Zoom's Investment in AI Startup Anthropic Shows Huge Potential
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 3d ago
0mins
Source: Benzinga
- Investment Return Potential: Baird analysts estimate that Zoom's investment in Anthropic could yield a return of 78 times based on Anthropic's current valuation of $350 billion, making this potential windfall significant for Zoom's financial health.
- Strategic Investment Size: Although Zoom did not disclose the exact investment amount, SEC filings indicate a strategic investment of $51 million in that quarter, highlighting the company's accelerated positioning in the AI sector, which could lay the groundwork for future growth.
- Stock Price Analysis: Zoom shares are currently priced at $95.36, trading 11.9% above the 20-day and 18.1% above the 200-day moving averages, indicating a strong upward trend, with a 15.94% increase over the past 12 months reflecting market confidence in its future performance.
- Technical Signals: The golden cross formed in October, when the 50-day SMA crossed above the 200-day SMA, marks the beginning of a long-term uptrend; although the current RSI at 53.11 indicates neutrality, a breach below the $81.50 support level could signal a trend reversal, warranting close monitoring by investors.
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Analyst Views on ZM
Wall Street analysts forecast ZM stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for ZM is 99.33 USD with a low forecast of 85.00 USD and a high forecast of 115.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
20 Analyst Rating
12 Buy
7 Hold
1 Sell
Moderate Buy
Current: 96.220
Low
85.00
Averages
99.33
High
115.00
Current: 96.220
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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Zoom's Investment in Anthropic and Substantial Cash Reserves May Alter the Narrative
Investment Narrative Shift: Zoom Video Communications has evolved from being viewed primarily as a software utility to a deeper value holding company, particularly following its strategic investment in Anthropic, a leading AI firm, which positions it for growth in the AI sector.
Financial Positioning: As of January 2026, Zoom holds approximately $7.9 billion in cash, providing a strong financial cushion that mitigates risks associated with slower growth in its core business while allowing for strategic investments.
Market Valuation Insights: Analysts suggest that Zoom's stock is undervalued compared to its peers, with a market capitalization of around $27 billion, and the intrinsic value of its assets, including its stake in Anthropic, is not fully reflected in its current stock price.
Strategic Competitive Advantage: Zoom's partnership with Anthropic not only enhances its AI capabilities but also serves as a defensive strategy against competitors like Microsoft, allowing it to offer premium AI features without additional costs to its users, thereby increasing its market appeal.
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