Want To Buy Zoom (NASDAQ:ZM) Stock? Here Are 2 Alternatives

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Summary

  • Zoom stocks posted a nearly 10 per cent gain on Monday, March 1.
  • A tech stock, an alternative for Zoom, rose over 42 per cent in the last one year and climbed nearly seven per cent year-to-date (YTD).
  • In the last one year, a video stock surged by about 15 per cent.

Zoom Video Communications (NASDAQ:ZM, ZM:US) was one of the few companies that gained from the coronavirus pandemic. As more institutions sought out ways to keep in touch with employees, students, etc amid the lockdown, Zoom’s video services came in handy. As a result, its demand went through the roof and, in turn, so did its stocks. But as its extreme security flaws came to light, users began looking for alternatives. Soon, video call service providers such as Teams by Microsoft Corporation (NASDAQ:MSFT, MSFT:US) and Cisco Systems (NASDAQ:CSCO, CSCO:US) caught peoples’ attention.

©Kalkine Group 2021

Zoom stocks hit an all-time high of US$ 568.3 on October 20 last year, but has since slid by nearly 28 per cent in a little over four months’ time. On Monday, March 1, however, the stock posted a nearly 10 per cent gain.

So, as Zoom Video pulls back some investor attention, let’s also take a peek at how the stocks of its alternatives, Microsoft and Cisco, are doing.

 

Microsoft Corporation (NASDAQ:MSFT, MSFT:US)

Current Stock Price: US$ 236.94


Microsoft stocks rose over 42 per cent in the last one year and climbed nearly seven per cent year-to-date (YTD). The stock’s trading volume averaged at nearly 29 million in the last 10 day, and it currently holds a return on equity* (ROE) of 42.7 per cent.

On the financial front, the tech giant noted a year-over-year (YoY) revenue growth of 17 per cent to US$ 43.1 billion in the second fiscal quarter ending 31 December 2020. Microsoft’s operating income was up 29 per cent YoY to US$ 17.9 billion, while its net income surged by 33 per cent YoY to US$ 15.5 billion Q2 FY21. Its diluted earnings per share (EPS) for the quarter stood at US$ 2.03, up by 34 per cent YoY.

On Friday, February 26, Microsoft launched the general availability of Teams Panels that is meant to help staff with meetings as employees begin to return to office.    

©Kalkine Group 2021

Cisco Systems Inc (NASDAQ:CSCO, CSCO:US)

After a steady descent through most of February, Cisco stock snapped back up on Monday by a little over three per cent. The spike brought its YTD growth to over three per cent and its one-month average trading volume to over 20 million. In the last one year, Cisco stocks have surge by about 15 per cent.

Videoconferencing application Webex (formerly WebEx) had been in business for over a decade when Cisco Systems purchased it in 2007. Together, California-based Cisco Webex upgraded its services since the onset of the pandemic to match up to the market standards, including screen-sharing plugins, interactive whiteboard etc.

Cisco, which recently acquired tech firm Acacia Communications, saw its non-GAAP net income expand by about two per cent YoY to US$ 3.4 billion in the second quarter ending 23 January 2021.

*as per TMX

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