Zoom (ZM) purchases lead assets and enhances virtual event capabilities
This story originally appeared on Zacks
Focus on video communications ZM recently announced the acquisition of the assets of Liminal, a start-up offering an event production solution.
The acquisition will help Zoom create higher quality event productions than its average Zoom meetings.
During the pandemic, Liminal focused on creating better solutions for Zoom to bridge the gap between a virtual meeting and an in-person event. He focused on improving the Zoom SDK and developed applications such as ZoomISO and ZoomOSC.
ZoomISO generates video outputs of Zoom meeting participants, which can be exported to media servers or other production formats, including high definition.
ZoomOSC helps users effortlessly send an order from a third-party application or software to Zoom.
Acquiring these assets will help Zoom prepare for the post-pandemic era, as demand for solutions that support a hybrid work environment is expected to increase.
Acquisitions and partnerships Expand the portfolio
Acquisitions and strategic partnerships have been key catalysts for Zoom.
Zoom announced the acquisition of Karlsruhe Information Technology Solutions – Kites GmbH (Kites) in June 2021. Kites is a Germany-based start-up focused on the development of real-time machine translation (MT) solutions.
The resulting TA solutions, which will provide multilingual translation capabilities on the Zoom platform, are expected to improve meeting productivity and efficiency for Zoom users.
Zoom has also collaborated with VMWare VMW to enable a more secure and enhanced collaboration experience for hybrid work environments.
The partnership enables interoperability between the Zoom collaboration platform and VMWare’s Anywhere Workspace. This combination will improve the performance of utilities, applications, security and the network.
Zoom and VMWare will create more resilient organizations by helping them improve user experience, security and visibility.
R&D investments to stimulate turnover growth
Zoom has gained great traction with the emergence of remote working and e-learning during the pandemic. Easy deployment, convenience, hassle-free management, and solid scalability have made Zoom’s software popular among users.
The company has worked tirelessly to eliminate privacy and security loopholes and launched more features and solutions to expand its customer base.
The company invests heavily in research and development. In the third quarter of fiscal 2022, Zoom reported research and development expenses of $ 96.7 million, up 131.3% year-over-year.
Zoom also announced a new $ 100 million venture capital fund – Zoom Apps Fund – to usher in innovation in the Zoom Apps ecosystem. The Zoom Apps Fund will invest in developer partners with early market traction and viable products, enhancing Zoom’s user experience and improving productivity.
Earlier this year, Zoom announced the launch of Zoom Events – an all-in-one platform – that can produce interactive and engaging virtual experiences. This comprehensive solution enables event planners to produce paid live events for audiences of any size.
Zacks rank and actions to consider
Currently, Zoom holds a Zacks Rank # 3 (Hold).
Some better ranked stocks in the broader area of IT and technology are Electronic Arrow ARW and Advanced micro-systems AMD, both wearing a Zacks Rank # 2. You can see The full list of today’s Zacks # 1 Rank stocks here.
Arrow’s Zacks consensus estimate for fourth quarter FY2021 earnings has been raised to $ 4.42 per share, up 14.8% in the past 60 days. For fiscal 2021, earnings estimates rose 8.1% to $ 14.6 per share in the past 60 days.
Arrow has beaten Zacks’ consensus estimate for earnings in each of the past four quarters, with an average surprise of 18.6%. ARW shares have appreciated 38% since the start of the year.
Zacks ‘consensus estimate for Advanced Micro Devices’ fourth quarter 2021 earnings has been revised up 10.3% to 75 cents per share in the past 60 days. For 2021, earnings estimates have risen 0.38% to $ 2.65 per share in the past seven days.
Profits from Advanced Micro Devices have exceeded Zacks’ consensus estimate in each of the previous four quarters, with an average surprise of 14%. AMD shares have risen 68.3% year-to-date.
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