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Zoom stock hits 52-week high at $86.24 amid market rally

Published 11/12/2024, 11:30 PM
Updated 11/12/2024, 11:32 PM
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Zoom Video Communications Inc. (NASDAQ:ZM) stock soared to a 52-week high of $86.24, reflecting a robust rally that has captivated investors. The surge represents a significant turnaround for the company, which has seen its stock price climb by 39.57% over the past year. This impressive performance underscores the market's renewed confidence in Zoom as it continues to expand its offerings and capitalize on the demand for remote communication solutions. The 52-week high milestone is a testament to the company's resilience and adaptability in a rapidly evolving digital landscape.

In other recent news, Five9 (NASDAQ:FIVN) has been targeted by Legion Partners Asset Management for board changes and cost reductions. This move follows a previous stake acquisition by Anson Funds Management, which suggested a potential sale of the company. Five9, with over 3,000 clients, reported revenues of $910.5 million in 2023. The push for changes within Five9's operations and governance comes after a failed acquisition attempt by Zoom Video Communications.

In related news, Zoom Video Communications maintained its Hold rating post-investor day, according to a review by an analyst at Needham. The company, which recently introduced its new CFO, Michelle Chang, and updated its long-term financial targets, reported Q2 2025 earnings and revenue that exceeded expectations. Non-GAAP income from operations reached $456 million, and total revenue amounted to $1.16 billion.

Zoom's success in securing multiple wins for its Zoom Contact Center against established competitors has led to a positive outlook from Barclays (LON:BARC) and a reiteration of its Equalweight rating. Zoom also maintained an Overweight rating from Piper Sandler, which highlighted the company's growth from extended contract durations and expansion through long-term bundled deals.

Finally, Benchmark upgraded the price target for Zoom Video, lifting it to $85.00 from the previous $83.00 while maintaining a Buy rating. This adjustment follows Zoom's presentation of revised long-term sustainable margin assessments and the introduction of new AI-related products.

InvestingPro Insights

Zoom's recent stock performance aligns with several key metrics and insights from InvestingPro. The company's stock has shown remarkable strength, with InvestingPro data revealing a 54.7% price return over the last three months and a 38.1% return over the past six months. This upward trajectory is further supported by InvestingPro Tips, which note that Zoom is "trading near its 52-week high" and has demonstrated "strong returns over the last month and three months."

The company's financial health appears robust, with an InvestingPro Tip highlighting that Zoom "holds more cash than debt on its balance sheet." This strong financial position is complemented by "impressive gross profit margins," which stand at 75.89% for the last twelve months as of Q2 2025, according to InvestingPro Data.

For investors seeking more comprehensive analysis, InvestingPro offers 13 additional tips for Zoom, providing a deeper understanding of the company's market position and potential.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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