Zoom: Setup Remains Fundamentally Solid

Jay Capital1.42K FollowersFollow5ShareSavePlay(8min)CommentsSummaryZoom Video Communications remains a buy as core enterprise revenue stabilizes and accelerates, with large customers driving mix improvements.The CX segment demonstrates robust AI-led monetization, with high double-digit ARR growth and paid AI adoption in top deals, signaling product-market fit.The BrightHire acquisition strategically expands ZM’s workflow relevance, offering cross-sell potential and increased platform stickiness among enterprise clients.I project 15% upside, targeting ~$100 per share, as AI adoption and cross-selling drive revenue growth through FY28; risks include AI funnel efficacy and integration. Morsa Images/DigitalVision via Getty Images Summary Following my coverage on Zoom Video Communications (ZM) in Sept., in which I recommended a buy rating given that valuation has become more palatable and also that new growth vectors are scaling, thisThis article was written byJay Capital1.42K FollowersFollowI take a fundamentals-based approach to value investing.I disagree with the common misconception held by many investors that low multiple stocks must be cheap. I look for companies that offer the best long-term durability at the most affordable prices. Consequently, I have a propensity to be drawn to companies with steady long-term growth, no cyclicality, and a robust balance sheet.Nevertheless, investing in successful company is risky because one may end up paying too much (this is where valuation matters). I firmly believe this, yet there are situations where the development runway is so vast that price matters much less in the immediate future.Analyst’s Disclosure:I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article. Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.