How to Buy Zoom Stock

Not long ago, Zoom was one of many tech stocks being outshined by the likes of Amazon, Google, and Netflix, but since large swaths of the US and UK began working remotely in response to COVID-19, Zoom’s stock price has more than doubled.

While some investors might warn never to jump into a stock in the middle of such a meteoric rise, no one wants to miss out on profits, either. Zoom likely isn’t going anywhere as remote work becomes an increasing part of the modern workplace. So, the dramatic price increase over the past few weeks might just be the beginning of a much longer upward trajectory.

If you want to get into Zoom stock, this guide will cover everything you need to know. We’ll highlight three of the best brokers you can use to buy Zoom, plus discuss the company’s prospects for the future.

How to Buy Zoom Stock in 3 Quick Steps

Want to get your hands on Zoom shares before the price can rise any higher? Here are the three essential steps you need to take to buy Zoom stock.

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Where to Buy Zoom Stock

To purchase Zoom stock, you’ll need a trading account with a broker that offers you stocks listed on the NASDAQ stock exchange. There are plenty of options for this, but it’s worth taking the time to find a reliable and trustworthy broker that doesn’t charge excessive fees. Here, we’ve picked out our top three recommendations.

Detailed overview of providers

How to Buy Zoom Stock from eToro

Want to buy Zoom stock right away but don’t know how to get started? We’ll walk you through the process of trading Zoom using our top-rated broker, eToro. This is a great option for getting started quickly because it makes it possible to deposit funds and start trading in just a few minutes. Even if you opt for a different broker, the steps we’ll outline here are largely similar between trading platforms.

Step 1: Search for Zoom (ZM) Stock

You can browse through all 800-plus stocks that eToro offers for trading. But, to speed things up, just search for ‘ZM’ (Zoom’s ticker symbol) in the search box at the top of the page.

Step 2: Click on ‘Trade’

Click the ‘Trade’ button to start filling out an order for Zoom stock.

Step 3: Set Up Order and Buy Zoom Stock

At this point, you’ll be taken to an order form that tells eToro how much Zoom stock you want to buy and how you want to execute your trade. Let’s take a closer look at some of the options you have when placing your order:

• Set Rate: This is the price at which you will buy Zoom stock. If you leave it as ‘At Market,’ eToro will buy the stock at its current price. Alternatively, you can set a specific price above or below the current market rate. eToro will only buy Zoom stock if the price rises or falls to the price you specified.
• Amount: This is the amount of Zoom stock you want to buy, in dollars. You can click the ‘Rate’ button if you’d rather specify how many shares of Zoom stock you want to buy.
• Stop Loss: It’s always a good idea to set up a stop loss when purchasing a stock. This is a price, below the price you’ve specified to buy Zoom at, at which eToro will automatically sell your stock. Setting up a stop loss ensures that you can’t lose too much money in case Zoom stock starts to fall.
• Take Profit: A take-profit level is like the opposite of a stop loss. When Zoom stock reaches a certain price, eToro will automatically sell your shares to realize your profit. This is helpful if you want to cash out your position at a certain price rather than hold Zoom indefinitely.

Click ‘Buy’ to complete your trade.

Why Invest in Zoom?

Still not sure whether Zoom is a worthwhile investment? Let’s take a look at the bulls’ case for why Zoom stock has a lot of growth potential over the long-term.

Zoom is Profitable

One of the best reasons to consider investing in Zoom is also the simplest; this company actually makes money. That may sound like a no-brainer for a major company, but the fact is that much of the US tech sector is built on companies that are yet to turn a profit.

At the end of 2019, Zoom reported a full-year profit of just over $25 million. The company nonetheless has plenty of cash on hand to capitalize on its newfound popularity and no major debt.

Even better, Zoom’s revenue is growing at an unheard-of rate in 2020 thanks to the COVID-19 crisis. Year-over-year revenue for the second quarter is up 78%, and Zoom recently brought on major enterprises like HSBC and Johnson & Johnson as customers. That’s an extremely encouraging sign and Zoom is only likely to increase its profits as the world transitions to a new normal.

Remote Work is the New Normal

Remote work was slowly gaining in acceptance prior to COVID-19, but with a huge portion of the US now working from home, Zoom has become a tool that virtually everyone is familiar with.

That bodes extremely well for the company in the future. There are numerous experts forecasting that remote work will be much more widespread even after the pandemic recedes, meaning more individuals and companies will be relying on software like Zoom. In addition, as individuals have turned to Zoom to chat with friends and family, they’re likely to stick with the platform thanks to its superior audio and video quality.

All of that points to Zoom’s recent customer growth being part of a broader trend, not just a blip in response to the coronavirus crisis.

Zoom is Investing in Itself

One of the things we like best about Zoom is that the company isn’t just sitting on all the new cash it’s brought in. It’s using that revenue to make improvements to the platform and bring in even more customers.

More than 20% of its software engineers are tasked with developing features that customers themselves have requested. Among the 300 new features that Zoom released last year was the ability to change your screen background, which has been something of a hit in recent months.

While security has recently been something of a hiccup for Zoom, the company has responded to those problems speedily. Thanks to this attention, the public seems to have largely forgiven the company for the privacy flaw. Plus, Zoom knows going forward that security is something it needs to spend more time on in order to retain users’ trust.

About Zoom Stock

Zoom was founded in 2011 by Eric Yuan, who remains the company’s CEO, and the video conferencing software made its debut in 2013. It wasn’t until 2019, though, that the company IPO’d on the NASDAQ stock exchange at a price of $62 per share.

Throughout 2019, the stock bounced around between that IPO price and the $100 level. But as the scale of the coronavirus crisis in the US and abroad became clear in early March 2020, the stock rocketed upwards.

Zoom is already a large-cap stock, with a total market capitalization of more than $45 billion. But, it still has plenty of room to run if more and more people in the US and around the world turn to this company for video meetings and remote work.

Should You Buy Zoom Stock?

Right now, there are numerous analysts and stock picking services thing everyone who will listen to buy Zoom stock. The company has performed extremely well not just in the past few months, but since it’s stock debuted in early 2019. The few security hiccups it’s users had piled into the software have largely been resolved and the future looks bright for this video conferencing tech company.

It’s impossible to tell just how high Zoom’s stock price will fly. There’s always a chance that the current rise is short-lived in response to COVID-19. But more likely than not, Zoom will continue to prosper in the years to come and early investors will reap the benefit of massive growth in the share price.

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