Could a Recession Occur in 2026?
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Dec 12 2025
0mins
Should l Buy ZM?
Source: NASDAQ.COM
Podcast Overview: Episode #468 of the Zacks Market Edge Podcast features host Tracey Ryniec and guest John Blank discussing the potential for a U.S. recession and stock picks for 2026, including insights on the AI Revolution.
Stock Recommendations: The podcast highlights five stocks for 2026: NVIDIA (strong growth potential), Newmont (largest gold mining company with significant earnings growth), Atlassian (global software company with a solid cash position), Genpact (AI and data specialist with value potential), and Zoom (expanding into AI with a strong market presence).
NVIDIA Insights: NVIDIA is noted for its impressive earnings growth projections and favorable PEG ratio, despite a high forward P/E ratio, making it a strong buy according to Zacks.
Market Trends: The discussion emphasizes the importance of evaluating stocks based on growth and value metrics, particularly in the context of the ongoing AI trend and economic conditions as they approach 2026.
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Analyst Views on ZM
Wall Street analysts forecast ZM stock price to rise
20 Analyst Rating
12 Buy
7 Hold
1 Sell
Moderate Buy
Current: 92.240
Low
85.00
Averages
99.33
High
115.00
Current: 92.240
Low
85.00
Averages
99.33
High
115.00
About ZM
Zoom Communications, Inc. provides an artificial intelligence (AI) work platform for human connection. Zoom Workplace, the Company’s AI-powered, open collaboration platform built for modern work, enables us to streamline communications, increase employee engagement, optimize in-person time, improve productivity, and offer customer choice with third-party apps and integrations. Zoom Workplace, powered by Zoom AI Companion, includes collaboration solutions like meetings, team chat, phone, scheduler, whiteboard, spaces, Workvivo, and more. Its communication products include Zoom Meetings, Zoom Phone, Zoom Team Chat, Zoom scheduler, and Zoom mail and calendar. Its productivity products include Zoom Docs, Zoom Whiteboard, Zoom Clips, and Zoom Tasks. Its space products include Zoom Rooms, Zoom Workspace Reservation, and Zoom Visitor Management. It serves various industries, including education, financial services, government, retail, manufacturing and healthcare.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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- Stagnant Revenue: The company's revenue for 2023 was $2.6 billion, projected to fall by 1% to $2.5 billion in 2024, with a 3% year-over-year decline in Q1 2025, indicating a lack of growth momentum in a highly competitive market.
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- Stagnant Revenue: The company's revenue for 2023 was $2.6 billion, projected to fall by 1% to $2.5 billion in 2024, with a 3% year-over-year decline in Q1 2025, indicating a lack of growth momentum in a highly competitive market.
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- Palantir's Positive Outlook: Palantir's fourth-quarter results exceeded expectations, and the company provided first-quarter sales guidance above estimates, along with FY26 guidance that also surpassed analyst forecasts, highlighting its future growth potential.
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See More
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- Growth Drivers: Strength in Zoom Contact Center and sustained mid-teens growth in Zoom Phone, along with emerging monetization from Voice AI, are driving improving growth durability, which the analyst believes is not yet fully reflected in market expectations.
- Strong Financial Position: Zoom holds approximately $8 billion in net cash and is expected to add another $3.9 billion over the next two years, providing ample financial resources for growth-accretive M&A in adjacent areas like Voice AI and Contact Center software.
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See More
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- Benchmark Initiates Cava Rating: Benchmark initiates coverage of CAVA Group with a Buy rating and an $80 price target, reflecting its leadership position in the rapidly emerging Mediterranean dining market, which is expected to attract more investor interest in this burgeoning sector.
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See More
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- Significant Customer Growth: Figma reported 1,262 customers with annual revenues exceeding $100,000 as of September 30, marking a year-over-year increase of 385, indicating a sustained market penetration in the design sector that enhances long-term growth potential.
- Strong Financial Performance: The latest quarter saw Figma's revenue rise 38% year-over-year to $274.2 million, with an annual revenue run rate surpassing $1 billion for the first time; despite an operating loss of $1.1 billion primarily due to one-time stock compensation, this reflects the company's strategic focus on heavy reinvestment.
- High Market Valuation: Currently trading at nearly 70 times projected earnings, Figma's valuation remains elevated compared to Nvidia's 25 and Amazon's 29, suggesting that despite an 80% drop from its peak, careful evaluation of future profitability and competitive positioning is essential.
- Strong Product Competitiveness: Figma's platform effectively bridges designers and developers, with 30% of high-value customers using its AI tool Figma Make weekly, underscoring the product's significance in the industry and customer retention, which may further enhance market share in the future.
See More
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- Market Shift Warning: Matthew Tuttle, CEO of Tuttle Capital Management, warns that investors may be underestimating the shift away from U.S. assets, particularly large tech firms, as Europe and other regions reduce dependence on American platforms and policies.
- Digital Sovereignty Push: Tuttle highlights a significant move towards digital sovereignty in Europe, ensuring that core systems and communications cannot be easily disabled if relations with the U.S. deteriorate, which will impact future technology procurement and investment decisions.
- Beneficiary Companies: He identifies several European companies, including OVH Groupe, IONOS, Orange, Deutsche Telekom, and Capgemini, that could benefit from this shift, indicating a market tilt towards local technology solutions.
- Strained U.S.-EU Relations: Relations between the U.S. and EU have further strained after President Trump threatened tariffs on the EU for not supporting his Greenland acquisition bid, which may intensify scrutiny on U.S. tech companies and affect investor confidence.
See More
