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11 Best Video Conferencing Stocks to Invest In

In this article, we will take a look at the 11 best video conferencing stocks to invest in. For having a detailed look at the top video conferencing stocks, head over to 5 Best Video Conferencing Stocks to Invest In.

The arrival of the pandemic at the end of 2019 forced a lot of companies to shut down their offices and move towards digital setups. This was one of the reasons virtual meetings became a norm because people switched to online conferences. As social distancing became a ritual, the only way for companies’ employees was to interact digitally and that’s why video conferencing stocks took a sharp jump during the pandemic.

It has now become essential for organizations to shift towards video conferencing in order to retain their productivity and keep the business flowing. From recruitment to selection, video conferencing still has a big adoption rate among firms.

One firm that had a huge market boost during the pandemic was Zoom Video Communications, Inc. (NASDAQ:ZM). Along with Zoom, a lot of other firms including Microsoft Corporation (NASDQ:MSFT) and Alphabet Inc. (NASDAQ:GOOG) saw their video conferencing features go up. The adoption rate was high because digital workplace was becoming one of the widely adopted measures.

According to a research study conducted by Nemertes’ Workplace Collaboration and shared by TechTarget, 21% of firms said that they experienced enhanced productivity when travel was cut and video conferencing adoption was implemented. Around 42.6% of companies surveyed prefer video communication over face-to-face meetings. Brick and mortar concept is fading and businesses are moving toward digital meetings. Forbes in 2020 predicted that virtual meetings’ adoption rate will rise 77% by 2023. And today the rate is similar to what the Forbes study predicted.

Global IT spending is increasing and is expected to be around $4.7 trillion by 2023, as showed by Gartner research. Video conferencing adoption over time is increasing because organizations are in competition against each other and it is important for them to mitigate their expenses and enhance sales. Companies including Adobe Inc. (NASDAQ:ADBE), Cisco Systems, Inc. (NASDAQ:CSCO), and Verizon Communications Inc. (NASDAQ:VZ) have spent a lot in IT because of the rapid adoption of video conferencing and a shift to digitalization. However, the start of digital meetings could be traced back to 2003 when Microsoft launched Skype. It was the start of virtual meetups even when Skype was not used as an official communication channel across organizations. At that time, Skype was used as an informal method of communication across countries. Since then, firms have introduced numerous video conferencing tools to retain their digital meetup market share. The arrival of Google Meet also completely changed the way companies interacted as it was widely implemented throughout the globe.

Looking ahead, the video conferencing industry is anticipated to reach a market value of about $17 billion by the end of 2030 with a compound annual growth rate of 11.9%, according to research led by Fortune Business Insights.

“The surging demand for remote learning and integration of developed technologies such as Internet of Things (IoT), Artificial Intelligence (AI), and cloud technology is expected to drive market growth in the near future,” Fortune Business Insights further added.

In terms of healthcare, the share of video conferencing solutions market is around $87 million in 2023 and its expected to rise with a compound annual growth rate of of 5.5% in the next 10 years.

Companies involved in the video conferencing sector should also be focusing on cloud-based adoptions. According to Forbes, the number of firms with multi-cloud practices will increase from 76% to 85% in 2024. The reason is that companies will prefer to utilize real-time data to stay ahead of competition rather than relying on stale information.

Considering video conferencing is not fading anytime soon, we decided to take a look at some of the best video conferencing stocks to invest in. Some major stocks that will appear later in our article are Zoom Video Communications, Inc. (NASDAQ:ZM), Adobe Inc. (NASDAQ:ADBE), Cisco Systems, Inc. (NASDAQ:CSCO), Verizon Communications Inc. (NASDAQ:VZ), and others.

Don’t miss: 10 Best Telecom Dividend Stocks To Buy for 2023

Our Methodology

To compile our list of the best video conferencing stocks to invest in, we filtered our list according to companies that had notable IT spending recently and whose video conferencing tools are being widely adopted by organizations across the globe. We then picked the top 20 video conferencing companies and ranked them according to the number of hedge fund investors having stakes in them at the end of Q2 from the Insider Monkey database of 910 elite hedge funds. The top 11 best video conferencing stocks were then selected in ascending order of the number of hedge funds investors..

Best Video Conferencing Stocks to Invest In

11. ON24, Inc. (NYSE:ONTF)

Number of Hedge Fund Holders: 20

Founded in 1998 and headquartered in San Francisco, California, ON24, Inc. (NYSE:ONTF) ranks 11th in our list of best video conferencing stocks to invest in. ON24, Inc. (NYSE:ONTF) offers a video conferencing platform for organizations and individuals. Its cloud-based digital engagement platform lets businesses carry out their virtual conferences and meetups in an interactive manner. The firm posted Q2 revenue including virtual conference of $42.1 million.

Insider Monkey took a look at 910 hedge funds portfolios for Q2 2023 investments and found out that 20 had a stake in ON24, Inc. (NYSE:ONTF). The largest shareholder was Lynrock Lake which owned 7.3 million shares of ON24, Inc. (NYSE:ONTF) for about $59.5 million.

