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Ooma shifts to cloud communications, targeting revenue doubling and margin growth, trading at a discount.

Analyst Insights
28 Oct 2026, 11:25 WIB
Seeking Alpha
View Source
Bullish
Ooma shifts to cloud communications, targeting revenue doubling and margin growth, trading at a discount.

Ooma is transitioning from a traditional residential phone service to a cloud communications platform focused on business services and AirDial POTS replacement. The company trades at a forward P/E of 14.54x, significantly lower than its peers, reflecting undervaluation. Management aims to double revenue within 3-4 years and expand margins to 20-25%, driven by recurring revenue and operational efficiencies. The stock is rated a Buy due to growth potential and improving earnings quality, though organic growth and GAAP results will be monitored.

Ooma cloud communications story provides context for the Technology sector market on Pluang. As of Oct 28, 2026 14:11 WIB, 78 of 150 US tech stocks rose and 70 fell. Notable movers include CTSH at USD 66.00 with 0% Sell / 100% Buy order activity, MU at USD 970.22 with 76% Sell / 24% Buy, and IT at USD 221.00 with 0% Sell / 100% Buy.

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