How to Buy Zoom Stock Online in the UK

Ever since the coronavirus outbreak has entered our lives, video technology applications have become a necessity. One company that has made a huge success is Zoom Video Communications, which so far this year, has had a year-to-date total return of 305.45% as of July 2020. So, is now a good time to buy Zoom stock?

In this guide, we explain how to buy Zoom stock online in the UK. We also explore whether it is the right time to buy Zoom stock, investigate the current status of Zoom share price, the company’s history, review the top UK stockbrokers that offer Zoom share, and provide a step-by-step walkthrough of how you can buy Zoom today.

Step 1: Find a UK Stock Broker That Offers Zoom stock

In order to buy Zoom stock, you’ll need a share dealing broker that is authorized to place orders in the market on your behalf. Like most tech companies, Zoom is listed on the NASDAQ stock exchange, which is the second-largest stock exchange in the United States. But that should not prevent you from trading Zoom shares as you can find an online UK broker that allows you to buy and sell US shares.

You will have to investigate, however, whether the broker is FCA regulated, the fees and commissions the broker charges, and the stock trading tools it allows investors to use. To make things easier for you, we have listed the top stockbrokers in the UK offering to buy Zoom Video stock.

1. IG – A Reputable and Trusted UK Share Dealing Platform 

Launched in 1974, IG is one of the most popular and trusted brokerage firms in the UK. Not only does the broker allow you to buy Zoom stock but also gives you access to thousands of UK and international shares. Share trading on this platform is charged on a commission basis. You will pay a fixed rate of £3 per trade when buying and selling UK shares, however, you can buy and sell US shares commission-free.

IG offers a range of trading platforms and tools that includes the and MetaTrader4 compatibility and trading signals service alerts, so it’s an ideal choice for advanced traders. You will be able to open an account by depositing £250, which can be done via debit/credit card, bank account, and PayPal.

Besides IG shares dealing service, the broker offers spread betting and CFD trading accounts. When trading through one of these trading accounts, you will be able to leverage your capital with a leverage ratio of up to 5:1 on Zoom stock. Further, you can easily short sell Zoom shares without having the strict margin requirements of traditional share dealing services.

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Step 2: Research Zoom stock

Zoom is one of the most popular stay-at-home shares these days. The company’s video application provides a solution to the current situation caused by COVID-19, and as a result, Zoom has become a common word among everyone. Generally, Zoom Video Communications is a relatively new company in the share market and so far, it has enjoyed a healthy rise in sales and earnings following its IPO in April 2019.

But although the company attracts investors’ attention, it’s important that you make your own research before buying Zoom stocks, or other stocks like Amazon stock and Netflix stock. This way, you will be more confident through the buying shares process and while holding them for a long-period of time. In this section, we explore the company’s share price history and important factors to take into consideration.

Zoom Stock Price History

Zoom was founded in 2011 by Eric Yuan who had the vision to develop an easy-to-use video calls application. The software was officially launched in 2013 and reached a million users within a few months of its launch. In April 2019, Zoom shares were listed on the NASDAQ stock exchange at a price of $36. The share price spiked 72% on the first trading day and closed at $62. However, during 2019, the share has been consolidating, eventually closing the year at $66.64.

Zoom reached its all-time high of $271.63 on July 8, 2020, which means that Zoom is currently trading at its all-time high territory. The main catalyst for the surge in Zoom share price is the outbreak of the coronavirus that brought new users to Zoom Video Communications Inc. In fact, at the time of writing in July 2020, Zoom’s market capitalization has recently crossed the $50 billion mark following outstanding Q1 results. Consequently, Zoom is considered to be one of the best shares to buy these days by many trading experts.

Zoom Dividend Information

Zoom Video Communications, Inc. is still not in a strong enough position to distribute dividends to its shareholders. This does not come as a surprise since most tech companies, particularly during the first years of operation, do not typically distribute dividends. Technology companies often opt to reinvest profits back into the company for growth and expansion, so they do not pay dividends.

Should I Buy Zoom Stock?

As the share price reached its all-time high following the Q1 earnings results and the company has reported that its total number of daily meeting participants exceeded 300 million, it’s time to analyze the factors that make Zoom Video Communications an attractive investment option at the moment. As such, below we list some of the reasons why you should consider investing in the Zoom share:

Outstanding First Quarter Results

Zoom has reported total revenue of $328 million in the first quarter of 2020, a huge increase of 169% from the previous year and well above the $200 million that the company expected it would make during this period. The company has also announced an increase of 354% growth in users as compared to last year. The increase in revenue is mainly due to a surge in usage amid the global COVID-19 pandemic. Overall, Zoom has over 300 million daily meetings participants on its platform, up from 10 million in December.

Looking ahead, Zoom expects to continue growing, making a total revenue of $1.8 billion by the end of the year.

Zoom Sales Boom Amid the Coronavirus Pandemic

Zoom is one of the few companies fortunate enough to thrive during the coronavirus outbreak. Although Zoom’s shares have been on a steady uptrend since the company’s IPO last year, the main increase in profits happened during the COVID-19 outbreak. As we mentioned earlier, Zoom Video stock surged more than 300% so far in 2020.

Since many companies and schools have been forced to remote work and study, the Zoom video application has become much more than a regular video chat application and as the coronavirus is expected to reach its peak in the coming months, Zoom’s revenues are expected to continue growing in 2020.

A Leading Company in the Industry

When it comes to competition, Zoom is a market leader for video meeting solution alongside Microsoft and Cisco. While Zoom is facing intensifying competition, it remains immensely popular as it allows up to 100 participants in every meeting and up to 500 with large meeting add-on feature. On top of that, Zoom partners with top applications such as Box (file sharing) and Slack Technologies (a secured business communication platform) for high-quality functionalities. Despite many security issues that are the top priority for Zoom’s management team, Zoom is arguably the best free video conferencing software available in the market today.

The Verdict

So far this year, Zoom Video Communications has enjoyed an incredible performance with a surge of more than 300% in the share price value. The accelerated adoption of the Zoom application around the globe is unquestionable and as long as the coronavirus is here, Zoom is expected to see high levels of usage in the coming months. As such, some commentators consider it one of the best shares to buy of 2020.

Consequently, the share price of Zoom is trading near its all-time highs and the share momentum has been relatively strong lately. However, you still have to take into consideration that buying the Zoom share also carries a high level of risk.

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