ZM Should I Buy
-
$
0.000
0.000(0.000%)
At close0.000(0.000%)Aft-market
ET
Zoom Communications Inc (ZM) is a good buy for a beginner investor with a long-term focus and $50,000-$100,000 available for investment. The company's strong financial performance, significant potential from its Anthropic investment, and stabilization in its core business make it a compelling opportunity despite mixed analyst sentiment.
The MACD histogram is -1.183, below 0, and negatively contracting, indicating a bearish trend. RSI is neutral at 39.34, and moving averages are converging, suggesting indecision. Key support is at 72.419, and resistance is at 87.577. The stock is trading near its support level, which could present a buying opportunity.
Zoom's $51 million investment in Anthropic, now valued between $2 billion and $4 billion, with potential to exceed $5 billion if Anthropic goes public.
Strong Q4 financial performance with revenue up 5.31% YoY, net income up 83.24% YoY, and EPS up 91.38% YoY.
Stabilization in the online business with low churn and price increases expected to boost revenue.
Mixed analyst sentiment, with some firms maintaining bearish or neutral ratings due to concerns about growth and margin expansion.
Post-market price decline of -0.62%, indicating potential short-term weakness.
In Q4 2026, Zoom reported revenue of $1.247 billion (+5.31% YoY), net income of $674.08 million (+83.24% YoY), and EPS of $2.22 (+91.38% YoY). Gross margin increased to 76.29% (+0.74% YoY), showcasing strong profitability and growth trends.
Analyst ratings are mixed. Positive ratings include BTIG and Benchmark with price targets of $100 and $115, respectively, citing growth acceleration and strategic investments. However, KeyBanc and Bernstein remain bearish or neutral, citing margin concerns and competition from other SaaS companies.
