In this article we discuss the 5 best video conferencing stocks to buy. If you want to read our detailed analysis of the video technology industry, go directly to the 10 Best Video Conferencing Stocks to Buy.
5. Verizon Communications Inc. (NYSE: VZ)
No. of Hedge Fund Holders: 67
Verizon Communications Inc. (NYSE: VZ) is also included in the list of the best video conferencing stocks to buy now as it owns interoperable cloud-based video conferencing service BlueJeans.
Verizon ranks fifth in our list of best video conferencing stocks to buy.
While the platform provides video conferencing services, the telecommunications giant is determined to use it as a healthcare tool, thus the introduction of BlueJeans Telehealth. The latter aims to facilitate easier communication between administrators, healthcare providers, and patients. It will be available through the BlueJeans app, mobile browsers and desktop browsers.
4. Google Meet, Owned by Alphabet Inc. (NASDAQ: GOOGL)
No. of Hedge Fund Holders: 179
Alphabet Inc. (NASDAQ: GOOGL) is one of the largest internet companies globally. The company also has a video conferencing platform called Google Meet, which qualifies it to be among the best video conferencing stocks.
Alphabet ranks fourth in our list of best video conferencing stocks to buy.
Our calculations show that Alphabet Inc. (NASDAQ: GOOGL) ranks 4th in our list of the 30 Most Popular Stocks Among Hedge Funds.
Baron Opportunity Fund, in its Q1 2021 investor letter, mentioned Alphabet Inc. (NASDAQ: GOOGL). Here is what Baron Opportunity Fund has to say about Alphabet Inc. in its letter:
“Alphabet Inc., the parent company of Google, is discussed further in the Review and Outlook section above and the Top Purchases section below. Google is the world’s largest search and online advertising company, and a top cloud computing player. Shares rose in the quarter on strong fourth quarter results that saw solid revenue growth of 23% and expanding operating margins. Search grew 17%, YouTube grew 46%, and total cloud revenue grew 46%, with Google cloud computing meaningfully ahead. CEO Sundar Pichai began the earnings call with this statement: “The past year…accelerated the shift to cloud and adoption of online services. This has profound implications for all companies and consumers….Google’s products…have been a lifeline for millions of small, medium businesses hit hard by the pandemic.”
3. Cisco Systems, Inc. (NASDAQ: CSCO)
No. of Hedge Fund Holders: 60
Cisco Systems, Inc. (NASDAQ: CSCO) has a robust reputation as a leader in cloud computing, networking, and cybersecurity.
In Feb. 2021, Cisco CEO Chuck Robbins revealed that the Webex platform had 600 million users in fiscal Q2 after gaining 324 million users in March 2020.
According to our database, the number of CSCO’s long hedge funds positions increased at the end of the fourth quarter of 2020. There were 60 hedge funds that hold a position in Cisco Systems compared to 59 funds in the third quarter. The biggest stakeholder of the company is Generation Investment Management, with 23.3 million shares, worth $1.04 billion.
2. Microsoft Corporation (NASDAQ: MSFT)
No. of Hedge Fund Holders: 258
Microsoft Corporation (NASDAQ: MSFT) has been in the video conferencing segment since 2006 through Skype, but it also has another platform called Teams, developed as a workplace collaboration software. It is currently available in 41 countries. Teams has secured more than 40% market share in some countries such as the United Arab Emirates and Poland.
Teams is just one of the offerings from Microsoft that take advantage of the demand. Some of the other products in its portfolio include the Surface hardware lineup, through which users can access Microsoft Teams, although it is also available for non-Surface devices. Microsoft has also invested heavily in cloud computing solutions and gaming through its Xbox division. The two segments experienced significant demand during the pandemic.
Based on our calculations, Microsoft Corporation (NASDAQ: MSFT) ranks 2nd in our list of the 30 Most Popular Stocks Among Hedge Funds.
Baron Opportunity Fund, in its Q1 2021 investor letter, mentioned Microsoft Corporation (NASDAQ: MSFT). Here is what Baron Opportunity Fund has to say about Microsoft Corporation in its letter:
“Microsoft Corporation is a cloud-software Titan, and also discussed further in the Review and Outlook section above and the Top Purchases section below. Microsoft was a top contributor in the period because it trades at reasonable FCF and earnings valuations, has cloud and digital transformation tailwinds at its back, and reported an excellent December quarter, beating Street expectations by a wide margin. Microsoft’s results were strong across the board, with accelerating trends in Azure cloud computing and solid growth in its overall commercial cloud businesses. Azure accelerated to 48% constant-currency (“cc”) revenue growth from 47% the quarter before, and commercial cloud grew 32% cc, ahead of Street estimates at 26%. Microsoft’s profitability was also a significant beat, with operating income coming it at $17.9 billion, almost $3 billion ahead of Street estimates. Microsoft’s March quarter guidance also outstripped Street projections, with revenue growth of 16.5% versus the Street at 10.6%, and operating income over $1 billion ahead. CEO Satya Nadella began the earnings call with this proclamation: “What we are witnessing is the dawn of a second wave of digital transformation sweeping every company and every industry. Digital capability is key to both resilience and growth … Microsoft is powering this shift with the world’s largest and most comprehensive cloud platform … I’m energized by our increasing momentum and the expanding opportunity fueled by the structural change brought about by the rapid adoption of digital technology.””
1. Zoom Video Communications, Inc. (NASDAQ: ZM)
No. of Hedge Fund Holders: 59
Zoom Video Communications, Inc. (NASDAQ: ZM) experienced exponential growth in popularity and revenue in 2020 thanks to its status as the most popular video conferencing service. One of the reasons for its popularity was that users could hold a free video conference with 100 guests for up to 40 minutes, something that other platforms like Skype did not offer.
Zoom ranks first in our list of best video conferencing stocks to buy.
With an $848.5 million stake in Zoom, Philippe Laffont’s Coatue Management owns 2.5 million shares of the company as of the end of the fourth quarter of 2020. Our database shows that 59 hedge funds held stakes in ZM as of the end of the fourth quarter, versus 56 funds in the third quarter.
You can also take a peek at 10 Best Virtual Reality Stocks to Buy and 10 Best Games Coming in 2021.
