Core Viewpoint - The Schall Law Firm is investigating claims against Zoom Communications Inc. for potential violations of securities laws, focusing on whether the company made false or misleading statements or failed to disclose important information to investors [1]. Group 1 - The investigation is initiated on behalf of investors who may have suffered losses related to Zoom Communications Inc. [1] - The Schall Law Firm specializes in securities class action lawsuits and shareholder rights litigation, representing investors globally [2].

Core Viewpoint - Zoom Communications has experienced a stock return of -6.9% over the past month, underperforming the Zacks S&P 500 composite's +1% change and the Zacks Internet - Software industry's -4.4% change, raising questions about its near-term stock performance [1] Earnings Estimate Revisions - The consensus earnings estimate for the current quarter is $1.43 per share, reflecting a +3.6% change year-over-year, with a +1.7% increase in the estimate over the last 30 days [4] - For the current fiscal year, the consensus earnings estimate is $5.83, indicating a +5.2% change from the prior year, with a +1.2% increase in the estimate over the last 30 days [4] - The next fiscal year's consensus earnings estimate remains at $5.83, showing a -0.1% change from the previous year, with a -1.1% decrease in the estimate over the past month [5] Revenue Growth Projections - The consensus sales estimate for the current quarter is $1.21 billion, indicating a +3% year-over-year change, while estimates for the current and next fiscal years are $4.82 billion and $4.97 billion, reflecting changes of +3.4% and +3%, respectively [10] Last Reported Results and Surprise History - In the last reported quarter, Zoom generated revenues of $1.22 billion, a +4.7% year-over-year change, with an EPS of $1.53 compared to $1.39 a year ago [11] - The company exceeded the Zacks Consensus Estimate for revenues by +1.66% and for EPS by +11.68% [11] - Zoom has consistently beaten consensus EPS and revenue estimates in the last four quarters [12] Valuation - Zoom holds a Zacks Value Style Score of C, indicating it is trading at par with its peers, which suggests a balanced valuation relative to its competitors [16] Bottom Line - The Zacks Rank 1 (Strong Buy) for Zoom suggests potential outperformance compared to the broader market in the near term [17]

Core Insights - Zoom Communications, Inc. has announced a strategic go-to-market partnership with Oracle to enhance customer experience through faster resolutions and intelligent self-service [1][2] - The partnership allows Zoom CX to operate on Oracle Cloud Infrastructure, expanding its reach to more organizations [2] - Oracle has adopted Zoom Contact Center for its global customer service operations, integrating it with Oracle Service workflows [2][3] Partnership Benefits - The collaboration aims to unify customer interactions, employee workflows, and data into a single intelligent system, resulting in faster resolutions and stronger relationships [3][6] - Customers will benefit from a unified customer engagement platform that integrates various communication channels such as voice, chat, email, and social media [6] - The integration provides a 360-degree view of customers, streamlining interactions and enhancing informed decision-making [6] Employee Productivity - The partnership is designed to eliminate manual data entry and communication silos, allowing employees to focus more on relationship-building rather than administrative tasks [6] - The solutions are particularly beneficial for industries such as healthcare, financial services, retail, and hospitality, leveraging Oracle's existing industry-specific solutions [6] Global Trust and Security - The integration ensures consistent, high-quality interactions across different geographies and industries, supported by enterprise-grade security and compliance [6]

