Latest news with #ZoomCommunications
Yahoo
a day ago
- Business
- Yahoo
Zoom Rises 8% in 3 Months: Here's Why You Should Buy the Stock Now
Zoom Communications, Inc. ZM shares have gained 7.6% in the trailing three months, outperforming the Zacks Computer and Technology sector and the S&P 500 index's return of 4.8% and 0.9%, respectively. The stock has also outperformed the Zacks Internet – Software industry's growth of 1.1% in the same time outperformance can be attributed to the company's accelerating AI-driven innovation, which is reshaping productivity workflows across enterprises. From the rapid adoption of Zoom AI Companion to multi-product deals with Global 2000 firms, Zoom's platform expansion and improved churn rates have reaffirmed investor confidence in its near-term growth trajectory. The share price rise does not tell the whole story. Let's delve deeper into two factors driving ZM's growth to understand why the stock is a buy now. Zoom faces competition from legacy platforms like Cisco Systems' CSCO Webex and bundled productivity suites, such as Microsoft's MSFT Teams and Alphabet's GOOGL Google Workspace. While Cisco Systems' Webex and Microsoft Teams offer video meetings, messaging and file sharing, Alphabet's Google Workspace integrates Meet with email, calendar, chat, and collaboration tools in a unified platform. Zoom Communications, Inc. price-consensus-chart | Zoom Communications, Inc. Quote To differentiate itself, Zoom is doubling down on AI innovation to enhance productivity and customer value. One of its key growth drivers in the fiscal first quarter was its expanding portfolio of AI-powered tools. Adoption of Zoom AI Companion grew nearly 40% quarter over quarter, with usage expanding beyond meeting summaries to include answering questions, scheduling, content creation and more. Raymond James, a U.S.-based financial services firm, recently announced that it is rolling out AI Companion meeting summaries firm-wide, highlighting the product's enterprise also began monetizing its AI offerings through Custom AI Companion, launched in the fiscal first quarter. Early feedback from Global 2000 trial customers has been positive, with particular interest in features like 'Bring Your Own Dictionary,' meeting summary templates, and Jira integration. Zoom's enterprise segment showed solid momentum in the fiscal first quarter, with enterprise revenues growing approximately 6% year over year and accounting for 60% of total revenues, up two percentage points from the prior year. The number of customers contributing more than $100,000 in trailing 12-month revenues rose 8% year over year, representing 32% of total revenues in the fiscal first wins underscore this momentum. The Boston Celtics upgraded to Zoom Workplace Enterprise Plus and adopted Zoom Phone and Workvivo. A leading financial institution signed a deal exceeding $1 million in ARR, consolidating its tech stack by replacing Microsoft Teams and other tools with Zoom's AI-first platform. For the second quarter of fiscal 2026, Zoom expects total revenues between $1.195 billion and $1.2 billion. Revenues in constant currency are expected to be between $1.196 billion and $1.201 billion. Non-GAAP diluted earnings per share are anticipated to be between $1.36 and $1.37. The Zacks Consensus Estimate for fiscal second-quarter revenues is pegged at $1.2 billion, indicating year-over-year growth of 2.96%. The consensus mark for earnings is pegged at $1.37 per share, suggesting a year-over-year decline of 1.44%.ZM beat the Zacks Consensus Estimate for earnings in each of the trailing four quarters, with the average surprise being 9.46%. Zoom has strengthened itself in a competitive market as an AI-first platform. Additionally, its solid momentum across the enterprise segment in the first quarter of fiscal 2026, driven by continuous platform expansion, signals strong upside potential. ZM currently carries a Zacks Rank #2 (Buy), suggesting a compelling entry point in the stock for investors now. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Microsoft Corporation (MSFT) : Free Stock Analysis Report Cisco Systems, Inc. (CSCO) : Free Stock Analysis Report Alphabet Inc. (GOOGL) : Free Stock Analysis Report Zoom Communications, Inc. (ZM) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research
Yahoo
24-05-2025
- Business
- Yahoo
Piper Sandler Lifts Zoom (ZM) Target, Keeps Neutral Rating
On Thursday, May 22, Piper Sandler raised its price target for Zoom Communications Inc. (NASDAQ:ZM) from $77 to $85 but maintained a Neutral rating. This decision came after the company's recent quarterly results, which were considered relatively normal. Piper Sandler's analyst highlighted that Zoom Communications Inc.'s (NASDAQ:ZM) newer products like CX, Phone, ZVA, Workvivo, and AI Companion are becoming popular among existing customers. These products are also helping in longer deal durations and impacting the company's direct growth positively. A close-up of a hand using a laptop to control an immersive video meeting. Piper Sandler suggested that the company's guidance is conservative. However, the firm found reasons for encouragement and noted the price increase for Online Pro, growth in CX, adoption of the CX Elite package, faster growth of Workvivo, and the performance of the Phone product as positive signs. According to the analyst, while Zoom Communications Inc.'s (NASDAQ:ZM) core offerings are showing signs of stabilization, the company needs a catalyst to boost its growth trajectory. While we acknowledge the potential of ZM as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than ZM and that has a 100x upside potential, check out our report about the cheapest AI stock. READ NEXT: 11 Stocks That Will Bounce Back According To Analysts and 11 Best Stocks Under $15 to Buy According to Hedge Funds. Disclosure: None.
