Zoom Video Communications (NASDAQ:ZM), makers of the Zoom platform, enjoyed what may have been the pinnacle of its corporate life back during the pandemic. But when the government lockdowns finally boiled off, the need for a platform that allowed ready video communications just wasn’t all that helpful anymore. Zoom shares are down fractionally in Tuesday afternoon’s trading, but there may be light ahead. The new opportunity comes from Teamraderie, a startup that offers what it calls “virtual team-building activities.”
Don't Miss our Black Friday Offers:
- Unlock your investing potential with TipRanks Premium - Now At 40% OFF!
- Make smarter investments with weekly expert stock picks from the Smart Investor Newsletter
These activities are simulated over Zoom calls and range from the whimsical to the baffling. With Teamradierie’s product line, teams can build Lego models, engage in barista-curated coffee-tasting sessions, or even stage a simulated rescue mission led by a former Navy SEAL.
It’s designed to help teams feel more cohesive rather than just a collection of individuals working toward a common goal. It’s also a potential new application for Zoom, one that doesn’t depend on the government forcing people to stay home.
Something’s Got To Give
It’s clear that Zoom needs something to back its play because, as it stands, things aren’t going so well. We know that Zoom has been in decline thanks to the “pandemic” part of its “pandemic darling” status fading away. A look at the last five years in Zoom trading is like looking at a mountain that rose out of the ground only to fade back into the desert.
With around 60% of Zoom owned by institutional shareholders, it’s clearly no longer drawing the attention of the average shareholder. That could limit its overall appeal and its ability to raise cash going forward. And with its earnings report coming up and a decline against the previous year expected, Zoom needs to appeal to its shareholders—and those who formerly were—once more. Could unusual virtual team-building be the killer app Zoom needs? Only time will tell.
Is Zoom Stock a Buy or Sell?
Turning to Wall Street, analysts have a Hold consensus rating on ZM stock based on five Buys, 15 Holds, and one Sell assigned in the past three months, as indicated by the graphic below. After a 15.11% loss in its share price over the past year, the average ZM price target of $73.44 per share implies 28.48% upside potential.