Core Viewpoint - Analysts are warning of a potential correction in the AI-led stock rally, but this does not imply that investors should avoid high-quality AI companies, as corrections can happen quickly and without warning [2]. Group 1: AI and Market Trends - The AI market is experiencing elevated stock valuations, which analysts believe cannot sustain indefinitely, indicating a forthcoming "reckoning" [2]. - Despite the anticipated correction, investors are encouraged to focus on position sizing rather than making binary in-and-out decisions [2]. Group 2: Hedge Fund Interest - Hedge funds are increasingly investing in specific stocks, with research indicating that mimicking top hedge fund picks can lead to market outperformance [5]. Group 3: Company Highlights - **Mosaic Co (NYSE:MOS)**: The company is experiencing a multi-month breakout and expects tight phosphate markets through 2025 due to limited supply and lower inventories [6][7]. - **Advanced Micro Devices Inc (NASDAQ:AMD)**: The company is positioned to improve its market share in AI applications by 2027, despite current reliance on OpenAI for capital spending [8][9]. - **Howmet Aerospace Inc (NYSE:HWM)**: The company reported record financial results in 2024 and continued strong performance in Q1 2025, with significant stock repurchases [10][11]. - **TKO Group Holdings Inc (NYSE:TKO)**: The company is expected to grow EBITDA at a mid-teens rate for 2025, with a focus on renewing UFC media rights, which account for over 15% of revenues [12][14][15]. - **Zoom Communications Inc (NASDAQ:ZM)**: The company is no longer viewed as a growth story, with low single-digit revenue growth and a significant decline in customer growth rates [17][18]. - **DoorDash Inc (NASDAQ:DASH)**: The leading food delivery platform in the U.S. exceeded expectations with a 19% year-over-year growth in orders and a 56% rise in adjusted EBITDA [18][19].

Core Viewpoint - Zoom Communications Inc. is currently under investigation for potential securities fraud violations, which may impact its stock performance and investor confidence [1] Group 1 - The investigation is being conducted by the DJS Law Group, indicating potential legal implications for the company [1] - Investors are encouraged to discuss their rights in light of the ongoing investigation, suggesting that there may be significant repercussions for shareholders [1]

Core Insights - Zoom Communications, Inc. announced that its AI-first cloud phone system, Zoom Phone, has surpassed 10 million seats globally, indicating a significant milestone in modernizing business communications [1][2][3] Company Overview - Zoom Phone, launched in 2019, has rapidly become one of the fastest-growing cloud telephony solutions, reflecting a shift from traditional PBXs to unified, AI-first communications [2][3] - The platform is built on Zoom's reliable and scalable architecture, offering enterprise-grade features and flexibility to enhance collaboration and customer engagement for businesses of all sizes [2][5] Market Impact - The achievement of 10 million seats demonstrates a global rethinking of phone systems, with organizations recognizing the value of simpler management, reduced costs, and AI-powered interactions [3] - A notable example includes the Sydney Film Festival, which reported an 81% cost savings during its core period after switching to Zoom Phone [3] Product Features - Zoom Phone integrates calling, meetings, messaging, and contact center functionalities into a single solution, supported by innovations in AI and mobility [3] - The system offers PSTN coverage in over 49 countries and territories, with a claimed uptime of 99.999%, ensuring resilient communication across various devices and locations [5] Company Mission - Zoom's mission focuses on providing an AI-first work platform to enhance human connection and productivity, with offerings like Zoom Workplace and Zoom Contact Center to strengthen customer relationships [6]

Company Performance - Zoom Communications closed at $79.48, reflecting a -1.91% change from the previous day, underperforming the S&P 500's loss of 0.38% [1] - Over the past month, Zoom's shares have decreased by 4.76%, while the Computer and Technology sector gained 7.44% and the S&P 500 increased by 4.06% [1] Upcoming Financial Results - The company is expected to report an EPS of $1.42, representing a 2.9% increase from the prior-year quarter, with revenue anticipated at $1.21 billion, up 2.99% from the previous year [2] - For the entire year, earnings are forecasted at $5.81 per share and revenue at $4.82 billion, indicating increases of +4.87% and +3.38% respectively compared to the previous year [3] Analyst Estimates and Rankings - Recent changes to analyst estimates for Zoom Communications reflect shifting business dynamics, with upward revisions indicating positive sentiment towards the company's operations [4] - The Zacks Rank system currently rates Zoom Communications as 1 (Strong Buy), with a 1.12% rise in the Zacks Consensus EPS estimate over the past month [6] Valuation Metrics - Zoom Communications has a Forward P/E ratio of 13.94, which is a discount compared to the industry average Forward P/E of 30 [7] - The company has a PEG ratio of 6.94, significantly higher than the Internet - Software industry average PEG ratio of 2.35 [7] Industry Context - The Internet - Software industry, part of the Computer and Technology sector, holds a Zacks Industry Rank of 81, placing it in the top 33% of all industries [8]

