Zoom: Undervalued And Underestimated - Even Without The Anthropic Stake

IWA Research2.6K FollowersFollow5ShareSavePlay(11min)CommentsSummaryZoom Communications is rated Buy, supported by an exceptional financial position and significant expansion potential, including a valuable Anthropic AI stake.ZM guides for FY27 revenue of $5.065–$5.075 billion and free cash flow of $1.7–$1.74 billion, reflecting resilience amid macro uncertainty.With zero debt and $7.82 billion in cash, ZM can pursue strategic investments, buybacks, and withstand market volatility, enhancing defensiveness.DCF-based valuation suggests upside in the core business compared to current levels, while factoring the Anthropic stake can lead to even more, though competitive risks remain.Alistair Berg/DigitalVision via Getty Images Strong Foundation Zoom Communications (ZM) is rated a Buy, with the company boasting an exceptional financial position that can offer both defensiveness against the current macro uncertainty that can push treasury yields higher, as well asThis article was written byIWA Research2.6K FollowersFollowI've been researching companies in-depth for over a decade, from commodities like oil, natural gas, gold and copper to tech like Google or Nokia and many emerging market stocks, which I believe could help me provide useful content for readers. After writing my own blog for about 3 years, I decided to switch to a value investing-focused YouTube channel, where I researched hundreds of different companies so far. I would say my favorite type of company to cover are metals and mining stocks, but I am comfortable with several other industries, such as consumer discretionary/staples, REITs and utilities.Analyst’s Disclosure: I/we have a beneficial long position in the shares of GOOG, MSFT either through stock ownership, options, or other derivatives. 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.