Zoom Video Communications, Inc. (ZM) represents a narrative of rapid adaptation, technological breakthrough, and significant influence in the realm of digital communication. Originating as a straightforward video conferencing tool, Zoom has transformed into an indispensable platform for global connectivity, particularly highlighted during periods of increased remote work and digital interaction.
Annual Returns of Zoom Stock (ZM)
| Year | Beginning | Ending | Gain/Loss | S&P 500 |
|---|---|---|---|---|
| 2023 | $66.66 | $71.91 | 7.88% | 24.73% |
| 2022 | $184.26 | $67.74 | -63.24% | -19.95% |
| 2021 | $359.98 | $183.91 | -48.91% | 28.79% |
| 2020 | $68.72 | $337.32 | 390.86% | 15.29% |
| 2019 | $62.00 | $68.04 | 9.74% | 28.71% |
The table above displays the ZM Yearly Return Rate, highlighting Zoom’s annual stock performance on a split-adjusted basis. This data does not include dividends, stock spin-offs, taxes, or transaction commissions.
Zoom (ZM) Stock History
The Pandemic Surge: 2020
In 2020, Zoom became a household name almost overnight as the COVID-19 pandemic forced the world to pivot to remote work and virtual communication. Starting the year at $68.72, Zoom’s stock price soared to an impressive $337.32 by year-end. This remarkable 390.86% increase reflected the sudden surge in demand for reliable video conferencing tools, significantly outperforming the S&P 500’s gain of 15.29%.
This period underscored Zoom’s critical role in keeping businesses, schools, and families connected during unprecedented times.
A Reality Check: 2021
Following the euphoric highs of 2020, Zoom faced a reality check in 2021. As the world slowly adapted to the new normal, and the initial panic subsided, Zoom’s stock began to normalize. Opening the year at $359.98, the stock experienced a steep decline, closing at $183.91. This represented a significant loss of 48.91%, a stark contrast to the S&P 500’s growth of 28.79%.
The correction reflected market adjustments and the challenges of maintaining hypergrowth outside the pandemic’s peak.
The Market Adjustment: 2022
The year 2022 marked a continued adjustment for Zoom, as it grappled with post-pandemic market realities and evolving consumer behaviors. Starting at $184.26, the stock further declined to $67.74 by year’s end, marking a -63.24% change.
This decline was sharper than the broader market’s downturn, as indicated by the S&P 500’s -19.95% performance. The year was a testament to the volatile nature of tech stocks and the shifting dynamics of remote work adoption.
Stabilization and Growth: 2023
In 2023, Zoom began to show signs of stabilization and modest growth. Opening at $66.66, the stock price modestly increased to $71.91, achieving a 7.88% gain. This growth, although modest, was significant in signaling a potential turnaround from the previous years’ steep declines. The S&P 500’s robust gain of 24.73% indicated a healthier market environment, with Zoom starting to regain its footing amidst the broader economic recovery.