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How To Buy Zoom (ZM) Stock In 2023

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By Wajeeh Khan
Last Updated April 13th 2023
15 Min Read

This post presents you with a comprehensive guide on how to buy Zoom stock in 2023 through a regulated broker. We will introduce you to the best Zoom shares brokers and tell you what to consider when searching for the best Zoom stock. We will also tell you everything you need to know before investing in Zoom Video Communications.

By the end of this post, you will have learnt how to buy your first ZM stock. You will also have familiarized yourself with the many factors expected to influence Zoom share price in 2023 and beyond. But even more importantly, you will have decided whether Zoom shares are worth buying in 2023.

Read on.

How To Buy Zoom (ZM) Stock – Overview

Here is an outline of the Zoom share buying guide that has been adopted by the majority of regulated online stock brokers.

  • Step 1: Create a share trader account – Start by finding a regulated and highly reputable stock broker and create a share investor account with them. Most of these brokers have oversimplified this investing process and will only ask for your basic personal information.
  • Step 2: Verify your identity – Regulated brokers are also required to pass their clients through KYC and AML checks. Your broker will, therefore, ask that you submit a copy of a government-issued identity document before you can begin depositing funds or buying Zoom shares.
  • Step 3: Deposit funds – Log in to the approved trader account and deposit funds. Remember that different brokers maintain different minimum trading and deposit minimums. They also support different payment options. Consider these when looking for the best Zoom shares broker.
  • Step 4: Buy Zoom shares – Search for Zoom stock from the list of shares supported by your preferred stockbroker. Place a buy order by indicating the number of Zoom shares you want to buy or the amount you wish to invest in the video communications company.

 

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Your capital is at risk. Other fees apply.

In the sections below, we will break explore this buying guide and cover each step in detail. We start by telling you where to buy ZM shares.

The Zoom (ZM) Stock Buying Guide - Reviewed

Step 1: Decide Where To Buy Zoom (ZM) Stock

The first step to investing in company stock, especially for retail share traders, is looking for a brokerage that lists that company’s stock. Zoom’s popularity skyrocketed in 2020 and has since been listed with hundreds of online share trading platforms.

To find the Zoom share broker that works best for you, you will have to first vet many of these platforms as possible. Here are some of the factors that you need to pay close attention to when searching for the best broker:

  • Cost of trading: Understand that the fees and commissions charged by a broker have a direct impact on the profitability of your Zoom trades. Therefore, compare all the charges (both trading and non-trading) levied by different brokers and only register the account with the most affordable broker.
  • Access to tools: The ideal broker should also give you access to all the necessary trading, research, and risk management tools.
  • Account minimums: We have mentioned above that different brokers maintain different trading and deposit amount minimums. Compare different broker minimums, check if they support fractional share ownership, and confirm their supported payment methods.
  • Security: The ideal Zoom shares broker should also provide a security guarantee for your funds and personal data. They should prove that they have in place solid measures to prevent the loss of client funds and unauthorized access to client data. These measures may include segregated bank accounts, deposit insurance, negative balance protection, and no sharing of client data with third parties.
  • Regulation and reputation: We also recommend that you only register a share investor account with a regulated broker. This broker should also have a solid reputation for reliability and customer service.

But there currently are hundreds of highly regulated, reputable, and secure platforms that give you access to premium tools. Our analysts have vetted them all and ultimately settled on these two as the best places to buy Zoom shares in 2023.

Here is an overview of each, telling you how they work and what makes them the best Zoom shares broker.

  • eToro – Best Zoom Stock Broker for User Friendliness and Social/Copy Trading

Many factors make eToro one of the best Zoom shares brokers. First is its user-friendliness – which starts with a quick and straightforward account opening process. This then extends to an easily navigable multi-platform trading interface (available as a web trader and mobile app).

