Zoom Communications (ZM) has been one of the most searched-for stocks on Zacks.com lately. So, you might want to look at some of the facts that could shape the stock's performance in the near term.Over the past month, shares of this video-conferencing company have returned -11.7%, compared to the Zacks S&P 500 composite's -7% change. During this period, the Zacks Internet - Software industry, which Zoom falls in, has lost 17%. The key question now is: What could be the stock's future direction?While media r ...

The AI-first open work platform joins the ranks of Waymo, Nvidia, Duolingo, and more SAN JOSE, Calif., March 18, 2025 (GLOBE NEWSWIRE) -- Zoom Communications, Inc. (NASDAQ:ZM), has been named to Fast Company's prestigious list of the World's Most Innovative Companies of 2025 for the second year in a row. This year's list shines a spotlight on businesses that are shaping industry and culture through their innovations to set new standards and achieve remarkable milestones in all sectors of the economy. Alongs ...

The AI-first open work platform joins the ranks of Waymo, Nvidia, Duolingo, and more SAN JOSE, Calif., March 18, 2025 (GLOBE NEWSWIRE) -- Zoom Communications, Inc. (NASDAQ: ZM), has been named to Fast Company’s prestigious list of the World’s Most Innovative Companies of 2025 for the second year in a row. This year’s list shines a spotlight on businesses that are shaping industry and culture through their innovations to set new standards and achieve remarkable milestones in all sectors of the economy. Along ...

Zoom has added new artificial intelligence (AI) agentic skills to its AI Companion.These agentic skills have been deployed across the Zoom platform, the company said in a Monday (March 17) press release.“AI Companion is evolving from a personal assistant to being truly agentic, which signals a major leap forward in how AI can enhance productivity and collaboration at work,” Zoom Chief Product Officer Smita Hashim said in the release.AI Companion’s newest agentic skills include helping schedule meetings and ...

Zoom AI Companion expands agentic skills across the entire Zoom platform, using reasoning and memory to take action and orchestrate task execution, conversational self-service, custom agent creation, and moreMore than 45 new innovations announced, including AI enhancements for Zoom Meetings, Zoom Phone, Zoom Team Chat, Zoom Docs, and Zoom Contact Center, help users get more done, do their best work, and strengthen relationshipsNew Zoom customer experience (CX) innovations include next-generation enhancement ...

Core Viewpoint - Zoom Communications has experienced a significant stock price increase of 37% over six months, driven by demand for AI-focused communication tools, but recent quarterly results indicate potential growth challenges [1][2]. Financial Performance - For fiscal 2025, Zoom reported a revenue increase of 3.3% to approximately $4.7 billion in constant currency, with earnings per share rising 6.3% year over year to $5.54 on a non-GAAP basis [4]. - The company's fiscal 2026 guidance suggests a slowdown in revenue growth, with earnings per share expected to decline to a range of $5.34 to $5.37 [4]. Customer Metrics - Zoom's enterprise customer base showed minimal growth, reporting 192,600 customers at the end of the previous quarter, a slight increase from 191,000 at the beginning of the fiscal year [5]. - The net dollar expansion rate declined by 3 percentage points compared to the previous year, indicating that enterprise customers are spending less on the platform [7]. - The online monthly average churn rate increased to 2.8% quarter-over-quarter, although it was down by 20 basis points from the year-ago period, suggesting challenges in customer retention [8][9]. Market Outlook - Analysts maintain a positive outlook for Zoom, with a 12-month median price target of $92, indicating a potential upside of 21% from current levels [3]. - Despite the low valuation of 23 times earnings compared to the Nasdaq-100 index's 30 times, the stock may not be a smart buy without clear signs of growth acceleration [10][11].

Zoom Communications (ZM) has recently been on Zacks.com's list of the most searched stocks. Therefore, you might want to consider some of the key factors that could influence the stock's performance in the near future.Over the past month, shares of this video-conferencing company have returned -13.1%, compared to the Zacks S&P 500 composite's -4.1% change. During this period, the Zacks Internet - Software industry, which Zoom falls in, has lost 9.4%. The key question now is: What could be the stock's future ...

As the digital economy starts to go online across businesses and the world, investors have to be aware of the companies and services that will be at the forefront of this revolution. Apart from operations and backend systems, other everyday needs will need to be met through the use of technology, and this is where video conferencing and communications software come into play. However, they aren't all made equal, which is why Microsoft Co. NASDAQ: MSFT decided to discontinue Skype, its former service in the ...

