Sheryar Siddiq
1 min read
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On May 22, Benchmark analyst Matthew Harrigan reiterated his Buy rating for Zoom Communications Inc. (NASDAQ:ZM) and raised his price target for the company's shares from $97 to $102.
The change follows Zoom increasing its constant currency revenue forecast for the full year by $15 million and marginally exceeding its first-quarter fiscal year 2026 guidance.
Photo by Chris Montgomery on Unsplash
Although Zoom Communications Inc. (NASDAQ:ZM) acknowledged a slight decline in the previous forecast for Enterprise sales, its performance shows a modest upward revision in estimates, with revenue exceeding expectations by $8 million while also considering a $10–15 million benefit from higher rates for monthly Pro customers. The updated guidance also takes into account Zoom's flexibility in modifying its pricing strategy to increase the profitability of its Online segment.
Zoom CEO Eric Yuan also used a very lifelike avatar in his opening remarks during the earnings call to highlight the company's dedication to security and privacy. According to Benchmark, Zoom's tech capabilities will eventually advance to the point where the CEO's avatar is almost identical to the real Eric Yuan in less than a year, highlighting the necessity of customer-specific approval levels for AI integration.
While we acknowledge the potential of ZM to grow, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than ZM and that has 100x upside potential, check out our report about the cheapest AI stock.
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Disclosure: None.
