a 20.75% surprise
• Q1 2023, reported EPS was $1.03. This was a 17.93% surprise

Below is the revenue from the same fiscal reports:

• Q2 2022, reported revenue was $1.02 billion.  This was a 3.15% surprise
• Q3 2022, reported revenue was $1.05 billion. This was a 3.07% surprise
• Q4 2022, reported revenue was $1.07 billion. This was a 1.59% surprise
• Q1 2023, reported revenue was $1.07 billion. This was a 0.05% surprise

Some traders like to work out the P/E ratio to establish the worth of a company before investing. To do this, divide Zoom’s stock price with the EPS.

Market Capitalization

At the time of writing, Zoom has a market capitalization of over $35 billion, which makes it a large-cap stock.

Index Funds

Zoom is a holding in over 150 US-traded funds. As such, it’s possible to buy Zoom stock via an index, or an ETF that tracks it.

Here are some of the top ETFs that include Zoom stock:

• ARK Innovation ETF
• Invesco QQQ
• ARK Next Generation Internet ETF
• Vanguard Total Stock Market ETF

Note: Learn how to trade ETFs here.

Zoom Stock Dividends

Many traders are looking for a regular cash flow when purchasing equities. Zoom stock does not pay dividends.

FAQs