Group 1: Industry Outlook - Morgan Stanley's report indicates that the disruptive impact of AI continues to suppress sentiment in the software industry, and Q2 earnings reports from SaaS companies are unlikely to alleviate concerns [1] - Individual stock performance is expected to diverge, with companies that exceed expectations and raise guidance likely to see significant stock price increases, while those with weak key metrics or slowing growth will heighten market concerns about AI competition or business models [1] Group 2: Company Ratings and Expectations - Morgan Stanley maintains a "Hold" rating on Box (BOX.US), expecting strong Q1 performance to continue into Q2, with potential for significant upward revisions to full-year guidance due to conservative expectations and a stable macroeconomic environment [1] - Morgan Stanley also holds a "Hold" rating on DocuSign (DOCU.US) with a target price of $86, anticipating that Q2 billings may exceed expectations due to a low base effect, but expressing caution regarding potential disappointments in Q3 and the overall outlook for the second half of the year [1] - For Asana (ASAN.US), Morgan Stanley maintains a "Reduce" rating with a target price of $13, noting that while Q2 performance may be stable, growth rates in the second half could slow to mid to high single digits, leading to stock price fluctuations if guidance does not show significant adjustments [2] - Morgan Stanley gives Zoom (ZM.US) a "Hold" rating, expecting Q2 results to significantly exceed market expectations, but indicating that sustained accelerated growth will require more time, thus maintaining a cautious outlook until the company's prospects become clearer [2]

Core Insights - Zoom Video Communications is set to report its Q2 results on August 21, 2025, with historical data indicating a 74% likelihood of negative one-day stock movements post-earnings, averaging a decline of -7.7% [2][3] Financial Performance - Current consensus forecasts for the upcoming quarter predict earnings per share (EPS) of $1.38 on revenue of $1.2 billion, compared to $1.39 EPS on $1.16 billion in revenue for the same quarter last year [3] - Zoom's market capitalization is currently $22 billion, with trailing twelve-month revenue of $4.7 billion, operating profit of $852 million, and net income of $1.0 billion [4] Historical Earnings Reaction - Over the past five years, there have been 19 observations of Zoom's one-day post-earnings returns, with only 5 positive returns, indicating a 26% chance of a positive reaction [7] - The median return for the 5 positive instances was 8.0%, while the median for the 14 negative returns was -7.7% [7] Post-Earnings Strategy - A pre-earnings strategy suggests weighing historical odds of positive versus negative reactions to inform positions before earnings releases [6] - A post-earnings strategy involves evaluating immediate reactions in relation to medium-term performance to guide trading decisions after earnings announcements [6] Correlation with Peers - Historical data indicates that peer performance can influence Zoom's post-earnings reactions, with potential pricing-in occurring prior to the earnings release [9]

Core Viewpoint - Wall Street analysts anticipate a slight decline in Zoom Communications' quarterly earnings per share, with a projected EPS of $1.37, reflecting a year-over-year decrease of 1.4%, while revenues are expected to increase by 3% to $1.2 billion [1]. Earnings Projections - Over the past 30 days, the consensus EPS estimate has been revised downward by 1.1%, indicating a collective reassessment by analysts of their initial forecasts [2]. - Changes in earnings projections are crucial for predicting investor reactions, as empirical studies show a strong correlation between earnings estimate trends and short-term stock price movements [3]. Revenue Estimates - Analysts estimate 'Geographic Revenue - Asia Pacific (APAC)' to be $146.13 million, representing a year-over-year increase of 2.7% [5]. - 'Geographic Revenue - Europe, Middle East, and Africa (EMEA)' is projected to reach $190.04 million, indicating a 3% increase from the previous year [5]. - The 'Geographic Revenue - Americas' is estimated at $862.08 million, reflecting a 3.2% year-over-year growth [6]. Customer Metrics - The average prediction for 'Enterprise Customers' stands at 186,862, down from 191,600 in the same quarter last year [6]. - Analysts expect 'Customers >$100K TTM Revenue' to reach 4,233, an increase from 3,933 reported in the same quarter of the previous year [7]. Remaining Performance Obligations (RPO) - The 'Current Remaining Performance Obligation (RPO)' is expected to be $2.45 billion, up from $2.28 billion year-over-year [7]. - Total 'Remaining Performance Obligations (RPO)' are projected at $4.00 billion, compared to $3.78 billion in the previous year [8]. - 'Non-Current Remaining Performance Obligation (RPO)' is forecasted to reach $1.53 billion, slightly up from $1.50 billion reported last year [8]. Stock Performance - Zoom shares have decreased by 2.3% over the past month, contrasting with a 3.5% increase in the Zacks S&P 500 composite [8].

