Zoom Communications (NASDAQ:ZM) Reaches New 1-Year High – Here’s Why

Zoom Communications, Inc. (NASDAQ:ZM) reached a new 52-week high on Tuesday . The stock traded as high as $95.83 and last traded at $95.46, with a volume of 10279969 shares changing hands. The stock had previously closed at $85.78.

Zoom Communications News Roundup

Here are the key news stories impacting Zoom Communications this week:

• Positive Sentiment: Baird estimates Zoom’s 2023 investment in Anthropic could now be worth $2 billion–$4 billion; the report framed the stake as a meaningful, previously underappreciated asset that lifted investor optimism. Zoom’s ‘hidden gem’ investment in Anthropic could be worth $2 billion to $4 billion, analysts say
• Positive Sentiment: Coverage in Barron’s amplified the same valuation view, reiterating the potential multi‑billion upside of Zoom’s Anthropic stake and driving further investor interest. Zoom Stock Is Soaring. Its Investment in Anthropic Is a ‘Hidden Gem.
• Positive Sentiment: Unusual options activity: traders bought ~33,095 call contracts (about +154% vs typical daily call volume), signaling speculative bullish bets that likely amplified upward price momentum intraday.
• Positive Sentiment: Market momentum: multiple outlets noted Zoom hit a 52‑week high, reflecting the combination of the Anthropic narrative and stronger near‑term fundamentals. Zoom Video stock hits 52-week high at 91.43 USD
• Neutral Sentiment: Analyst price‑target and narrative shifts: coverage notes analysts are revisiting Zoom’s story — some lifting targets on the Anthropic angle while others remain cautious, so follow subsequent analyst notes for conviction and magnitude of upgrades. Why The Story Behind Zoom Communications (ZM) Is Shifting With New Analyst Price Targets

Wall Street Analysts Forecast Growth

ZM has been the subject of several analyst reports. Wells Fargo & Company initiated coverage on Zoom Communications in a report on Tuesday, September 30th. They issued an “equal weight” rating and a $90.00 target price for the company. Jefferies Financial Group upped their price target on Zoom Communications from $100.00 to $105.00 and gave the stock a “buy” rating in a report on Tuesday, November 25th. Weiss Ratings reaffirmed a “buy (b-)” rating on shares of Zoom Communications in a research report on Monday, December 29th. Piper Sandler upped their price target on Zoom Communications from $85.00 to $91.00 and gave the company a “neutral” rating in a report on Monday, January 5th. Finally, Rosenblatt Securities reiterated a “buy” rating and set a $115.00 target price on shares of Zoom Communications in a research report on Tuesday, November 25th. One research analyst has rated the stock with a Strong Buy rating, thirteen have given a Buy rating, twelve have issued a Hold rating and one has assigned a Sell rating to the company. According to data from MarketBeat, the company presently has an average rating of “Moderate Buy” and an average target price of $93.82.

Zoom Communications Trading Up 11.3%

The company has a market capitalization of $28.27 billion, a price-to-earnings ratio of 18.57, a PEG ratio of 7.71 and a beta of 0.87. The company’s 50 day simple moving average is $85.54 and its 200-day simple moving average is $81.80.

Zoom Communications (NASDAQ:ZM) last announced its quarterly earnings data on Monday, November 24th. The company reported $1.52 earnings per share for the quarter, topping the consensus estimate of $1.44 by $0.08. Zoom Communications had a net margin of 33.17% and a return on equity of 12.20%. The business had revenue of $1.23 billion for the quarter, compared to analyst estimates of $1.21 billion. During the same period in the prior year, the firm posted $1.38 EPS. The company’s revenue was up 4.4% on a year-over-year basis. Zoom Communications has set its FY 2026 guidance at 5.950-5.970 EPS and its Q4 2026 guidance at 1.480-1.490 EPS. Sell-side analysts anticipate that Zoom Communications, Inc. will post 2.93 EPS for the current year.

Insider Buying and Selling

In related news, Director Santiago Subotovsky sold 2,475 shares of the business’s stock in a transaction that occurred on Monday, January 5th. The stock was sold at an average price of $86.01, for a total transaction of $212,874.75. Following the completion of the transaction, the director owned 145,219 shares in the company, valued at $12,490,286.19. The trade was a 1.68% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is available through this hyperlink. Also, insider Velchamy Sankarlingam sold 7,568 shares of the firm’s stock in a transaction that occurred on Monday, January 12th. The shares were sold at an average price of $86.55, for a total transaction of $655,010.40. Following the completion of the sale, the insider owned 136,182 shares in the company, valued at $11,786,552.10. The trade was a 5.26% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. In the last quarter, insiders have sold 317,745 shares of company stock worth $27,002,595. 10.78% of the stock is currently owned by insiders.

Hedge Funds Weigh In On Zoom Communications

A number of institutional investors and hedge funds have recently added to or reduced their stakes in ZM. Vanguard Group Inc. raised its position in shares of Zoom Communications by 4.0% during the third quarter. Vanguard Group Inc. now owns 25,937,601 shares of the company’s stock worth $2,139,852,000 after purchasing an additional 986,164 shares during the period. AQR Capital Management LLC raised its holdings in shares of Zoom Communications by 23.4% during the 3rd quarter. AQR Capital Management LLC now owns 8,477,057 shares of the company’s stock valued at $699,357,000 after purchasing an additional 1,607,253 shares in the last quarter. State Street Corp raised its stake in shares of Zoom Communications by 0.4% in the 3rd quarter. State Street Corp now owns 7,219,148 shares of the company’s stock valued at $595,580,000 after acquiring an additional 29,647 shares in the last quarter. Norges Bank bought a new position in Zoom Communications in the 2nd quarter worth $539,998,000. Finally, Geode Capital Management LLC lifted its position in shares of Zoom Communications by 0.5% during the 2nd quarter. Geode Capital Management LLC now owns 4,795,307 shares of the company’s stock worth $373,504,000 after purchasing an additional 23,910 shares during the last quarter. 66.54% of the stock is owned by institutional investors.

Zoom Communications Company Profile

Zoom Video Communications, Inc (commonly referred to as Zoom) is a provider of cloud-based communications and collaboration solutions. The company’s platform supports video conferencing, voice calling, instant messaging, webinars and large-scale virtual events, and meeting room systems, marketed to businesses, educational institutions, government organizations and individual users. Zoom’s product lineup includes Zoom Meetings, Zoom Phone, Zoom Rooms, Zoom Video Webinars and Zoom Chat, and the company offers integrations and extensions through a developer marketplace and third-party apps.

Founded in 2011 by Eric S.