Zoom remains a buy due to its large net cash position, high GAAP margins, and aggressive share repurchases, despite slow revenue growth. Competitive threats from Microsoft Teams and Google Meet are real, but these risks appear priced in, with the stock trading at just 14x earnings. While near-term revenue acceleration is unlikely, Zoom's financial fortress and recurring revenue offer downside protection and potential for multiple expansion.
Zoom Communications (ZM) closed the most recent trading day at $78.58, moving +1.28% from the previous trading session.
In the closing of the recent trading day, Zoom Communications (ZM) stood at $78.38, denoting a +1.85% move from the preceding trading day.
Zoom (ZM) has received quite a bit of attention from Zacks.com users lately. Therefore, it is wise to be aware of the facts that can impact the stock's prospects.
Zoom (ZM) reported earnings 30 days ago. What's next for the stock?
Despite macro risks, I recommend rotating into value stocks like Zoom, which is undervalued relative to its strong fundamentals and cash position. The Company continues to add enterprise clients, improve churn rates, and has raised its full-year outlook, signaling ongoing stability and growth. ZM's profitability focus, strong free cash flow, and expanding AI capabilities make it a standout value in the S&P 500.
ZM sees strong enterprise growth and AI adoption, with Zoom AI Companion usage up 40% QoQ, which investors can see as a compelling entry point now.
Zoom (ZM) has been upgraded to a Zacks Rank #2 (Buy), reflecting growing optimism about the company's earnings prospects. This might drive the stock higher in the near term.
Recently, Zacks.com users have been paying close attention to Zoom (ZM). This makes it worthwhile to examine what the stock has in store.
Explore Zoom's (ZM) international revenue trends and how these numbers impact Wall Street's forecasts and what's ahead for the stock.
Zoom Communications Inc. (NASDAQ:ZM ) Q1 2026 Earnings Conference Call May 21, 2025 5:00 PM ET Company Participants Charles Eveslage - Head of IR Eric Yuan - Founder & CEO Michelle Chang - CFO Conference Call Participants Siti Panigrahi - Mizuho Meta Marshall - Morgan Stanley Arjun Bhatia - William Blair Matthew Bullock - Bank of America William Power - Robert W. Baird Samad Samana - Jefferies Tyler Radke - Citigroup James Fish - Piper Sandler Allan Verkhovski - Scotiabank Catharine Trebinick - Rosenblatt Securities Tom Blakey - Cantor Fitzgerald Austin Cole - JMP Securities Peter Levine - Evercore Matthew Harrigan - Benchmark Operator Hello, and welcome to Zoom's Q1 FY '26 Earnings Release Webinar.
While the top- and bottom-line numbers for Zoom (ZM) give a sense of how the business performed in the quarter ended April 2025, it could be worth looking at how some of its key metrics compare to Wall Street estimates and year-ago values.