Zoom Communications initiated with an Underweight at KeyBanc
KeyBanc analyst Jackson Ader initiated coverage of Zoom Communications (ZM) with an Underweight rating and $73 price target
Confident Investing Starts Here:
Easily unpack a company's performance with TipRanks' new KPI Data for smart investment decisions
Receive undervalued, market resilient stocks right to your inbox with TipRanks' Smart Value Newsletter
Published first on TheFly – the ultimate source for real-time, market-moving breaking financial news. Try Now>>
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Business Insider
an hour ago
- Business Insider
How Meta Platforms' (META) Shrewd Energy Strategy Fortifies Future Earnings
Tech giant Meta Platforms (META) has entered into a 20-year power purchase agreement (PPA) with Constellation Energy's (CEG) Clinton nuclear plant in Illinois. The deal secures over 1 gigawatt of carbon-free electricity at approximately $80 per megawatt-hour (MWh), helping Meta manage long-term energy costs and mitigate exposure to an increasingly volatile electricity market. Confident Investing Starts Here: Easily unpack a company's performance with TipRanks' new KPI Data for smart investment decisions Receive undervalued, market resilient stocks right to your inbox with TipRanks' Smart Value Newsletter By locking in stable energy rates, Meta is not only insulating itself from future price swings but also ensuring a reliable power supply for its rapidly expanding data center infrastructure—critical to its AI-driven growth strategy. The recent news has put a strong bid into META stock, helping the company add almost 5% to the value of its shares over the past five days. This move reinforces Meta's position as a leading force in AI-powered social platforms and signals a strong, strategic commitment to sustainable and scalable energy solutions. Accordingly, I am reaffirming my bullish stance on META stock on the back of the CEG joint venture. Rising Power Demand Forces Meta Into Strategic Deal Meta's decision comes at a critical juncture, as U.S. power demand is rising significantly for the first time in decades, primarily driven by the explosive growth of data centers supporting AI, cloud computing, and automation. Utilities have already warned that electricity generation capacity may not scale quickly enough to meet this accelerating demand. PJM, the nation's largest grid operator, has projected potential capacity shortfalls as early as 2030, citing plant retirements outpacing new development. This growing supply-demand imbalance has already introduced volatility in energy markets. In 2022, wholesale power prices averaged roughly $80 per megawatt-hour (MWh) for the first time in over a decade, primarily due to surging natural gas prices that heavily influence market rates. While prices eased in 2023, the macro trends—especially from increasing compute intensity—suggest a renewed upward trajectory starting in 2025. For Meta, whose operations are becoming increasingly energy-intensive, this volatility carries real risk. The company's electricity usage jumped more than 30% last year, reaching approximately 15 terawatt-hours, exposing it to significant cost fluctuations. By securing a long-term nuclear PPA, Meta is effectively insulating itself from future price shocks—stabilizing its operating margins and providing greater long-term predictability for profitability. Meta's Nuclear Energy Strategy to Commence in 2027 Starting in 2027 and continuing through 2047, Meta will purchase the full output—1,121 megawatts—of electricity generated by Constellation's Clinton Power Station. As a 24/7/365 baseload source, nuclear energy plays a critical role in supporting intermittent renewables like solar and wind. Urvi Parekh, Meta's Head of Global Energy, underscored the strategic importance of the deal, stating that 'securing clean, reliable energy is necessary to continue advancing our AI ambitions.' While financial terms were not publicly disclosed, analysts estimate the agreement is priced near $80 per megawatt-hour. Meta secured advantageous terms by helping extend the life of an existing nuclear facility. The deal effectively replaces Illinois' expiring zero-carbon credit subsidies in 2027, allowing the Clinton reactor to remain operational without additional ratepayer support. In return, Meta locks in a long-term, carbon-free power supply—shielded from fuel price volatility and future grid constraints. Constellation's CEO praised the agreement as a forward-thinking private-sector model, highlighting Meta's recognition of the strategic value in maintaining the nation's nuclear infrastructure. Meta's decision to secure a stable, long-term energy supply offers a clear strategic advantage—particularly as Big Tech intensifies efforts to lock in reliable power sources to support rapidly expanding, energy-intensive AI workloads. Microsoft, for instance, has signed a 20-year power purchase agreement (PPA) tied to the planned restart of the Three Mile Island facility, reportedly at a mid-range but competitive price of approximately $110 per megawatt-hour. Meanwhile, Google is backing small modular reactor (SMR) technology through its investment in Kairos Power, aiming to integrate nuclear energy into its operations by 2030, alongside broader commitments to renewables. Amazon Web Services is also expanding into the nuclear space, supporting advanced reactor startup X-energy to potentially power future AWS data centers in high-demand regions, such as Virginia and the Pacific Northwest. What is the Price Target for Meta Platforms? On Wall Street, Meta stock has a consensus Strong Buy rating, based on 41 Buys, three Holds, and one Sell rating attained over the past three months. The average META stock price target is $697.55, indicating ~2% upside potential over the next 12 months. However, the high estimate is $918, and my own target is about $800. This means a potential 15% return over the next 12 months or nearly a 30% return if the high estimate is met. Meta Wins by Being Strategic on Energy Meta's nuclear power agreement delivers clear strategic advantages in terms of energy reliability and cost certainty. By effectively hedging against future energy price volatility, the company mitigates a key operational risk and reinforces its ability to maintain stable profit margins over time. This long-term visibility into energy costs not only enhances financial resilience but also ensures a secure energy supply to support the company's expanding AI infrastructure. Additionally, Meta's direct investment in carbon-free energy aligns with the values of environmentally conscious and ESG-focused investors, likely bolstering long-term sentiment around the stock. In essence, this move transforms a historically volatile cost center into a strategic asset—positioning Meta for decades of consistent energy management and sustained profitability amid an increasingly dynamic tech and power landscape.
Business Insider
an hour ago
- Business Insider
Eve Holding files $300M mixed securities shelf
17:23 EDT Eve Holding (EVEX) files $300M mixed securities shelf Confident Investing Starts Here: Easily unpack a company's performance with TipRanks' new KPI Data for smart investment decisions Receive undervalued, market resilient stocks right to your inbox with TipRanks' Smart Value Newsletter
Business Insider
an hour ago
- Business Insider
Eve Holding files to sell 9M shares of common stock for holders
17:23 EDT Eve Holding (EVEX) files to sell 9M shares of common stock for holders Confident Investing Starts Here: Easily unpack a company's performance with TipRanks' new KPI Data for smart investment decisions Receive undervalued, market resilient stocks right to your inbox with TipRanks' Smart Value Newsletter Published first on TheFly – the ultimate source for real-time, market-moving breaking financial news. Try Now>>
