10 Best Video Conferencing Stocks to Buy

Published May 11, 2021 at 10:17 am EDT Updated August 19, 2026 at 4:55 am EDT

In this article we will take a look at the best video conferencing stocks to buy now. You can skip our detailed analysis of the video conferencing industry and go directly to 5 Best Video Conferencing Stocks to Buy.

Video conferencing services have become essential productivity tools ever since the pandemic-induced lockdowns forced employees to work from home and students to learn from home. Companies scrambled to look for conferencing tools that would help them maintain a productive workforce, thus highlighting the considerable potential for growth in the teleconferencing industry.

The video conferencing market does not seem to be saturated amid an increasing demand. Zoom Video Communications, Inc. (NASDAQ: ZM), for example, experienced a massive surge in demand for its services. Evercore ISI recently named Zoom Video Communications, Inc. (NASDAQ: ZM) in its quarterly enterprise technology spending survey. The survey indicates that IT spending is going to remain strong in the coming months with 80% of the survey respondents saying they expect to see their IT spending rise. According to the survey, some of the most notable companies going to benefit from this IT spending boom are Microsoft (NASDAQ:MSFT), Amazon.com (NASDAQ:AMZN), IBM, Zoom Video Communications, Inc. and Oracle.

Some other companies with strong video conferencing tools in the industry include Logitech International S.A. (NASDAQ: LOGI) Cisco Systems Inc (NASDAQ: CSCO), Alphabet Inc Class A (NASDAQ: GOOGL).

The State of the Video Conferencing Industry

Research conducted by Facts And Factors estimates that the global video conferencing market across the world was worth $4.8 billion in 2019. The report forecasts that it will be worth $9.2 billion by 2026, with an 11.45% compound annual growth rate. The enterprise video market was estimated at $14.8 billion in 2020 and is expected to be worth $23 billion by 2027.

Logitech International S.A. (NASDAQ: LOGI), famous for developing PC hardware, has also ventured into the teleconferencing space. However, rather than offering software solutions, the company offers hardware solutions designed to facilitate crisp video conferencing through high-resolution equipment. In the fourth quarter of 2020, Logitech International S.A. easily beat its EPS estimates. Revenue in the period jumped a whopping 117% to reach $1.54 billion, beating the Street by $400 million. Logitech International S.A.’s board took several steps to increase shareholder value, including approving an increased share buyback authorization of up to $1 billion. The board also approved a proposal for a fiscal year 2021 dividend. The dividend will be a 10% annual increase compared to the last year’s dividend.

Logitech International S.A. also raised its FY22 guidance for adjusted operating income.

A glance at stats related to video conferencing tools indicate that there is a huge market for robust and technically strong video conferencing companies. For example, GoToMeeting, an online meeting tool developed by software firm Citrix Systems, Inc. (NASDAQ: CTXS), hosts 18 million users worldwide every month and powers 80 million meetings per year. Florida-based Citrix Systems, Inc. in 2016 spun off GoTo product line into a new business entity as part of a $1.8 billion deal with LogMeIn. In April, Jefferies upgraded Citrix Systems, Inc. from Hold to Buy with a $180 price target. The firm’s analyst Brent Thill likes the company’s plan to covert 75% of their limited-use licenses to recurring licenses.

Alphabet Inc Class A video communications tool is also thriving, thanks to the rising demand after the pandemic. In April 2020, Alphabet’s CEO Sundar Pichai said that Google Meet was adding a whopping 3 million users per day. Perhaps the biggest edge Alphabet Inc Class A has in the video conferencing market is its wide penetration in the education sector. According to an April 2020 announcement, about 120 million students and educators were using G Suite for Education. Google Meet is a core part of G Suite for Education. Alphabet Inc Class A Google has added a variety of features to facilitate students and teachers for remote learning, beating its competitors in this specific area.

Cisco Systems Inc’s Webex is another major video conferencing tool that saw an explosive growth after the pandemic. However, Zoom Video Communications, Inc., which was ironically founded by a former Webex engineer Eric Yuan, is beating Cisco Systems Inc by wider margins. In December 2020, a survey by Enterprise Technology Research (ETR) showed that over 50% of the questioned companies preferred to use Zoom Video Communications, Inc., while 30% used Cisco’s Webex. Last month, Cisco Systems Inc gained after Deutsche Bank started covering the stock with a Hold rating. The bank said that Cisco’s current stock price reflects it has growth potential.

Wolfe also boosted its price target for Cisco Systems Inc to Outperform, citing an upbeat IT spending expected in the coming months.

The pandemic not only changed the way we interact, it also shook the financial markets to the core, which is directly affecting the famous money managers. The entire hedge fund industry is feeling the reverberations of the changing financial landscape. Its reputation has been tarnished in the last decade, during which its hedged returns couldn’t keep up with the unhedged returns of the market indices. On the other hand, Insider Monkey’s research was able to identify in advance a select group of hedge fund holdings that outperformed the S&P 500 ETFs by more than 124 percentage points since March 2017. Between March 2017 and February 26th 2021 our monthly newsletter’s stock picks returned 197.2%, vs. 72.4% for the SPY. Our stock picks outperformed the market by more than 124 percentage points (see the details here). We were also able to identify in advance a select group of hedge fund holdings that significantly underperformed the market. We have been tracking and sharing the list of these stocks since February 2017 and they lost 13% through November 16th. That’s why we believe hedge fund sentiment is an extremely useful indicator that investors should pay attention to. You can subscribe to our free newsletter on our homepage to receive our stories in your inbox.