10. 8×8, Inc. (NASDAQ:EGHT)

Number of Hedge Fund Holders: 21

8×8, Inc. (NASDAQ:EGHT) is a Campbell, California-based company which offers video conferencing services through its 8×8 Work platform that allows users to engage audio and video conversations. Founded in 1987, 8×8, Inc. (NASDAQ:EGHT) a multi-channel cloud-based contact center solution firm rolled out its video conferencing platform soon after its incorporation. The company also provides video conferencing services through 8×8 XCaaS platform. It posted fiscal Q3 revenue of $184.4 million, up 18% from a year ago.

Out of 910 hedge funds profiled by Insider Monkey for Q2 2023 investments, 21 had a stake in 8×8, Inc. (NASDAQ:EGHT). The biggest shareholder was Sylebra Capital Management which owned 14.4 million shares of 8×8, Inc. (NASDAQ:EGHT) for roughly $60.9 million.

9. RingCentral, Inc. (NYSE:RNG)

Number of Hedge Fund Holders: 37

RingCentral, Inc. (NYSE:RNG) was founded in 1999 and is headquartered in California. The company provides video conferencing services through its RingCentral Video feature. RingCentral, Inc. (NYSE:RNG) offers cloud-based, software-as-a-service solution. It reported an 11% increase in total revenue in Q2. Through its video conferencing software, up t0 500 people can join a meeting in Large Meetings feature and can host unlimited online conferences.

From the 910 hedge funds portfolios of Insider Monkey for second quarter of this year, 37 had a stake in RingCentral, Inc. (NYSE:RNG). Sylebra Capital Management owned the highest number of 8.2 million shares of RingCentral, Inc. (NYSE:RNG) that had a value of $267.2 million.

8. Zoom Video Communications, Inc. (NASDAQ:ZM)

Number of Hedge Fund Holders: 37

With a market capitalization of $19 billion, Zoom Video Communications, Inc. (NASDAQ:ZM) ranks 8th in our list of best video conferencing stocks to invest in. Founded in 2011 and headquartered in San Jose, California, Zoom Video Communications, Inc. (NASDAQ:ZM) offers one of the best video conferencing features through its Zoom Meetings platform. It also provides Zoom Phone and Zoom Chat features. In Q2, the US Postal Service added Zoom Team Chat for 21,500 users to their current Zoom for Government deployment. Dollar General Corporation (NYSE:DG) also selected Zoom’s Workvivo for workplace connection. Zoom Video Communications, Inc. (NASDAQ:ZM) posted revenue of $1.1 billion in fiscal Q2 that was 4% higher year-over-year. The firm is also rolling out AI-based features for its customers.

Insider Monkey took a look at 910 hedge funds portfolios for second quarter 2023 investments and found out that 37 had a stake in Zoom Video Communications, Inc. (NASDAQ:ZM). The largest shareholder was ARK Investment Management which had bought 10.5 million shares of Zoom Video Communications, Inc. (NASDAQ:ZM) for about $710.2 million.

7. Verizon Communications Inc. (NYSE:VZ)

Number of Hedge Fund Holders: 53

With a market capitalization of $129 billion, Verizon Communications Inc. (NYSE:VZ) ranks 7th in our list of best video conferencing stocks to invest in. Verizon Communications Inc. (NYSE:VZ) offers its cloud-based video conferencing features through Blue Jeans platform. The company introduced Blue Jeans in 2009 as a video conferencing tool and later on added cloud-based features as well. Verizon Communications Inc. (NYSE:VZ) posted Q2 EPS of $1.21 that came ahead of analysts’ expectations of $1.16, while consolidated revenue for the quarter was $32.6 billion.

53 hedge funds holders had a stake in Verizon Communications Inc. (NYSE:VZ), out of 910 hedge funds portfolios profiled by Insider Monkey for Q2. The largest shareholder was Citadel Investment Group with its holding of 6.9 million shares of the company that are valued at $256.6 million.

6. Cisco Systems, Inc. (NASDAQ:CSCO)

Number of Hedge Fund Holders: 55

Cisco Systems, Inc. (NASDAQ:CSCO) is a manufacturer and seller of internet protocol based networking which is related to the communications and information technology industries. The company was founded in 1984 and is headquartered in San Jose, California. With a market capitalization of $218 billion, Cisco Systems, Inc. (NASDAQ:CSCO) acquired WebEx in 2007 for $3.2 billion. WebEx by Cisco offers web conferencing, video conferencing and contact center services. In fiscal Q4, Cisco Systems, Inc. (NASDAQ:CSCO) reported total revenue of $15.2 billion, up 16% from a year earlier, while non-GAAP EPS was $1.14, up 37%.

From the Insider Monkey’s 910 hedge funds portfolios for second quarter 2023, 55 had a stake in Cisco Systems, Inc. (NASDAQ:CSCO). The largest shareholder was AQR Capital Management with its 11 million shares of the company that are valued at about $567.7 million.

Click to continue reading and see 5 Best Video Conferencing Stocks to Invest In.

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Disclosure: None. 11 Best Video Conferencing Stocks to Invest in is originally published on Insider Monkey.

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