How Investors Are Reacting To Zoom (ZM) Surpassing 10 Million Global Seats With AI-Driven Phone System

• Earlier this week, Zoom Communications announced that Zoom Phone, its AI-first cloud phone system, has surpassed 10 million seats globally and marked a significant milestone in the shift from legacy PBX to unified, AI-driven communications.
• This achievement reflects accelerating enterprise demand for integrated collaboration solutions and signals growing recognition of AI-powered business communication as a core driver for workplace productivity worldwide.
• We’ll now explore how Zoom Phone’s rapid global adoption could influence Zoom’s investment narrative and outlook for AI-led enterprise solutions.

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Zoom Communications Investment Narrative Recap

Zoom’s long-term story hinges on trust that enterprises will increasingly adopt AI-powered, unified communications as organizations modernize their workplace infrastructure. The recent Zoom Phone milestone demonstrates rapid customer uptake but, as with previous product expansions, it may have a limited near-term effect on the most important catalyst, meaningful revenue acceleration from paid AI features remains the key focus. The biggest risk continues to be persistent competitive pressure from integrated technology providers that could challenge Zoom’s pricing and upsell opportunities in the broader communications market.

Among recent announcements, the expanded partnership with NUSO stands out, as it directly builds on Zoom Phone’s global adoption. By combining global telephony, contact center licensing, and compliance-ready services, this collaboration helps Zoom offer enterprises streamlined, unified communications across regions, supporting the transition away from legacy solutions and potentially strengthening its appeal to larger enterprise customers with complex needs.

Yet, investors should also be aware that, despite impressive adoption metrics, competition from established tech giants threatens...

Read the full narrative on Zoom Communications (it's free!)

Zoom Communications' outlook projects $5.3 billion in revenue and $1.2 billion in earnings by 2028. This implies a 3.4% annual revenue growth rate and essentially flat earnings compared to current earnings of $1.2 billion.

Uncover how Zoom Communications' forecasts yield a $92.30 fair value, a 12% upside to its current price.

Exploring Other Perspectives

Simply Wall St Community members provided nine fair value estimates for Zoom, from US$72.97 to US$116.36 per share. With intensifying competition from integrated platforms still front of mind, you can explore how different investors weigh these risks and growth opportunities.

Explore 9 other fair value estimates on Zoom Communications - why the stock might be worth 12% less than the current price!

Build Your Own Zoom Communications Narrative

Disagree with existing narratives? Create your own in under 3 minutes - extraordinary investment returns rarely come from following the herd.

• A great starting point for your Zoom Communications research is our analysis highlighting 3 key rewards that could impact your investment decision.
• Our free Zoom Communications research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate Zoom Communications' overall financial health at a glance.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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