The broker also approves accounts fast. And all these have contributed to making eToro one of the most popular online brokers – with more than 25 million platform users across 100+ countries across the world.

how to buy zoom stocks

We also consider the multi-asset broker the best place to buy Zoom shares because of its affordability. For starters, eToro is a commission-free broker. This means that when buying ZM stock on the platform, you will only have to part with a highly competitive and variable spread. And since eToro also supports margin trading for Zoom share CFDs, you may have to pay a swap fee if your leveraged trade remains open overnight.

To start buying and selling Zoom stock on eToro, you will need to deposit at least $10 into the platform. The payment methods available depend on your country of residence but include credit cards, debit cards, bank wire, ACH checks, and eWallets like Neteller and PayPal. The broker charges no deposit processing fees, but withdrawals attract a fixed $5 fee and draw a minimum of $30.

Other factors that make eToro one of the best places to buy Zoom shares include its highly innovative trading platform. It boasts of maintaining some of the fastest order execution speeds and integrating a wide range of premium trading and research tools. The broker even offers negative balance protection.

But eToro is even more popular because of the integrated copy and social trading tools. Social trading allows for seamless interaction between all eToro platform users. Expert traders get to discuss and collaborate on strategies, while novice traders learn and receive mentorship. Copy trading, on the other hand, lets anyone earn passively. You can earn by copying the trade strategies and mirroring them on your account or receiving a commission from eToro if you let others copy your trades.

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  • Capital.com – Best Commission-Free CFD Broker

Capital.com is a pure CFD trading platform. This implies that you can only buy Zoom shares CFDs on the platform, which means that you don’t get to own the shares traded here. It also means that you cannot use the platform if you are a resident of countries like the US, where CFD trading is illegal.

You will need to deposit at least $20 into the platform if you wish to start trading Zoom shares on Capital.com. But since the broker supports margin trading – with leverages of up to 1:5, you can enter into significantly larger positions even with low trading capital. This deposit can be made via such popular payment options as bank cards, wire transfers, and eWallets as Skrill and PayPal.

Like eToro, Capital.com is a commission-free broker. This means that you will only have to a competitive when trading ZM shares on the platform. You may also have to pay an equally competitive swap fee if you leave leveraged trades open overnight.

In addition to these, we consider Capital.com the best Zoom shares broker because of its innovative trading platform. The broker, for example, maintains one of the fastest order execution speeds. The multi-asset platform also integrates a wide range of advanced trading, analysis, and risk management tools.

Additionally, Capital.com was among the earliest brokers to integrate artificial intelligence (AI) into its trading platforms. This tool comes in handy in helping traders eliminate bias in their trades through post-trade analysis.

We also liked that Capital.com is a multi-platform brokerage that supports third-party trading platforms like Trading View and MT4. This makes it appealing to active traders at these platforms present them with more advanced trading tools, support auto-trading, and even allow for mirror trading.

Step 2: Research Zoom (ZM) Stock

Before registering with a stock broker and buying Zoom shares, it is important that you first familiarize yourself with the company and its stock.

Learn as much as you can about the video technology company, its financial health, and how its stock has performed in the past. Use these to identify factors that will affect the ZM share price moving forward.

These help you decide when to buy and whether to hold or sell Zoom shares.

What is Zoom? 

Zoom Video Communications (Commonly known as Zoom) is an American-based technology company that offers peer-to-peer software for video conferencing and online chat services. Through Zoom software, the company facilitates video conferencing, online messaging, voice calls, virtual events, and video meetings.

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The company was founded in 2011 by Eric Yuan – a former Cisco engineer –and availed the Zoom software to the public in 2013. It was gradually adopted by individuals and institutions, especially corporates, for holding online virtual meetings and schools engaged in distance learning. And much of this could be attributed to the fact that it was free, highly reliable, and user-friendly interface.

The company posted steady growth in its first six years of operation, as evidenced by the number of annual meeting minutes held on the platform. In its first year of operations, for example, Zoom hosted 200 million annual meeting minutes. By June 2016, it had clocked 6 billion minutes, and by Feb 2019, these had shot past 60 billion.

