Core Viewpoint - Zoom's fourth quarter earnings report is perceived as mixed, leading to a decline in share prices despite a solid revenue growth of 5.3% in the enterprise segment and 7.1% overall [1][8]. Group 1: Importance of AI - In the age of AI, Zoom is positioned to become more essential by bridging human-to-human interactions with system actions, streamlining workflows that traditionally require manual updates [2][4]. - The company emphasizes that human-to-human interactions remain crucial for driving business outcomes, while AI can enhance human-to-system interactions by automating tasks [4][6]. Group 2: Monetization and Market Position - Zoom is confident in its ability to monetize its technology in the near term, leveraging its unique position in facilitating human interactions [6][8]. - The company acknowledges concerns regarding competition from various AI applications but maintains a focus on its core strength in human interactions [7][8]. Group 3: Financial Performance and Investments - Despite missing earnings per share (EPS) expectations due to tax issues, the company expresses confidence in future growth, particularly looking towards fiscal year 2027 [8]. - Zoom holds a stake in Anthropic, which has generated a significant pre-tax gain of $532 million in Q4, but the company is not considering selling this stake at the moment [9].

For the quarter ended January 2026, Zoom Communications (ZM) reported revenue of $1.25 billion, up 5.3% over the same period last year. EPS came in at $1.44, compared to $1.41 in the year-ago quarter.The reported revenue compares to the Zacks Consensus Estimate of $1.23 billion, representing a surprise of +1.18%. The company delivered an EPS surprise of -2.87%, with the consensus EPS estimate being $1.48.While investors scrutinize revenue and earnings changes year-over-year and how they compare with Wall St ...

Zoom is expected to report an EPS of $1.48 and revenue of approximately $1.23 billion for the quarter.The company projects a 4% revenue increase, driven by AI expansion and strategic partnerships.Zoom's non-GAAP operating margin is anticipated to be 38.9%, indicating strong operational efficiency.Zoom Video Communications (NASDAQ:ZM) is gearing up to release its quarterly earnings on February 25, 2026. Analysts expect the company to report earnings per share (EPS) of $1.48, with revenue projected to reach a ...

Core Insights - Wall Street analysts expect Zoom Communications (ZM) to report quarterly earnings of $1.48 per share, reflecting a year-over-year increase of 5% [1] - Revenue is anticipated to reach $1.23 billion, which is a 4.1% increase from the same quarter last year [1] - The consensus EPS estimate has remained unchanged over the past 30 days, indicating a reassessment of projections by analysts [1] Revenue Estimates - Geographic Revenue from Asia Pacific (APAC) is expected to be $150.92 million, showing a 3% increase from the prior year [4] - Geographic Revenue from Europe, Middle East, and Africa (EMEA) is projected to reach $195.15 million, indicating a 4.3% increase year-over-year [4] - Geographic Revenue from the Americas is forecasted at $886.69 million, reflecting a 4.2% increase from the previous year [4] Customer Metrics - The average prediction for Enterprise Customers stands at 187,139, down from 192,600 in the same quarter last year [5] - Analysts estimate that Customers generating over $100K in TTM Revenue will total 4,431, compared to 4,088 in the same quarter last year [5] Performance Obligations - Current Remaining Performance Obligation (RPO) is expected to be $2.40 billion, up from $2.25 billion reported in the same quarter last year [6] - Remaining Performance Obligations (RPO) are estimated at $4.05 billion, compared to $3.80 billion in the same quarter last year [6] - Non-Current Remaining Performance Obligation (RPO) is projected to reach $1.64 billion, an increase from $1.55 billion reported in the same quarter last year [7] Stock Performance - Over the past month, Zoom shares have returned +7.5%, while the Zacks S&P 500 composite has seen a -0.8% change [7] - Currently, ZM holds a Zacks Rank 3 (Hold), suggesting its performance may align with the overall market in the near future [7]

Core Insights - The article compiles significant research calls from Wall Street that are influencing market movements, highlighting upgrades for various companies based on their recent performance and future potential [1] Group 1: Company Upgrades - B. Riley upgraded Snap (SNAP) to Buy from Neutral with a price target of $10, citing early signs of progress in revenue growth from premium subscribers and higher margin advertising formats [2] - Seaport Research upgraded FuboTV (FUBO) to Buy from Neutral with a price target of $3, viewing the recent drop in shares post-merger with Disney's Hulu Live as an opportunity amidst uncertainty [2] - Wolfe Research upgraded Zoom Communications (ZM) to Outperform from Peer Perform with a price target of $115, believing the company's growth is set to reaccelerate, particularly in its contract center and phone business, along with emerging voice AI [2] - Jefferies upgraded Celanese (CE) to Buy from Hold with a price target of $86, indicating that despite expected choppy earnings in the first half of 2026, it is a good time to buy the dips [2] - Cantor Fitzgerald upgraded DigitalOcean (DOCN) to Overweight from Neutral with a price target of $68, emphasizing the company's developer-first approach to hyperscale services as well positioned for market growth [2]