Core Insights - Zoom Communications, Inc. has introduced a new concierge use case for Zoom Virtual Agent, integrated with Zoom Phone, enhancing call handling and support for businesses [1][2] - The company launched Zoom Hub, a centralized content center for organizing and managing Zoom assets, along with enhanced AI features across Zoom Meetings and Team Chat [1][6] Zoom Virtual Agent (ZVA) Concierge - The ZVA concierge offers a 24/7 AI receptionist that provides a personalized experience, handling tasks such as booking appointments and routing calls without long hold times [2][3] - It supports multilingual conversations in several languages including English, Spanish, French, German, Portuguese, and Japanese, ensuring a consistent experience for callers [3][4] Use Cases for ZVA Concierge - In healthcare, the ZVA concierge can quickly connect patients to the right care, answer common questions, and allow appointment bookings after hours [7] - In retail, it assists customers in finding products, checking stock availability, and scheduling pickups without human intervention [7] - In manufacturing, it captures service requests and guides customers through troubleshooting, directing them to the appropriate team [7] - In financial services, it provides personalized service by gathering information and resolving requests efficiently [7] AI Companion Features - The AI Companion enhances meeting scheduling by analyzing calendars and time zones to suggest convenient meeting times, eliminating scheduling friction [8][9] - It automates the coordination process, sending invites and tracking responses in real-time, ensuring quick meeting confirmations [10] Zoom Hub - Zoom Hub serves as a central workspace for users to create, manage, and organize Zoom files, integrating with AI Companion for efficient content creation [11] - It consolidates various Zoom assets, including meeting recordings and documents, to streamline user experience [11] Zoom Team Chat Enhancements - The integration of AI Companion into Zoom Team Chat allows users to draft messages and summarize documents without opening files, improving productivity [12][14] - These updates are included at no additional cost for paid Zoom Workplace plans, reinforcing Zoom's commitment to an AI-first collaboration platform [14]

Group 1: Stock Performance - Zoom Communications (ZM) closed at $73.14, with a +1.78% change from the previous day, outperforming the S&P 500's daily loss of 0.29% [1] - Over the past month, ZM shares have depreciated by 3.67%, underperforming the Computer and Technology sector's gain of 6.11% and the S&P 500's gain of 3.25% [1] Group 2: Upcoming Earnings - Zoom Communications is set to announce its earnings on August 21, 2025, with analysts expecting earnings of $1.37 per share, reflecting a year-over-year decline of 1.44% [2] - The consensus estimate for revenue is $1.2 billion, indicating a 3% increase compared to the same quarter last year [2] Group 3: Full-Year Estimates - The full-year Zacks Consensus Estimates project earnings of $5.58 per share and revenue of $4.8 billion, representing year-over-year changes of +0.72% and +2.98%, respectively [3] Group 4: Analyst Estimates and Stock Performance - Recent adjustments to analyst estimates for Zoom Communications are indicative of changing near-term business trends, with positive revisions signaling analysts' confidence in business performance [4] - Estimate alterations are linked to stock price performance, and investors can utilize the Zacks Rank for actionable insights [5] Group 5: Zacks Rank and Valuation - The Zacks Rank system, ranging from 1 (Strong Buy) to 5 (Strong Sell), has a strong track record, with 1 stocks delivering an average annual return of +25% since 1988; currently, Zoom Communications holds a Zacks Rank of 3 (Hold) [6] - Zoom Communications is trading with a Forward P/E ratio of 12.87, significantly lower than the industry average of 28.79, suggesting it is trading at a discount [7] Group 6: PEG Ratio and Industry Context - The current PEG ratio for Zoom Communications is 10.82, compared to the Internet - Software industry's average PEG ratio of 2.23, indicating a higher valuation relative to projected earnings growth [8] - The Internet - Software industry, part of the Computer and Technology sector, has a Zacks Industry Rank of 69, placing it in the top 28% of over 250 industries [8][9]

