Zoom Communications: Green Shoots Are Not Enough To Justify An Upgrade
Summary
- I maintain my hold rating on Zoom as core enterprise weakness and muted overall growth persist despite some positive developments.
- AI monetization and online business show incremental improvement, with strong AI Companion adoption and new paid AI offerings gaining traction.
- Zoom's contact center business is a bright spot, delivering high double-digit growth and competitive wins, but not yet enough to drive overall acceleration.
- Valuation remains stretched relative to peers, and without a turnaround in enterprise or growth acceleration, further upside appears limited.
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