Granted, Zoom was a fast-growing tech company pre-2020. But the company’s fortunes changed in 2020 when the Covid-19 pandemic struck, and the world shut down. The world entered into a lockdown, and business, schooling, and interpersonal engagements now had to be conducted online. This saw a massive uptake of Zoom technology services. In the second quarter of 2022 alone, Zoom facilitated 79 billion meeting minutes.

This growth continued steadily, with meeting minutes surpassing 100 billion in quarter four of 2020. In the third quarter of 2021, Zoom hosted 3.3 million meeting minutes. And throughout 2022, Zoom hosted an average of 300 million meeting minutes daily, with the typical meeting lasting 45 minutes. Its number of paying subscribers has also shot past 500,000, with the basic plan going for $149 per annum.

Zoom Financials

Zoom makes money in three different ways. Its primary source of revenue is the paid subscription for video conferencing services. Secondly, Zoom makes money by renting hardware necessary for video, audio, and textual communications, including hiring cameras and speakers. Lastly, Zoom makes money by providing different add-on services – such as room connectors and conference recording.

Note, however, that though Zoom has been around since 2013, it only reported its first full year of profit in 2019. Since then, its annual revenue has been on a sustained uptrend, reaching $630 Million in 2020, $2.6 Billion in 2022, and surpassing $4.1 Billion in 2022.

Zoom Historical Price Performance

Zoom went public in April 2019 when it was listed with NASDAQ. A total of 20.91 million shares (both by the company and existing shareholders/early investors) were availed to the investment community at an IPO price of $36.

These helped the company raise $356 Million. But by the end of its first day of trading, ZM stock price had shot up by more than 80% before tempering and closing the day at $62 – giving the company a market capitalization of $15.9 Billion.

The share price continued rallying and breached the $100 mark in July 2019. Its most aggressive growth would, however, come about after 2020 when ZM stock price pierced above $150. This aggressive growth continued throughout the second and third quarters of 2020, and in October, Zoom hit its current all-time high of $560 – more than 1750% above its IPO price.

Since then, however, Zoom’s share price has been on a gradual decline, and by December 2022, it had dumped all the 2020 gains and dipped back to its April 2019 price levels.

Factors Affecting Zoom Share Price

Zoom is a massively volatile stock that is still finding its ideal market price. It rallied 1750% less than 18 months after listing and dumped as much in the two years that followed. Much of this could be attributed to the fact that it is a relatively new tech stock operating in a wildly changing market environment.

If you are to invest in the company long-term or trade its stock short-term, you need to understand the different factors expected to influence its price moving forward. Here are a few:

  • Growing subscriber base: We have already mentioned that Zoom’s chief source of revenue is its subscriber numbers. Therefore, positive subscriber numbers will almost always result in a rallying ZM stock price.
  • Remote work dynamics: Zoom benefited the most from a locked-down economy and the emergence of remote/work/school programs. As the effects of the covid-19 pandemic wear down, how different institutions react to remote work/learning/business will have a significant impact on ZM share price. Calls to return to work would have a negative impact on Zoom’s stock price.
  • Company financials: Zoom’s financial health may also be expected to play a critical role in influencing share price. Growing revenues and profitability often result in a rallying share price.
  • Industry trends: Zoom is a tech stock whose price is greatly influenced by the performance of other tech industry stocks. Much of its price dump in 2022 could even be attributed to falling tech industry stocks.
  • Macroeconomics: National and global economic performance and geopolitics will also impact ZM stock price. The rising cost of living, political tensions, and the threat of global recession will all lead to a declining stock price.

buy zoom stock

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Step 3: Open A Share Investor Account And Buy Zoom Stock

The last step in our how to buy Zoom stock guide is the actual ZM share buying process. In this section, we will provide you with a detailed step-by-step process that teaches you how to buy Zoom stock from the regulated and all-popular eToro brokerage. 