Core Points - Sigma Corporation of America has announced that its Sigma 300-600mm F4 DG OS | Sports lens has won the EISA ULTRA-TELEPHOTO ZOOM LENS award for 2025-2026 [1][2]. Product Features - The Sigma 300-600mm F4 DG OS | Sports lens is specifically designed for sports, action, and wildlife photography, featuring a brightness of F4, which is superior to most competitors that typically range from F5.6 to F6.3 [3]. - The lens includes 13 aperture blades that contribute to its soft bokeh effect and is composed of 28 elements arranged in 21 groups, incorporating FLD, SLD, and high refractive index lenses for effective chromatic aberration correction and excellent sharpness across all focal lengths [3]. - It utilizes an HLA (High-response Linear Actuator) motor for internal focusing and has a barrel designed to minimize heat absorption and prevent dust ingress [3]. - The lens features a function ring with two modes: Focus Preset and Power Focus, making it an excellent choice for wildlife and action photographers [3]. About EISA - The Expert Imaging and Sound Association (EISA) consists of 54 technology magazines, websites, and social media commentators from 27 countries, focusing on various electronics categories [4]. - EISA annually awards the best products in each class with the prestigious EISA Award [4].

Company Performance - Zoom Communications' stock increased by 1.54% to $72.06, outperforming the S&P 500's gain of 1.47% on the same day [1] - Over the past month, Zoom's shares declined by 9.68%, underperforming the Computer and Technology sector's gain of 3.41% and the S&P 500's gain of 0.64% [1] Upcoming Earnings Report - The company is set to release its earnings report on August 21, 2025, with an expected EPS of $1.37, reflecting a 1.44% decrease from the same quarter last year [2] - Quarterly revenue is anticipated to be $1.2 billion, which is a 3.02% increase compared to the previous year [2] Full Year Estimates - For the full year, earnings are projected at $5.59 per share and revenue at $4.81 billion, indicating increases of 0.9% and 2.99% respectively from the prior year [3] Analyst Estimates and Confidence - Recent adjustments to analyst estimates for Zoom Communications are being monitored, as they often indicate changing business trends [4] - Positive revisions in estimates suggest analysts' confidence in the company's performance and profit potential [4] Zacks Rank and Valuation - Zoom Communications currently holds a Zacks Rank of 2 (Buy), with the consensus EPS estimate remaining unchanged over the last 30 days [6] - The company is trading at a Forward P/E ratio of 12.7, which is below the industry average of 27.5 [7] - Zoom's PEG ratio stands at 6.72, compared to the industry average PEG ratio of 2.23 [7] Industry Context - The Internet - Software industry, part of the Computer and Technology sector, has a Zacks Industry Rank of 79, placing it in the top 32% of over 250 industries [8] - Research indicates that the top 50% rated industries outperform the bottom half by a factor of 2 to 1 [8]

Group 1 - Zoom Communications, Inc. will release its financial results for Q2 of fiscal year 2026 on August 21, 2025, after market close [1] - A live Zoom Webinar for the financial results will be accessible at 2:00 pm PT / 5:00 pm ET through Zoom's investor relations website [1] - A replay of the event will be available approximately two hours after the live event concludes [1] Group 2 - Zoom's mission is to provide an AI-first work platform for human connection, emphasizing productivity through its open collaboration platform, Zoom Workplace [2] - Zoom's Business Services, including Zoom Contact Center, aim to strengthen customer relationships throughout the customer lifecycle [2] - Founded in 2011, Zoom is publicly traded on NASDAQ under the ticker ZM and is headquartered in San Jose, California [2]

In the latest close session, Zoom Communications (ZM) was down 1.17% at $74.51. This change lagged the S&P 500's daily loss of 0.3%. Elsewhere, the Dow saw a downswing of 0.46%, while the tech-heavy Nasdaq depreciated by 0.38%. The Internet - Software industry is part of the Computer and Technology sector. At present, this industry carries a Zacks Industry Rank of 72, placing it within the top 30% of over 250 industries. The strength of our individual industry groups is measured by the Zacks Industry Rank, ...

Core Insights - Zoom Communications, Inc. has been recognized as a "leader" in the UCaaS platform space with above-average customer feedback according to Forrester's Q3 2025 report [1][4] Platform Capabilities - Zoom excels in meeting experience, work persistence, and reliability, featuring an integrated AI companion and flexible video layout support [2] - The platform offers a 99.999% uptime SLA for its phone system and supports local backup for video meetings and messaging [2] - Zoom received the highest scores in criteria such as meeting experience, chat intelligence, collaboration organization, and security [2] Strategic Vision for the Future - Zoom aims to enhance collaboration through meaningful connections and is innovating to improve the meetings experience, including AI notetaking linked to work automation [3] - The company scored highest in vision, innovation, and supporting services within its strategic category [3] Customer Feedback - Customers report significant success using the entire Zoom suite, which has helped modernize their processes and collaboration styles [4]