Photo by Chris Montgomery on Unsplash

With this context and industry outlook in mind, let’s start our list of the 10 best video conferencing stocks to buy.

Best Video Conferencing Stocks to Buy

10. 8×8, Inc. (NYSE: EGHT)

No. of Hedge Fund Holders: 26

8×8, Inc. (NYSE: EGHT) provides integrated cloud services for virtual meetings, chats, voice communications, and contact centers. It recently announced product enhancements to facilitate hybrid work in line with recent research data, which found that 82% of organizations plan to adopt a hybrid work strategy that includes both remote and office work. EGHT ranks 10th in our list of best video conferencing stocks to buy.

Some of 8×8, Inc.’s latest offerings include 8×8 Work for Web and 8×8 Communications Platform as a Service (CPaaS) APIs. Apart from boosting the company’s revenue and solidifying its position among the best video conferencing stocks, the new offerings will make it easier for corporates to customize their workflows, third-party applications, and communications.

The solutions will give the company a strategic advantage in the CPaaS market, which is rapidly growing. Analysts estimate that it will be worth $25 billion by 2025. The expansion of 8×8, Inc. offerings gives it a strategic position to take advantage of the current growth in the segment.

9. ClearOne Inc. (NASDAQ: CLRO)

No. of Hedge Fund Holders: 3

ClearOne, Inc. (NASDAQ: CLRO) is one of the best video conferencing stocks that might be going unnoticed but is in a position to deliver significant growth. It provides solutions for video and audio communications through its COLLABORATE Space app. ClearOne ranks 9th in our list of best video conferencing stocks to buy.

The app is available on multiple platforms and is advertised as a one-stop-shop through which users can remain connected with friends, family, and even their co-workers. Its free version offers a desktop screen sharing feature and instant messaging. However, ClearOne, Inc.’s premium version offers tiers of audio and video quality with enterprise-grade solutions.

The company recently launched two new high-quality cameras designed to provide superior quality to what PC and laptop cameras offer, thus enhancing the online collaboration experience for users. ClearOne, Inc. has been benefiting from the increased demand for such solutions as video conferencing gains popularity.

8. Poly, Owned by Plantronics, Inc. (NYSE: PLT)

No. of Hedge Fund Holders: 16

A good video conferencing experience is not just about the video quality but also the audio quality, and this is the niche that Plantronics, Inc. (NYSE: PLT) is tapping into. Plantronics, Inc. ranks 8th in the list of the best video conferencing stocks to buy now. It provides a variety of products, including analytics software, desk phones, headsets, audio and video conferencing products that are designed to provide a high level of clarity. PLT ranks 8th in our list of best video conferencing stocks to buy. Like Microsoft, Zoom Video Communications, Inc. and Logitech International S.A., PLT has strong growth catalysts in the industry.

The company reported record-high sales from its professional audio and video equipment in its fiscal third quarter. One of its latest products is the Poly Studio P Series which is designed to provide the flexibility that professionals need so they can work from anywhere.

7. Avaya Holdings Corp. (NYSE: AVYA)

No. of Hedge Fund Holders: 35

Companies that provide cloud services are also considered among those that will benefit from the increased demand for video conferencing services and Avaya Holdings Corp. (NYSE: AVYA) is one of those companies. It has positioned itself to provide cloud services for contact-center-as-a-service. AVYA ranks 7th in our list of best video conferencing stocks to buy.

Avaya Holdings Corp. estimates that its fiscal 2021 revenue will be between $2.9 billion and $2.94 billion and earnings between $3.05 and $3.37 per share.

6. Logitech International S.A. (NASDAQ: LOGI)

No. of Hedge Fund Holders: 21

Logitech International S.A. ranks 6th in the list of the best video conferencing stocks to buy now.

One of Logitech’s latest offerings is Logitech Rally Bar, a video conferencing system that is compatible with Mac and PC devices. One of the highlights of this offering is its cinema-quality camera and an inbuilt microphone that has an impressive range. It is ideal for video conferencing in large rooms, but the company has other solutions such as the Logitech Rally Bar Mini, which is better suited for smaller rooms, and the Logitech RoomMate. Unlike Cisco Systems Inc, Citrix Systems, Inc. and Alphabet Inc Class A which are playing in the tough and competitive market of video conferencing software, Logitech has few competitors.

Logitech International S.A. reported $1.67 billion in sales in its fiscal Q3, which was 85% higher YoY, while its net income was $423 million. Its quarterly Non-GAAP earnings amounted to $2.45 per share, which was higher than the $1.02 Wall Street estimate.

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. 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.

Baron Opportunity Fund, in its Q1 2021 investor letter, mentioned Alphabet Inc.. 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. 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 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.

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. 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.

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