Zoom Video Net Income vs. Market Capitalization

5ZM Stock   78.64  0.44  0.56%   
Considering Zoom Video's profitability and operating efficiency indicators, Zoom Video Communications may not be well positioned to generate adequate gross income at the moment. It has a very high risk of underperforming in January. Profitability indicators assess Zoom Video's ability to earn profits and add value for shareholders.
For Zoom Video profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Zoom Video to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Zoom Video Communications utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Zoom Video's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Zoom Video Communications over time as well as its relative position and ranking within its peers.
  
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Please note, there is a significant difference between Zoom Video's value and its price as these two are different measures arrived at by different means. Investors typically determine if Zoom Video is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Zoom Video's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.

Zoom Video Communications Market Capitalization vs. Net Income Fundamental Analysis

Comparative valuation techniques use various fundamental indicators to help in determining Zoom Video's current stock value. Our valuation model uses many indicators to compare Zoom Video value to that of its competitors to determine the firm's financial worth.
Zoom Video Communications is rated below average in net income category among its peers. It also is rated below average in market capitalization category among its peers creating about  471.32  of Market Capitalization per Net Income. The reason why the comparable model can be used in almost all circumstances is due to the vast number of multiples that can be utilized, such as the price-to-earnings (P/E), price-to-book (P/B), price-to-sales (P/S), price-to-cash flow (P/CF), and many others. The P/E ratio is the most commonly used of these ratios because it focuses on the Zoom Video's earnings, one of the primary drivers of an investment's value.

Zoom Market Capitalization vs. Net Income

Net income is the profit of a company for the reporting period, which is derived after taking revenues and gains and subtracting all expenses and losses. Net income is one of the most-watched numbers by money managers as well as individual investors.

Zoom Video

Net Income

 = 

(Rev + Gain)

-

(Exp + Loss)

 = 
103.71 M
Because income is reported on the Income Statement of a company and is measured in dollars some investors prefer to use Profit Margin, which measures income as a percentage of sales.
Market Capitalization is the total market value of a company's equity. It is one of many ways to value a company and is calculated by multiplying the price of the stock by the number of shares issued. If a firm has one type of stock its market capitalization will be the current market share price multiplied by the number of shares. However, if a company has multiple types of equities then the market cap will be the total of the market caps of the different types of shares.

Zoom Video

Market Cap

 = 

Shares Outstanding

X

Share Price

 = 
48.88 B
In most publications or references market cap is broken down into the mega-cap, large-cap, mid-cap, small-cap, micro-cap, and nano-cap. Market Cap is a measurement of business as total market value of all of the outstanding shares at a given time, and can be used to compare different companies based on their size.

Zoom Profitability Driver Comparison

Profitability drivers are factors that can directly affect your investment outlook on Zoom Video. Investors often realize that things won't turn out the way they predict. There are maybe way too many unforeseen events and contingencies during the holding period of Zoom Video position where the market behavior may be hard to predict, tax policy changes, gold or oil price hikes, calamities change, and many others. The question is, are you prepared for these unexpected events? Although some of these situations are obviously beyond your control, you can still follow the important profit indicators to know where you should focus on when things like this occur. Below are some of the Zoom Video's important profitability drivers and their relationship over time.

Use Zoom Video in pair-trading

One of the main advantages of trading using pair correlations is that every trade hedges away some risk. Because there are two separate transactions required, even if Zoom Video position performs unexpectedly, the other equity can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Zoom Video will appreciate offsetting losses from the drop in the long position's value.

Zoom Video Pair Trading

Zoom Video Communications Pair Trading Analysis

The ability to find closely correlated positions to Zoom Video could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Zoom Video when you sell it. If you don't do this, your portfolio allocation will be skewed against your target asset allocation. So, investors can't just sell and buy back Zoom Video - that would be a violation of the tax code under the "wash sale" rule, and this is why you need to find a similar enough asset and use the proceeds from selling Zoom Video Communications to buy it.
The correlation of Zoom Video is a statistical measure of how it moves in relation to other instruments. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A perfect positive correlation (i.e., a correlation coefficient of +1) implies that as Zoom Video moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Zoom Video Communications moves in either direction, the perfectly negatively correlated security will move in the opposite direction. If the correlation is 0, the equities are not correlated; they are entirely random. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak.
Correlation analysis and pair trading evaluation for Zoom Video can also be used as hedging techniques within a particular sector or industry or even over random equities to generate a better risk-adjusted return on your portfolios.
Pair CorrelationCorrelation Matching

Use Investing Themes to Complement your Zoom Video position

In addition to having Zoom Video in your portfolios, you can quickly add positions using our predefined set of ideas and optimize them against your very unique investing style. A single investing idea is a collection of funds, stocks, ETFs, or cryptocurrencies that are programmatically selected from a pull of investment themes. After you determine your investment opportunity, you can then find an optimal portfolio that will maximize potential returns on the chosen idea or minimize its exposure to market volatility.

Did You Try This Idea?

Run Social Domain Thematic Idea Now

Social Domain
Social Domain Theme
New or established large and mid-sized companies that are involved in the social media industry, including entities that provide web-based or mobile media applications and services across across large segment of population in multiple geographical areas. The Social Domain theme has 39 constituents at this time.
You can either use a buy-and-hold strategy to lock in the entire theme or actively trade it to take advantage of the short-term price volatility of individual constituents. Macroaxis can help you discover thousands of investment opportunities in different asset classes. In addition, you can partner with us for reliable portfolio optimization as you plan to utilize Social Domain Theme or any other thematic opportunities.
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Additional Tools for Zoom Stock Analysis

When running Zoom Video's price analysis, check to measure Zoom Video's market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy Zoom Video is operating at the current time. Most of Zoom Video's value examination focuses on studying past and present price action to predict the probability of Zoom Video's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Zoom Video's price. Additionally, you may evaluate how the addition of Zoom Video to your portfolios can decrease your overall portfolio volatility.