Buying an index fund or an exchange-traded fund could help you invest in Zoom while also diversifying your portfolio. Index funds and exchange-traded funds (ETFs) follow a market index and allow you to invest in hundreds of different companies through a single fund. There are also a variety of funds that have Zoom as one of their portfolios.
So Zoom is well-liked. Is its stock, however, appropriate for your portfolio? Continue reading to learn how to decide whether or not to buy Zoom stock.
The following steps should be kept in mind while considering buying zoom stock:
1. Research Zoom, its technology, and it's stock
As businesses continued to incorporate Zoom's technology into their work, profits more than tripled in the 2020 fiscal year, from $7.6 million to $25.4 million. (It's worth remembering that NerdWallet makes use of Zoom.)
However, profitability is just one consideration to consider before purchasing a stock. Zoom's most recent annual report, as well as its S-1 filing, are also available on the company's investor relations website. These documents provide a wealth of knowledge about the company's activities, finances, clients, case studies, leadership team, challenges, and opportunities for development. In other terms, anything that can assist investors in making a decision.
2. see how Zoom stock fits in your portfolio
Is purchasing Zoom going to put you too far into the technology sector? Is it likely that it will bias your portfolio too strongly against stocks as a whole? (As opposed to financial analysts' advice to maintain a balance between stocks and safer assets like bonds.) These types of questions, as well as keeping an eye on the big picture, will help you stay on track with your investing objectives.
Buying an index fund or an exchange-traded fund could help you invest in Zoom while also diversifying your portfolio. Index funds and exchange-traded funds (ETFs) follow a market index and allow you to invest in hundreds of different companies through a single fund. There are also a variety of funds that have Zoom as one of their portfolios.
