Zendesk (NYSE: ZEN), Zoom Communications (NASDAQ: ZM), and Zillow (NASDAQ: Z) are three very distinct companies that you should consider investing in. With their forward-looking ventures and products, they have huge growth potential. Let’s take a look at these three brands to determine why they make good investments.
Zendesk is a game-changing company that provides a wide range of IT services related to customer experience (CX), communications, and other consumer support via various media channels such as email, support chat, phone, and so on. In 2007, the company was founded in Copenhagen, Denmark, and in 2009 it relocated its headquarters to San Francisco, California.
In July this year, the company announced its Q2 earnings, disclosing that revenue grew by 29 % year-over-year (YoY) to $ 318.2 million. It reported a $42.4 million GAAP operating loss, beating expectations.
The company also announced its addition of two new team members: Shelagh Glaser as Chief Financial Officer and Alex Constantinople as Chief Marketing Officer. Glaser brings years of experience in finance and data. Whereas Constantinople, who stepped down as CEO of Outcast, brings her expertise in communication and branding. These additions could go a long way in helping the company continue to grow under fresh management.
Recently, the organization made headlines for acquiring an AI automation venture, Cleverly, in order to enhance customer support across its products. One of the reasons for acquiring the firm is the same vision of making AI programs available to everyone.
Zendesk shares have fallen roughly 10% year-to-date (YTD), making the dip a rare buying opportunity.
2. Zoom Video Communications, Inc.
As soon as the world went into lockdown due to COVID-19, Zoom saw a pandemic boom. This is the teleconferencing tool that everyone has either used or at the very least heard of for family gatherings, meetings, and online classes,
Zoom presented its Q2 financial statement for its fiscal year 2022 at the end of August. In Q2, the company had its first billion-dollar revenue, with $1.02 billion, up 54% YoY. In addition, the company reported a GAAP profit margin of 28.8% against the non-GAAP gross margin of 41.6%.
Zoom founder and CEO, Eric Yuan mentioned positive Q2 trends;
“Q2 also marked several milestones on our expansion beyond the UC platform. Today we are a global brand counting over half a million customers with more than 10 employees, which we believe positions us extremely well to support organizations and individuals as they look to reimagine work, communications, and collaboration.”
Five9, an innovator of cloud-based helpdesk systems, and Karlsruhe Information Technology Solutions, which is well acknowledged for its innovation R&D, were recently acquired by Zoom. The firm has also officially unveiled Zoom apps and Zoom events features, which will help users with conferences, collaboration, and creativity.
Zoom shares have suffered in 2021, falling 17% YTD at the time of writing as 2020s outsized gains catch up with it.
3. Zillow Group Inc.
Zillow is one of the most popular real estate websites in the U.S.; serving as a marketplace for property deals. Users can look to Zillow for guidance on buying or selling their next property,
In early August, the company released its Q2 reports, which stated that it had revenues of $1.3 billion and a gross profit of $538 million, which was up 92% YoY. Unfortunately, in recent years, the company has found itself dragged into various lawsuits for a myriad of purposes. Currently, the company is caught in an antitrust lawsuit filed by REX over property listings.
The company had smooth progress in Q2; Rich Barton, Co-founder and CEO of Zillow Group credited the company’s success by stating:
“Of particular note, our iBuying business, Zillow Offers, continues to accelerate as we offer more customers a fast, fair, flexible and convenient way to move. Zillow Offers is proving attractive to sellers even in this sizzling-hot seller’s market.”
The company was quite forthright about its mission and overall goals, which included capturing more millennial buyers at low-interest rates, while also considering home-flexible work regulations and climate change policies.
Zillow has seen its share price fall roughly 25% in 2021 due to inflation fears and a tough housing market. However, this could make its current price a significant deal.
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Writer at MyWallSt
Pratiksha is a Writer here at MyWallSt. Pratiksha's favorite stock is a leader in the plant-based food market, Beyond Meat. She loves food and enjoys cooking for others. She recalls eating a vegetarian supper with her family as a child but found it impossible to replicate the recipe in a western market. Beyond Meat became her go-to dinner, which she blindly trusted. She invested in something she enjoyed when she decided to buy this stock. Her favorite Beyond Meat product is their burger, which she highly recommends!!!