Yahoo
24-05-2025
- Business
- Yahoo
Robert W. Baird's Buy on Zoom (ZM) Driven by Innovation-Led Growth
Following the company's strong Q1 2026 (FY ends in January) results, Robert W. Baird analyst William Power published a note on May 22, highlighting his conviction in Zoom Communications Inc. (NASDAQ:ZM) and Buy rating. The company exhibited a solid performance in Q1, exceeding market expectations across revenue, EPS, and free cash flows. The number of customers contributing more than $100,000 in trailing 12-month revenue, an essential metric for gauging engagement, was up 8.0% year-over-year, implying growing enterprise adoption and sustained customer engagement. Antonio Guillem/ The analyst was particularly encouraged by Zoom's strong traction of its newer products and continued investments in improving customer experience. In his view, the robust results emphasized Zoom's platform's strength and commitment to AI-driven innovation. Power's confidence was further boosted as the company raised its revenue guidance for FY 2026 by around $15 million to $4.80-4.81 billion. The management attributed this hike to better pricing in the online division. Power also acknowledged the company's stock repurchase program and solid financial position to support his optimistic view. The analyst has a $100 price target on Zoom Communications (NASDAQ:ZM). Zoom Communications Inc. (NASDAQ:ZM) is a communications and collaboration technology company best known for its videoconferencing applications, Zoom and Zoom Workplace. Its video-first platform offers a range of communication tools, including video meetings, voice services, webinars, and chat. While we acknowledge the potential of ZM as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than ZM and that has 100x upside potential, check out our report about the cheapest AI stock. READ NEXT: The Best and Worst Dow Stocks for the Next 12 Months and 10 Unstoppable Stocks That Could Double Your Money. Disclosure: None. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
24-05-2025
- Business
- Yahoo
Robert W. Baird's Buy on Zoom (ZM) Driven by Innovation-Led Growth
Following the company's strong Q1 2026 (FY ends in January) results, Robert W. Baird analyst William Power published a note on May 22, highlighting his conviction in Zoom Communications Inc. (NASDAQ:ZM) and Buy rating. The company exhibited a solid performance in Q1, exceeding market expectations across revenue, EPS, and free cash flows. The number of customers contributing more than $100,000 in trailing 12-month revenue, an essential metric for gauging engagement, was up 8.0% year-over-year, implying growing enterprise adoption and sustained customer engagement. Antonio Guillem/ The analyst was particularly encouraged by Zoom's strong traction of its newer products and continued investments in improving customer experience. In his view, the robust results emphasized Zoom's platform's strength and commitment to AI-driven innovation. Power's confidence was further boosted as the company raised its revenue guidance for FY 2026 by around $15 million to $4.80-4.81 billion. The management attributed this hike to better pricing in the online division. Power also acknowledged the company's stock repurchase program and solid financial position to support his optimistic view. The analyst has a $100 price target on Zoom Communications (NASDAQ:ZM). Zoom Communications Inc. (NASDAQ:ZM) is a communications and collaboration technology company best known for its videoconferencing applications, Zoom and Zoom Workplace. Its video-first platform offers a range of communication tools, including video meetings, voice services, webinars, and chat. While we acknowledge the potential of ZM as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than ZM and that has 100x upside potential, check out our report about the cheapest AI stock. READ NEXT: The Best and Worst Dow Stocks for the Next 12 Months and 10 Unstoppable Stocks That Could Double Your Money. Disclosure: None. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
24-05-2025
- Business
- Yahoo
Piper Sandler Lifts Zoom (ZM) Target, Keeps Neutral Rating
On Thursday, May 22, Piper Sandler raised its price target for Zoom Communications Inc. (NASDAQ:ZM) from $77 to $85 but maintained a Neutral rating. This decision came after the company's recent quarterly results, which were considered relatively normal. Piper Sandler's analyst highlighted that Zoom Communications Inc.'s (NASDAQ:ZM) newer products like CX, Phone, ZVA, Workvivo, and AI Companion are becoming popular among existing customers. These products are also helping in longer deal durations and impacting the company's direct growth positively. A close-up of a hand using a laptop to control an immersive video meeting. Piper Sandler suggested that the company's guidance is conservative. However, the firm found reasons for encouragement and noted the price increase for Online Pro, growth in CX, adoption of the CX Elite package, faster growth of Workvivo, and the performance of the Phone product as positive signs. According to the analyst, while Zoom Communications Inc.'s (NASDAQ:ZM) core offerings are showing signs of stabilization, the company needs a catalyst to boost its growth trajectory. While we acknowledge the potential of ZM as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than ZM and that has a 100x upside potential, check out our report about the cheapest AI stock. READ NEXT: 11 Stocks That Will Bounce Back According To Analysts and 11 Best Stocks Under $15 to Buy According to Hedge Funds. Disclosure: None.
