Wall Street is waiting for a better situation for Zoom Video Communications

Over the past 12 months, the stock of communications services provider Zoom Video Communications Inc. (ZM) has fallen by almost 70% and was worth $106.84 at auction on March 16. Currently, the company is going through difficult times, which is because of the rarer use of its applications and the general negative stock market trend for technology companies.

However, Wall Street analysts expect the company to grow. Analysts of the investment company Benchmark on Tuesday, March 15, raised the recommendation on Zoom Video Communications shares from “hold” to “buy” and set the target price at $124, an increase of about 25% from the current price.According to experts, Zoom Video Communications has a great potential that it can use, despite some negative trends. In particular, due to mass vaccination and reduction of COVID-19 risks, many offices have returned to normal work.

However, the strength of Zoom Video Communications is that it is expanding its presence outside the United States. So far, the use of applications such as Zoom Phone in international markets is “in its infancy,” Benchmark analysts say, so foreign expansion should be an excellent opportunity to increase sales, since so far the impact of foreign customers on revenue is small.

A reduction in the impact of COVID-19 and has affected the quotes of Zoom Video Communications in recent months not only a decrease in demand for communication applications but also by a general drop in the stock prices of technology companies. But Zoom has not yet realized its full potential in the international market, and in the long term, the company has opportunities for growth.