In early November, the stock nosedived from $500 to $376 in two days on rapid progress for a prospective COVID-19 vaccine. Investors are grappling with that question in an intense way.
It's a simple question: Is Zoom on its way to becoming telecommunications giant, or will it be remembered as a 2020 fad? Visit Business Insider's homepage for more stories.Business Insider also reviewed research by the only analyst with a "sell" rating on the stock, as well as the most accurate analyst covering Zoom, according to TipRanks.Davidson, said in an interview he expected a rally of almost 50% in the next year - and that the stock could triple again in a decade. The most bullish analyst covering Zoom, Rishi Jaluria of D.A.Zoom Video Communications' stock has soared nearly 500% in 2020, but it's become very volatile in the past few weeks as investors contemplate its post-COVID-19 future.with reporting from CNBC's Michael Bloom. Shares of Zoom popped about 3% on Thursday. AB Bernstein reiterated its outperform rating on Zoom. "Using the difference in FY21 guidance between the Q221 and Q420 earnings calls, and the company's long-term margin targets, we estimate the company should be able to add an incremental $1.66B of recurring revenue over the next year due to the upside from revenue this year and mgmt.'s stated sales & marketing margin," added Chrane. Chrane also mentioned its enterprise cloud phone service, Zoom Phone, has only reached about 1% penetration for its potential user base and presents upside of several billion dollars over the next few years. "Zoom still has a huge runway for increasing penetration and revenue within the Global 2000 companies given only 12% are paying more than $100k in revenue," said Chrane. Bernstein said Zoom hosted its annual Analyst Day on Wednesday, making the firm even more optimistic about the company's future. While many Americans are stuck inside, avoiding public spaces and working or studying from home, Zoom became a winner due to its video conference software - connecting bosses to employees, teachers to students and friends and families during an unprecedented time. Shares of Zoom have surged nearly 650% in 2020, as the video chatting company emerged as a major beneficiary of the pandemic. Bernstein is "increasingly bullish on operational metrics and new product releases," the firm's analyst Zane Chrane told clients. This is a the highest target price of any major firm, according to FactSet. The Wall Street firm hiked its 12-month price target on Zoom Video to $611 per share from $228 per share, representing about 20% upside from Wednesday closing price of $509.25 per share.
(This story is for CNBC Pro subscribers only.) AB Bernstein just became the biggest bull on Wall Street of breakout video conferencing stock Zoom Video.
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