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Zoom Zooms After Impressing With New Products

Published 2020-10-15, 12:42 p/m
Updated 2020-10-15, 12:43 p/m

By Christiana Sciaudone

Investing.com -- It looks like Zoomtopia was a winner.

 
Zoom Video Communications (NASDAQ:ZM) Inc. jumped 5% to an intraday record a day after it unveiled a slew of new products and features during an event Wednesday that Wall Street analysts mostly praised.
 
Analysts were particularly jazzed about the launch of OnZoom, an online events platform. AllianceBernstein (NYSE:AB) nearly tripled its price target, going from $228 to a Street-high $611, TheStreet.com said. RBC Capital Markets also boosted its PT, raising it to $600 from $450, saying it had "increased conviction in the potential for durable hypergrowth, with a potential path to 60% growth next year."
 
Morgan Stanley (NYSE:MS) said OnZoom "creates a pull-in for businesses to utilize Zoom as a virtual product-delivery channel," TheStreet reported.
 
The positive takes are likely to help Zoom stay one of the hottest stocks of the year. It's soared more than 650% as the pandemic moved businesses and schools online. Shares are currently trading around $536.
 
In addition to the new products, Zoom also laid out some revised financial goals. The company is now targeting a long-term adjusted operating margin of 25% of revenue, and a gross margin of 80% of revenue. It plans to spend between 10% to 12% of revenue on R&D and 30% to 35% on sales and marketing.

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