Investors with a lot of money to spend have taken a bearish stance on Zoom Communications (NASDAQ:ZM).And retail traders should know.We noticed this today when the trades showed up on publicly available options history that we track here at Benzinga.Whether these are institutions or just wealthy individuals, we don't know. But when something this big happens with ZM, it often means somebody knows something is about to happen.So how do we know what these investors just did? Today, Benzinga's options scanner ...

Core Viewpoint - Growth investors are increasingly focused on identifying stocks with above-average financial growth, which can lead to significant returns, but this task is challenging due to inherent risks and volatility associated with such stocks [1] Group 1: Growth Stock Identification - The Zacks Growth Style Score system aids in identifying promising growth stocks by analyzing real growth prospects beyond traditional metrics [2] - Zoom Communications (ZM) is currently highlighted as a recommended stock due to its favorable Growth Score and top Zacks Rank [2] Group 2: Earnings Growth - Earnings growth is crucial for growth investors, with double-digit growth being highly desirable as it indicates strong future prospects [4] - Zoom's projected EPS growth for this year is 106.4%, significantly surpassing the industry average of 101.7% [5] Group 3: Cash Flow Growth - Higher-than-average cash flow growth is essential for growth-oriented companies, allowing them to expand without relying on external funding [6] - Zoom's year-over-year cash flow growth stands at 15.8%, compared to an industry average of -17.3% [6] - The company's annualized cash flow growth rate over the past 3-5 years is 75.5%, well above the industry average of 15.2% [7] Group 4: Earnings Estimate Revisions - Positive trends in earnings estimate revisions correlate strongly with near-term stock price movements, making them a valuable metric for investors [8] - Recent upward revisions in current-year earnings estimates for Zoom have led to a 5.5% increase in the Zacks Consensus Estimate over the past month [9] Group 5: Overall Positioning - Zoom has achieved a Growth Score of B and a Zacks Rank of 2, indicating strong potential for outperformance based on the discussed factors [11]

Parkev Tatevosian, CFA has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Zoom Communications. The Motley Fool has a disclosure policy. Parkev Tatevosian is an affiliate of The Motley Fool and may be compensated for promoting its services. If you choose to subscribe through his link, he will earn some extra money that supports his channel. His opinions remain his own and are unaffected by The Motley Fool. ...

Core Insights - Zoom Communications (ZM) has shown resilience against the volatility affecting its software peers, likely due to the nature of video conferencing being less susceptible to disruption by AI [1] Company Analysis - The company operates in a sector with long growth runways, which is a positive indicator for future performance [1] - ZM is perceived as undervalued, presenting potential investment opportunities for growth-oriented investors [1] Analyst Perspective - The financial analyst, Julian Lin, emphasizes the importance of strong balance sheets and management teams when identifying investment opportunities [1] - The investment strategy includes a combination of growth principles and strict valuation hurdles to enhance the margin of safety [1]

Core Viewpoint - Brent crude oil futures remained stable as investors monitored the Russia-Ukraine peace talks and the upcoming OPEC+ meeting for indications of potential supply changes impacting prices [1] Group 1 - Investors are closely watching the progress of the Russia-Ukraine peace talks for potential implications on oil supply [1] - The outcome of the OPEC+ meeting scheduled for Sunday is anticipated to provide insights into future supply adjustments [1] - Current supply concerns are contributing to the pressure on oil prices [1]

