Zoom Communications (NASDAQ:ZM) Shares Up 11.2% – Still a Buy?

Zoom Communications, Inc. (NASDAQ:ZM) shares shot up 11.2% during trading on Monday . The company traded as high as $114.47 and last traded at $113.00. 3,867,460 shares changed hands during mid-day trading, a decline of 13% from the average session volume of 4,435,287 shares. The stock had previously closed at $101.59.

Key Headlines Impacting Zoom Communications

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

• Positive Sentiment: Zoom launched ZoomMate, a new “AI teammate” and agentic work surface that turns meetings and conversations into completed work by connecting with tools like Salesforce, Jira, Slack, and ServiceNow. Investors appear to be rewarding the company’s push into higher-value AI workflow software. Zoom launches ZoomMate: the first AI teammate built to turn conversations into completed work
• Positive Sentiment: Zoom’s recent quarterly results also helped sentiment: revenue and earnings beat expectations, margins improved, guidance was raised, and the company added $1.0 billion to its share repurchase authorization. That backdrop suggests stronger profitability and capital returns. Zoom shares climb as AI product launch adds to post-earnings momentum
• Positive Sentiment: Anthropic’s confidential IPO filing was viewed as a potential upside catalyst for Zoom because Zoom is an early investor in the AI startup, leading some investors to reassess the value of that stake. Zoom Stock Jumps 11%. Why the Anthropic IPO Is Good News for the Video Calling Company.
• Neutral Sentiment: Zoom also presented at the William Blair Growth Stock Conference, which likely kept the stock in focus but did not appear to be a major standalone catalyst. Zoom Communications, Inc. Presents at 46th Annual William Blair Growth Stock Conference Transcript
• Neutral Sentiment: Some commentary raised questions about the quality of Zoom’s earnings, suggesting the market may still be weighing whether the latest results are durable enough to justify the rally. There May Be Underlying Issues With The Quality Of Zoom Communications’ Earnings
• Negative Sentiment: Event-driven trading analysis around ZM indicates some investors may be viewing the move as trade-driven rather than a clean fundamental breakout, which could limit follow-through if catalysts fade. Evaluating Zoom’s (ZM) Event-Driven Trade

Wall Street Analyst Weigh In

A number of brokerages recently commented on ZM. KeyCorp upgraded shares of Zoom Communications from an “underweight” rating to a “sector weight” rating in a research note on Friday, May 22nd. HSBC upped their price target on shares of Zoom Communications from $107.00 to $133.00 and gave the company a “buy” rating in a research note on Tuesday. Wells Fargo & Company upped their price target on shares of Zoom Communications from $90.00 to $105.00 and gave the company an “equal weight” rating in a research note on Friday, May 22nd. Citizens Jmp reiterated a “market perform” rating on shares of Zoom Communications in a research note on Wednesday, May 20th. Finally, Rosenblatt Securities upped their price target on shares of Zoom Communications from $115.00 to $130.00 and gave the company a “buy” rating in a research note on Friday, May 22nd. Fifteen research analysts have rated the stock with a Buy rating and twelve have given a Hold rating to the company’s stock. Based on data from MarketBeat.com, Zoom Communications currently has an average rating of “Moderate Buy” and a consensus target price of $109.33.

Zoom Communications Trading Up 0.2%

The stock’s 50-day simple moving average is $92.06 and its 200-day simple moving average is $87.57. The stock has a market cap of $32.81 billion, a price-to-earnings ratio of 16.43, a price-to-earnings-growth ratio of 6.39 and a beta of 1.01.

Zoom Communications (NASDAQ:ZM) last announced its earnings results on Thursday, May 21st. The company reported $1.55 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $1.42 by $0.13. Zoom Communications had a net margin of 41.99% and a return on equity of 11.87%. The firm had revenue of $1.24 billion for the quarter, compared to analyst estimates of $1.22 billion. During the same quarter in the prior year, the business posted $1.43 EPS. The business’s revenue was up 5.5% compared to the same quarter last year. Zoom Communications has set its FY 2027 guidance at 5.960-6.000 EPS and its Q2 2027 guidance at 1.450-1.470 EPS. On average, equities research analysts forecast that Zoom Communications, Inc. will post 3.94 earnings per share for the current year.

Insider Activity

In other Zoom Communications news, CFO Michelle Chang sold 8,489 shares of the stock in a transaction that occurred on Friday, April 10th. The shares were sold at an average price of $81.32, for a total transaction of $690,325.48. Following the transaction, the chief financial officer owned 30,467 shares in the company, valued at $2,477,576.44. This represents a 21.79% decrease in their position. The sale was disclosed in a document filed with the SEC, which is available at this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, Director Santiago Subotovsky sold 5,274 shares of the stock in a transaction that occurred on Monday, May 4th. The stock was sold at an average price of $106.58, for a total transaction of $562,102.92. Following the transaction, the director owned 142,882 shares in the company, valued at approximately $15,228,363.56. The trade was a 3.56% decrease in their position. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last 90 days, insiders have sold 141,854 shares of company stock worth $12,173,374. Insiders own 10.78% of the company’s stock.

Institutional Inflows and Outflows

Institutional investors and hedge funds have recently made changes to their positions in the business. Advocate Investing Services LLC acquired a new stake in shares of Zoom Communications during the 4th quarter worth approximately $26,000. Strive Financial Group LLC acquired a new stake in shares of Zoom Communications during the 4th quarter worth approximately $27,000. Toth Financial Advisory Corp acquired a new stake in shares of Zoom Communications during the 4th quarter worth approximately $28,000. Rexford Capital Inc. boosted its position in shares of Zoom Communications by 45.7% during the 1st quarter. Rexford Capital Inc. now owns 389 shares of the company’s stock worth $31,000 after acquiring an additional 122 shares in the last quarter. Finally, Sound Income Strategies LLC boosted its position in shares of Zoom Communications by 94.8% during the 4th quarter. Sound Income Strategies LLC now owns 411 shares of the company’s stock worth $33,000 after acquiring an additional 200 shares in the last quarter. Institutional investors and hedge funds own 66.54% of the company’s stock.

About Zoom Communications

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.