ZM ZM Zoom Video Communications Loading... : Bullish and Bearish Analyst Opinions

Zoom has appointed former Oracle CFO Jeffrey E. Epstein to its Board of Directors.

Zoom's stake in AI startup Anthropic has grown to a value of 3.13 billion dollars according.

Peter Gassner uses his experience on Zoom's board as a historical example of a fundamentally better product disrupting incumbents, drawing parallels to Aspen.

Zoom beat Q2 estimates and raised guidance but shares fell on soft Q3 EPS outlook.

News wire reports multiple price target cuts across a broad set of stocks including DKS, INTU.

Morgan Stanley, Jefferies, Citigroup, and other firms raised price targets on over twenty.

Macro and earnings brief covering Treasury pressure, Hormuz risk, and Nvidia options mispricing.

Pre-market movers show Intuit plunging on weak guidance.

Premarket movers report shows mixed stock reactions to earnings and guidance.

Zoom's current-quarter sales outlook matched analyst estimates.

ZM results mixed, no clear directional call

Zoom reports second quarter revenue up 4.9% year over year with enterprise revenue growing 7.8%.

Zoom reports solid fiscal second quarter results with revenue up 4.9 percent year over year.

Zoom's core product competes directly with a free alternative from Microsoft (Teams). A business model built on charging for what a mega-cap competitor gives away for free is fundamentally flawed long-term. Short ZM as its market share and pricing power will inevitably erode against MSFT. Zoom may announce new AI features or enterprise partnerships to justify its valuation.

AlphaSense experts express cautious optimism about Zoom's future growth prospects ahead of its.

Zoom's revenue growth decelerated from 368.8% to 191.4% in mid-2021, preceded by a drop in deferred revenue growth. Despite growth falling to single digits, stock-based compensation scaled up massively (from 10.4% of revenue in FY21 to 29.3% in FY23), showing a broken compensation structure. Insiders also dumped $1.216 billion in stock. The company's fundamental growth engine stalled while management continued to extract massive value via SBC, making it a structural avoid. A sudden reacceleration in enterprise software spending or a buyout offer could spike the stock.

Zoom has $8B in cash and a $2B investment in Anthropic, with the street beginning to re-rate the valuation. The massive cash pile provides significant optionality; if management deploys it for growth or returns it via special dividends, the stock will appreciate. Go long on ZM as a value play with a massive cash cushion and potential catalysts for shareholder returns. Management fails to deploy cash effectively, or core business growth remains stagnant.

$31.5b market cap minus $0.9b cash, $6.8b marketable securities, and $6.4b investments leaves ~$17.4b for the core Zoom business. If the Anthropic stake is worth ~$6b and core FCF remains above $1.1b, Zoom's underlying business may be undervalued. Long Zoom as a value play on the cheap core business plus hidden AI-asset upside. Anthropic IPO valuation may not hold; Zoom's growth could decelerate; SBC-adjusted FCF may overstate true cash generation.

Zoom more than video; rated Buy.

Author sarcastically notes that swing trading these stocks could have yielded huge returns.

The author sarcastically notes that swing trading these stocks could have yielded massive.

Author explains why Zoom is held as an AI company with early Anthropic exposure.

ZM long: Anthropic stake plus NVIDIA AI re-rating

Companies noted on Anthropic's cap table

Zoom noted as early Anthropic investor

ZM: Anthropic stake + IPO catalyst undervalued

ZM holds Anthropic stake; IPO catalyst ahead

The author reviews a 3-month portfolio performance with past-tense holdings and gains.

Strong enterprise growth and cheap valuation appeal.

Zoom AI pivot and buybacks support stock.