Market Overview - U.S. equities continued to rise, with major indexes extending a multi-day winning streak, driven by optimism for a Federal Reserve interest rate cut in December and dovish economic data releases [1][8] - The Nasdaq Composite led the gains, climbing 1%, while the S&P 500 and Dow Jones Industrial Average rose 0.9% each, marking their fourth consecutive day of gains [2][3] Economic Indicators - Expectations for a 25-basis-point rate cut by the Federal Reserve in December are high, with probabilities around 80-85%, supported by weaker-than-expected economic data [3][6] - Recent economic data included a decline in September retail sales, a softer Producer Price Index (PPI), decreased consumer confidence, and a drop in private payrolls [3] Sector Performance - Technology stocks were the primary drivers of the market rally, with the "Magnificent Seven" technology stocks significantly contributing to the overall market performance [4] - The Health Care Select Sector SPDR and Consumer Discretionary Select SPDR also performed well, gaining 2.3% and 2.1% respectively, while the housing sector benefited from a decline in Treasury yields [4] Corporate News and Stock Highlights - Apple shares rose about 1% as it is expected to surpass Samsung in global smartphone shipments for the first time in 14 years [7] - Dell Technologies surged 6-6.4% after announcing record orders for its AI servers, indicating strong demand in the AI infrastructure space [11] - Advanced Micro Devices (AMD) rose approximately 3.5%, while Broadcom gained about 3% [11] - Nvidia experienced a significant drop of 2.6-3.9% on Tuesday but rebounded slightly on Wednesday, facing increased competition in the AI chip market [11] - Urban Outfitters soared between 10% and 12.1% after reporting stronger-than-expected quarterly results, while Workday sank 9% despite positive earnings [11] - Petco surged 19.8% after raising its fiscal year earnings outlook, and Robinhood Markets jumped 10.7% following plans to launch a futures and derivatives exchange [11]

Core Insights - Zoom Communications Inc. has achieved a new record high stock price following strong Q3 earnings and an optimistic growth outlook for the fiscal year [1][3] Financial Performance - The company reported a net income increase of 196% to $612.87 million from $207.05 million year-on-year [2] - Revenues grew by 4.2% to $1.23 billion compared to $1.18 billion in the same period last year, driven by a 6.1% increase in enterprise revenues and a 2% increase in online segment revenues [3] Future Outlook - For the full fiscal year 2026, Zoom expects revenues to be between $4.852 billion and $4.857 billion, with non-GAAP diluted EPS projected between $5.95 and $5.97 [4] - The company targets Q4 revenues of $1.23 billion to $1.235 billion, with non-GAAP diluted EPS expected to be between $1.48 and $1.49 [5] Strategic Vision - CEO Eric Yuan emphasized the company's commitment to building an AI-first platform aimed at enhancing connectivity and collaboration, which is contributing to revenue growth and profitability [4]