Group 1 - Zoom Communications, Inc. (ZM) is recognized as a leader in the 2025 Gartner Magic Quadrant for Unified Communications as a Service (UCaaS), marking its sixth inclusion in this category [2] - RBC Capital has reaffirmed an Outperform rating for Zoom with a price target of $100, highlighting the company's operating margins between 33% and 36% and gross margins at 76.38% [3] - The company's online division has stabilized, and there are opportunities for growth in other markets [3] Group 2 - Zoom's continuous efforts in AI, including the announcement of AI Companion 3.0, enhance its position as a leading provider of secure collaboration and telehealth solutions across various sectors [4] - Zoom for Healthcare offers secure telehealth and virtual care options for healthcare professionals globally, reinforcing its status as a high-quality stock [5] - Zoom is one of the 13 best quality stocks to buy according to hedge funds, supported by hedge fund interest and a significant profit margin [1]

Core Viewpoint - Zoom Communications is experiencing a mixed performance in the stock market, with a recent decline in share price and lower growth compared to its sector and the S&P 500 index [1][2]. Financial Performance - The upcoming earnings report for Zoom Communications is expected to show an EPS of $1.42, reflecting a 2.9% increase year-over-year, and revenue of $1.21 billion, indicating a 2.99% rise compared to the same quarter last year [2]. - For the entire fiscal year, earnings are projected at $5.81 per share and revenue at $4.82 billion, representing increases of 4.87% and 3.38% respectively from the previous year [3]. Analyst Sentiment - Recent revisions to analyst estimates suggest optimism regarding Zoom Communications' business and profitability, with a consensus EPS projection increasing by 1.12% in the past 30 days [5][6]. - The company currently holds a Zacks Rank of 1 (Strong Buy), indicating strong analyst support [5]. Valuation Metrics - Zoom Communications is trading at a Forward P/E ratio of 14.2, significantly lower than the industry average of 30.19, suggesting it is undervalued [6]. - The PEG ratio for Zoom is 7.06, compared to the Internet - Software industry's average PEG ratio of 2.3, indicating a disparity in growth expectations [6]. Industry Context - The Internet - Software industry, part of the Computer and Technology sector, has a Zacks Industry Rank of 59, placing it in the top 24% of over 250 industries, which suggests a strong overall performance [7].

Core Viewpoint - Zoom Communications is experiencing a mixed performance in the stock market, with a recent decline in stock price despite positive earnings forecasts and a strong Zacks Rank indicating potential for growth [1][6]. Financial Performance - The upcoming earnings report for Zoom Communications is expected to show an EPS of $1.42, reflecting a 2.9% increase from the same quarter last year, with projected quarterly revenue of $1.21 billion, up 2.99% year-over-year [2]. - For the annual period, earnings are anticipated to be $5.81 per share and revenue is expected to reach $4.82 billion, indicating increases of 4.87% and 3.38% respectively compared to the previous year [3]. Analyst Estimates - Recent adjustments to analyst estimates for Zoom Communications suggest a positive outlook for the company's business operations and profitability, with upward revisions indicating confidence in short-term performance [4]. - The Zacks Consensus EPS estimate has increased by 1.12% over the past month, and Zoom Communications currently holds a Zacks Rank of 1 (Strong Buy), which has historically outperformed the market [6]. Valuation Metrics - Zoom Communications is currently trading at a Forward P/E ratio of 14.39, significantly lower than the industry average of 31, indicating that the stock is undervalued compared to its peers [7]. - The company has a PEG ratio of 7.16, which is higher than the Internet - Software industry's average PEG ratio of 2.27, suggesting that the stock's expected earnings growth is not fully reflected in its price [8]. Industry Context - The Internet - Software industry, part of the Computer and Technology sector, has a Zacks Industry Rank of 59, placing it in the top 24% of over 250 industries, indicating a strong competitive position [8][9].