Business Performance and Market Dynamics - The company experienced a significant increase in usage and subscriptions during the COVID-19 pandemic, leading to a shift in its customer base from primarily businesses and enterprises to a mix that includes consumers [83]. - The revenue growth rate has fluctuated in prior periods and may continue to decline, with factors such as increased competition and macroeconomic conditions contributing to this uncertainty [85]. - The company has seen a loss of users and customers due to current economic conditions, including high inflation, which may lead to reduced demand for its platform [96]. - Sales cycles for large organizations have lengthened, leading to greater deployment challenges and unpredictability in business outcomes [97]. - The company must continually attract new customers and retain existing ones, as any decline in renewals or upgrades could harm its business [82]. - The company operates in a competitive market with significant pressure from established players and new entrants, which may affect its pricing strategies [90]. - The introduction of new products by competitors could adversely affect the company's market position and financial condition [108]. - The company faces challenges in maintaining and expanding its network of resellers, which is crucial for increasing customer acquisition and sales [158]. Financial Health and Profitability - The company has incurred significant costs associated with upgrading infrastructure to meet increased demand, which may impact future profitability [93]. - The company has incurred net losses in the past and may continue to do so in the future, impacting profitability [101]. - Significant investments are planned in sales and marketing to attract new customers and expand services, which may lead to increased losses if revenue does not grow correspondingly [101]. - The company is focusing on converting free users to paid subscriptions, but many may never upgrade, affecting revenue potential [101]. - The company may incur substantial costs and lose the right to accept credit cards if it fails to meet evolving credit card association merchant standards, potentially leading to a significant decline in its customer and paid user base [166]. - The company may experience service outages or adverse consequences if it fails to satisfy government and industry-specific requirements in new markets [146]. Cybersecurity and Compliance Risks - Cybersecurity threats, including ransomware attacks, pose significant risks to the company's operations and reputation, with potential for severe financial consequences [119]. - The company has faced past security incidents that could lead to reputational damage and significant liabilities if similar events occur in the future [118]. - Increased scrutiny and negative publicity related to security vulnerabilities could harm customer trust and impact business growth [133]. - The company relies on third parties for critical business operations, which introduces additional cybersecurity risks and vulnerabilities [122]. - Compliance with varying data security laws can be costly and may lead to adverse consequences if not managed properly [130]. - The company is subject to various privacy and data protection laws, including the California Consumer Privacy Act, which imposes significant compliance costs and potential fines for noncompliance [180]. - The company may face significant consequences if it fails to comply with privacy, data protection, and information security obligations, including government enforcement actions and potential statutory damages [201]. Regulatory and Legal Challenges - The company is subject to compliance with international laws and regulations, which increases its cost of doing business and may lead to enforcement actions if not adhered to [150]. - The company has received subpoenas from the Department of Justice regarding interactions with foreign governments, including the Chinese government, which could lead to substantial fines and reputational harm [154]. - Geopolitical tensions, particularly between the United States and China, may lead to increased scrutiny of the company's operations in China, affecting its ability to conduct research and development [153]. - The company is subject to various anti-corruption laws, and non-compliance could adversely affect its business and financial condition [151]. - Legislative changes in states like Florida and Texas could limit the company's ability to moderate user-generated content, increasing legal risks and potential liabilities [212]. Operational and Strategic Considerations - The company is investing in research and development to enhance platform features and capabilities, particularly in AI and machine learning [107]. - The ability to expand marketing and sales capabilities is essential for increasing the customer base and achieving broader market acceptance [110]. - The company faces intense competition for skilled personnel, particularly software developers, which may impact its ability to attract and retain qualified employees [141]. - The company has limited experience in acquisitions, which may disrupt its business and dilute stockholder value if not managed effectively [173]. - The company has encountered risks and uncertainties typical of rapidly growing companies, which may strain its management and operational resources [138]. Financial Reporting and Stockholder Considerations - The company recognizes revenue from subscriptions over the terms of these subscriptions, which may delay the reflection of new sales in reported results [155]. - The trading price of Zoom's Class A common stock has been volatile, influenced by various market factors, which could affect investor returns [229]. - Future sales and issuances of capital stock could lead to substantial dilution for existing stockholders, potentially causing a decline in stock price [236]. - The company does not intend to pay dividends for the foreseeable future, focusing instead on retaining earnings for business operations and expansion [246]. - The company may require additional capital, and there is uncertainty regarding the availability of financing on favorable terms [253]. Environmental, Social, and Governance (ESG) Factors - The company is subject to increased scrutiny regarding environmental, social, and governance factors, which may impose additional costs and risks [264]. - The company is subject to various U.S. export control and sanctions laws, which could limit its ability to compete in international markets and increase costs [206]. - The company has inadvertently allowed access to its platform in potential violation of U.S. economic sanctions, which could result in fines and penalties if found in violation [207].

SAN JOSE, Calif., Feb. 27, 2025 (GLOBE NEWSWIRE) -- Today, Zoom Communications, Inc. (NASDAQ:ZM) and Mitel, a global leader in business communications, announced the global launch of a unique hybrid cloud solution that integrates Zoom Workplace and Zoom AI Companion with Mitel's flagship communications platforms, including its leading telephony solutions. This marks a significant milestone in the strategic partnership between the companies announced in September 2024. Today, organizations are navigating the ...