1. Open a stock broker account 

On your browser, open the official eToro website or choose to download their broker’s mobile trading app. Click the “Join Now” icon on either platform and complete the user registration form that pops up. This will ask for your basic personal details and also inquire about your trading experience and income source.

open trading account

2. Verify your identity

Given that eToro is a multi-regulated brokerage, it will require you to verify your identity. This means that you have to furnish the broker with a driver’s license, passport, or national ID bearing the name used to create a share investor account.

etoro account verification

3. Deposit funds

Log in to your approved share investor account and click on the “Deposit Funds” button. On the funding tab that pops up, choose one of the supported payment methods and follow the prompts to fund the account with at least $10.

fund account

4. Buy Zoom stock

Click the “Discover” button on the user dashboard and choose “Stocks” from the list of assets supported on the platform. Search for Zoom stock and press the ‘BUY’ option against it. Use the trading tab that pops up to customize the trade by indicating the number of ZM shares you wish to buy, then hit the “Open Trade” button to execute the investment.

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Zoom Stock Strengths And Weaknesses

But before you go through with the Zoom stock buying process we have just outlined above, you need to ask yourself – are Zoom shares worth buying in 2023? And to answer this, you need to compare the many benefits of investing in ZM shares today against the demerits of being involved with Zoom today.

To help you arrive at this investment decision, we have sampled a few reasons to buy Zoom stock in 2023. We also point out a few reasons why Zoom may not be the best buy today.

Reasons To Buy Zoom Stock In 2023

  • Solid financials: Zoom’s annual revenues and net income have been on a sustained uptrend. It, for instance, had a quick ratio of 3.2 in December 2022. This indicates the company is financially solid and can conformably withstand temporary market challenges like the looming recession.
  • Reasonably priced stock: Going into 2023, Zoom shares are reasonably priced, possibly undervalued, when you consider the growth the company recorded throughout 2022. One may, therefore, expect ZM stock to start rallying and possibly recapture its 2020 highs as soon as the market stabilizes.
  • Growing Zoom ecosystem: Zoom has been growing its brand and services on offer. We expect this expanded Zoom ecosystem to draw in more users and possibly turn more current users into paying subscribers.

Reasons Not to Buy Zoom Stock

  • Falling tech stocks: Zoom shares price drop in 2022 may be attributed to the falling tech industry stock. If tech stocks continue plummeting, especially if the recession hits in 2023, you may expect ZM stock price to continue dropping – which means that today may not be the best time to start buying the company stock.
  • Changing remote work dynamics: Moving into 2023, we may see more companies recalling employees back to the office and more schools calling students back to class. This will have an adverse effect on ZM stock price as it means the loss of a sizeable number of users.

For more guides on how to buy shares check out our other stock buying guides:

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Conclusion - How To Buy Zoom (ZM) Stock

In less than a decade, Zoom went from an idea to the most dominant cloud-based peer-to-peer software for video telephony and online chat. It also overcame years of loss-making to report annual revenues in excess of $4 Billion.

Even more importantly, it grew its stock price by 1750% to a peak above $560. Not forgetting growing its usage from 200 million meeting minutes in December 2013 to more than 300 million minutes per day in 2022.

Heading into 2023, the general consensus within the investment community is that Zoom is a hold. And in this post, we have provided you with a detailed guide teaching you how to buy Zoom shares through highly regulated and reputable online stock brokerages.

eToro – Buy Zoom Stock Today

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FAQs About How To Buy Zoom Stock

How can I buy Zoom stock today?

It is simple, register a share investor account with a regulated broker like eToro, fund this account, and place a buy order for ZM shares.

Does Zoom pay Zoom dividends?

No, Zoom – like most other technology companies – doesn’t pay dividends. Instead, it re-invests its profits in growing the Zoom ecosystem.

Is Zoom worth buying in 2023?

Yes, the general consensus within the investor community for Zoom stock is HOLD. Furthermore, a growing number of technical and fundamental analysts argue that ZM stock is underpriced and will begin recovering as soon as the market stabilizes – which makes a good buy today.

Why is Zoom stock down so much?

Zoom’s accelerated drop in share price may be attributed to such factors as the plummeting technology stocks. It may also be attributed to the bear market as well as the changing remote work dynamics.