Core Viewpoint - Zoom has maintained strong demand and user retention post-pandemic, allowing for continued investment in its services and value creation for customers [2]. Group 1: Company Performance - During the pandemic, Zoom's video conferencing platform experienced unprecedented demand, making it a sought-after technology investment [1]. - Post-pandemic, Zoom has successfully retained a significant number of its users, countering expectations of cash flow deterioration [2]. - The company has shown impressive revenue and earnings growth, indicating that its success is not merely a pandemic-related phenomenon [6]. Group 2: Investor Interest - There has been a notable increase in investor interest in Zoom, particularly following its investment in AI company Anthropic, which analysts view as a potential growth driver [5][7]. - Analysts, including those from Baird, have identified Zoom as a top investment opportunity, suggesting that its recent stock performance reflects this positive sentiment [5][6]. Group 3: Financial Capacity - Zoom possesses the cash flow and balance sheet strength to support strategic investments, which is appealing to market participants looking for companies with excess capital [9]. - The company's ability to reinvest in its core business or pursue high-growth opportunities in the AI sector is seen as a significant advantage [9].

Core Viewpoint - Zoom's stock price surged over 11% following Baird's report highlighting its investment in AI company Anthropic as a potentially undervalued asset [1] Group 1: Investment Insights - Baird analyst William Power emphasized that Zoom's $51 million investment in Anthropic could be a "hidden gem" that has not been fully appreciated by the market [1] - The investment in Anthropic, known for its Claude series AI models, was completed by Zoom's venture capital arm in 2023 [1] Group 2: Financial Projections - Baird reiterated a "outperform" rating for Zoom, maintaining a target stock price of $95 [1] - Based on Anthropic's recent valuation of $350 billion for a $10 billion funding round, Zoom's stake could be valued between $2 billion to $4 billion [1] - Anthropic's annualized revenue has recently surpassed $9 billion [1]

Core Insights - Zoom Communications' investment in Anthropic, the developer of the Claude AI model, is gaining market attention, with the investment's book value potentially rising to between $2 billion and $4 billion [1] - Zoom's stock surged by 9.8% to $94.22, marking its highest closing price since August 22, 2022, driven by interest in its revenue growth and AI business opportunities [1] - The investment of $51 million in Anthropic is expected to contribute significantly to Zoom's profit growth, as highlighted by Baird analyst William V. Power [1] Group 1: Financial Impact - Zoom's strategic investment in Anthropic has begun to reflect in its financial reports, with the company reporting $406.1 million in strategic investment gains for Q3, largely attributed to the appreciation of its stake in Anthropic [2] - Baird estimates that most, if not all, of the reported investment gains are derived from the increase in value of the Anthropic investment [2] - The potential return on this investment is heightened by Anthropic's plans for an IPO, raising questions about how much further its value could increase [2] Group 2: Strategic Advantages - The investment in Anthropic not only provides financial returns but also offers strategic advantages for Zoom's AI product development, enhancing its capabilities in meeting notes and summaries [3] - Zoom's strong R&D engine has been exploring AI for years, and the partnership with Anthropic is expected to enable the addition of more AI features to the Zoom platform [3] - This collaboration gives Zoom a differentiated advantage in the competitive enterprise communication market, benefiting from Anthropic's advancements in generative AI technology [3] Group 3: Market Sentiment - Despite the positive impact of the Anthropic investment, analysts remain cautious about Zoom's stock outlook, with only 52% of surveyed analysts rating it as a buy or equivalent, which is below the average buy rating of 56% for S&P 500 constituents [4] - Baird maintains a "outperform" rating on Zoom's stock with a target price of $95, indicating a cautious optimism [4] - Zoom's stock is still down approximately 83% from its all-time high during the pandemic in October 2020, as the company seeks new growth drivers through AI transformation and strategic investments [4]

Core Insights - The large-cap growth sector is expected to face challenges in 2026 due to high valuation multiples and uncertainty regarding the profitability of significant AI investments made this year [1] Group 1: Market Outlook - The market is anticipated to wobble, indicating potential volatility in large-cap growth stocks [1] - There is a need to explore overlooked stocks to outperform the market in the upcoming period [1] Group 2: Analyst Background - Gary Alexander has extensive experience in technology sectors, having worked on Wall Street and in Silicon Valley, and has advised several seed-round startups [1] - He has been a contributor to Seeking Alpha since 2017 and has been featured in various web publications [1]

Core Viewpoint - The article emphasizes a fundamentals-based approach to value investing, highlighting the importance of long-term growth and robust balance sheets over low valuation multiples [1]. Group 1: Investment Philosophy - The company believes that not all low multiple stocks are cheap, and it seeks firms with steady long-term growth and no cyclicality [1]. - There is a recognition that investing in successful companies carries risks, particularly regarding valuation, but some opportunities may justify higher prices due to expansive growth potential [1]. Group 2: Company Focus - The analysis specifically mentions Zoom Video Communications (ZM) as a company with improved valuation and new growth vectors, leading to a buy recommendation [1].