An analyst from Baird stated that Zoom's investment in the AI startup Anthropic could be valued between $2 billion and $4 billion when accounting for equity dilution. Following this estimate, Zoom's stock price surged 11% on Monday.
In May 2023, Anthropic officially announced a partnership with Zoom and revealed that Zoom Ventures had made an investment in the company. While the specific investment amount was not disclosed at the time, a filing submitted by Zoom to the U.S. Securities and Exchange Commission indicated a $51 million expenditure for "strategic investments" during that quarter.
The Baird analyst speculated that this $51 million investment was allocated entirely, or at least the "vast majority," to Anthropic. The analyst pointed out that Anthropic's current valuation is $350 billion, suggesting that Zoom's investment could yield a return of approximately 78 times.
The analyst wrote in a research report released on Monday: "Although our focus, along with the market's, has primarily been on Zoom's gradual efforts to re-accelerate revenue growth and capitalize on AI opportunities, the company's $51 million investment in Anthropic in 2023 might be a quietly hidden gem."
During the early stages of the COVID-19 pandemic, the surge in remote work demand led professionals to widely adopt the Zoom video conferencing platform to stay connected with colleagues and loved ones, causing the company's popularity to skyrocket. However, as the pandemic receded and many workers returned to in-person offices, Zoom's stock price fell significantly from its historical peak.
Baird analysts believe that Zoom's investment in Anthropic could become a major highlight in the company's development.
The analyst also wrote: "Zoom's gains are directly tied to the success or failure of Anthropic's Claude, and as rumors of an Anthropic IPO intensify, the value of this investment may become even more prominent."
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