Zoom (ZM): Evaluating Valuation as AI-First Platform Pivot and Analyst Interest Drive Fresh Attention

Zoom Communications (ZM) has been making headlines as it pivots to an AI-first work platform. The company is introducing solutions such as Zoom Meetings, Zoom Phone, and Workflow Automation. This strategic shift is drawing renewed interest from investors and analysts alike.

See our latest analysis for Zoom Communications.

News of Zoom’s expansion into AI-first solutions and the return of high-profile analyst coverage have sparked renewed optimism, and the momentum is showing up in the numbers. The stock’s share price return has climbed 13.1% over the last three months, and total shareholder return is up 14.1% in the past year. This represents a healthy bounce for a tech company that has weathered heavier pullbacks in recent years.

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With analyst price targets signaling room for upside, but recent ratings remaining cautious, the key question emerges: is Zoom’s current value an overlooked opportunity, or is the market already factoring in all its future gains?

Most Popular Narrative: 8.7% Undervalued

With the narrative's fair value estimate of $92.30 ahead of the last close at $84.28, current pricing implies a discount to the most widely followed valuation framework. The stage is set with analysts forecasting further upside, but the true catalyst lies beneath the surface in the company's evolving business mix and long-term earnings assumptions.

Rapid product innovation in AI-driven automation, integration with third-party enterprise platforms, and workflow enhancements (such as custom AI Companions and agentless outbound dialers) strengthens Zoom's differentiated value proposition in critical business processes. This enables pricing power and supports future margin expansion as value-added services scale without linear cost increases.

Read the complete narrative.

Want to know what gives this narrative its edge? The real story rests in bold estimates about future enterprise demand, recurring revenue, and a valuation multiple rarely seen outside sector leaders. Dive in and uncover the logic powering that target price.

Result: Fair Value of $92.30 (UNDERVALUED)

Have a read of the narrative in full and understand what's behind the forecasts.

However, intensified competition from larger cloud vendors or challenges in monetizing premium AI features could quickly reshape the outlook for Zoom’s long-term growth.

Find out about the key risks to this Zoom Communications narrative.

Build Your Own Zoom Communications Narrative

If you think the story looks different or want to dig into the numbers your way, it takes just a few minutes to build your own view, starting with Do it your way

A good starting point is our analysis highlighting 3 key rewards investors are optimistic about regarding Zoom Communications.

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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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