Zoom's Investment in Anthropic Could Be Worth Billions
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 1d ago
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Source: Newsfilter
- Investment Valuation: Analysts at Baird estimate that Zoom's investment in AI startup Anthropic could be worth between $2 billion and $4 billion, depending on dilution assumptions, indicating a potentially high return on investment.
- Strategic Investment Details: In May 2023, Zoom announced a partnership with Anthropic and revealed a $51 million investment, with analysts suggesting that the vast majority of this amount likely went to Anthropic.
- Market Reaction: Zoom's shares surged 11% on Monday, reflecting market optimism regarding the potential of its investment in Anthropic, particularly in the growing AI sector.
- Future Outlook: With rumors of Anthropic's IPO accelerating, Baird analysts noted that Zoom's investment could become a significant growth driver for the company, especially as it navigates revenue growth challenges post-pandemic.
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: 95.460
Low
85.00
Averages
99.33
High
115.00
Current: 95.460
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.