Revenue and Income - Revenue for the three months ended October 31, 2025, was $1,229.8 million, representing a 4.4% increase from $1,177.5 million in the same period of 2024[92]. - Net income for the three months ended October 31, 2025, was $612.9 million, compared to $207.1 million for the same period in 2024[92]. - Revenue for the nine months ended October 31, 2025, increased by $140.5 million, or 4.0%, to $3,621.8 million compared to $3,481.3 million in 2024, driven by a 6.3% growth in revenue from Enterprise customers[134]. Customer Segmentation - Revenue from Enterprise customers accounted for 60.3% of total revenue for the three months ended October 31, 2025, up from 59.4% in 2024[99]. - Revenue from Online customers represented 39.7% of total revenue for the three months ended October 31, 2025, down from 40.6% in 2024[100]. - The net dollar expansion rate for Enterprise customers was 98% as of October 31, 2025, consistent with the previous year[99]. - Customers contributing more than $100,000 of trailing 12 months revenue increased to 4,363 as of October 31, 2025, from 3,995 in 2024[111]. Profitability and Expenses - Gross profit for the three months ended October 31, 2025, was $958,065, a 7.2% increase from $893,660 in 2024, with a gross margin of 77.9% compared to 75.9% in 2024[126]. - Research and development expenses decreased by 5.8% to $210,097 for the three months ended October 31, 2025, primarily due to a reduction in stock-based compensation[127]. - Sales and marketing expenses decreased by 5.2% to $342,814 for the three months ended October 31, 2025, mainly due to lower stock-based compensation[129]. - General and administrative expenses decreased significantly by 24.9% to $94,740 for the three months ended October 31, 2025, largely due to prior-year accruals related to an SEC investigation[130]. - Gross profit for the nine months ended October 31, 2025, was $2,798.4 million, reflecting a 6.0% increase from $2,639.0 million in 2024, with a gross margin improvement to 77.3% from 75.8%[135][136]. - Research and development expenses decreased by $13.3 million, or 2.1%, to $621.9 million for the nine months ended October 31, 2025, primarily due to a reduction in stock-based compensation[137]. - Sales and marketing expenses decreased by $39.7 million, or 3.7%, to $1,028.8 million for the nine months ended October 31, 2025, mainly driven by a decrease in stock-based compensation[138][139]. - General and administrative expenses decreased significantly by $73.1 million, or 21.1%, to $273.9 million for the nine months ended October 31, 2025, due to a reversal of prior year accruals and reduced stock-based compensation[140]. Tax and Other Income - Provision for income taxes increased by 147.9% to $181,836 for the three months ended October 31, 2025, due to an increase in income before taxes[133]. - Provision for income taxes increased by $109.7 million, or 49.2%, to $332.6 million for the nine months ended October 31, 2025, primarily due to an increase in income before taxes[143]. - Gains on strategic investments for the three months ended October 31, 2025, were $406,060, a substantial increase from $6,324 in 2024[131]. - Other income, net, decreased by 14.3% to $78,235 for the three months ended October 31, 2025, primarily due to lower interest income from cash and marketable securities[132]. Cash Flow and Investments - Free Cash Flow (FCF) for the nine months ended October 31, 2025, was $1,585,642, an increase of 13.9% from $1,392,516 in 2024[114]. - Net cash provided by operating activities was $1,634.5 million for the nine months ended October 31, 2025, compared to $1,520.7 million in 2024, reflecting higher net income[150]. - Net cash used in investing activities was $330.2 million for the nine months ended October 31, 2025, primarily for marketable securities and property purchases[151]. - The company repurchased 16,624,306 shares of Class A common stock for an aggregate amount of $1,295.8 million during the nine months ended October 31, 2025[157]. Strategic Initiatives - The company continues to invest in AI capabilities, focusing on enhancing productivity and collaboration tools[89]. - New product innovations include AI Companion 3.0, expected to be available in December 2025, which will enhance task management and productivity features[105]. Risk Management - The company has not been exposed to material risks due to changes in interest rates due to the short-term nature of its investments[162]. - A hypothetical 10% change in interest rates would not have had a material impact on the historical condensed consolidated financial statements for the three and nine months ended October 31, 2025 and 2024[162].

stocks on the move as well as some calls. We're going to start with Zoom. We talked about it yesterday, Josh, with you heading into the print.They did post a stronger than expected earnings. They uh beat upbeat guide as well. Take a look at that.You made a nice uh you made a nice call on that yesterday. They also increased the buyback. What do you think now.>> I mean, you can't sell it. um they just delivered everything that people have been waiting for four years to see this company deliver this entire pos ...

Company Performance - Zoom reported stronger than expected earnings, beating guidance and increasing its buyback program, indicating positive momentum post-pandemic [1][2] - Third quarter total revenue for Zoom increased by 4.5% year-over-year, with GAAP operating margins at 25% and non-GAAP margins at 41% [2] - Cash flows for Zoom rose by 30% year-over-year, and the number of enterprise customers spending over $100,000 increased by 9% [3] Industry Trends - Applied Materials received a target price increase from UBS, reflecting a surge in memory demand and pricing, with expectations of a 20% increase in wafer fab equipment demand by 2026 [4][5] - Snowflake's target price was raised to 280 from 270, with anticipated product revenue growth of over 25% and operating margins expected to exceed previous estimates [6][7] - Live Nation is positioned as a key player in the entertainment sector, benefiting from a strong lineup of upcoming concerts, reinforcing its status as a valuable asset [8] Consumer Goods - Monster Beverage is noted for its ability to achieve double-digit revenue growth, outperforming typical growth rates in the consumer staples sector, with a 41% increase year-to-date [9][10] - Coca-Cola is also performing well, but Monster's diversification and international expansion are highlighted as significant strengths [9]