When I look at $Zoom(ZM)$ today, I can’t help but reflect on how far the company has come since its pandemic-era highs. The stock, which once symbolized the stay-at-home economy, has spent the past few years battling investor skepticism about whether its growth could endure in a post-COVID world. But as of now, I find myself viewing Zoom with fresh interest. The company has transitioned from being a single-product video conferencing app into a broader enterprise communications platform, and that shift is finally starting to show results.
Zoom’s latest earnings report reinforced this impression for me. Revenue in Q2 fiscal 2026 grew modestly, but what caught my eye was the improvement in operating efficiency. The company has maintained solid profitability, with free cash flow generation that remains strong relative to its size. That tells me management is serious about balancing growth with discipline, which is something that many other software companies are still struggling to achieve in today’s higher-rate environment. Importantly, enterprise customers continue to be a bright spot, and Zoom is showing real traction with its bundled offerings, such as Zoom Phone and Zoom Contact Center, which diversify its revenue base beyond just meetings.
What excites me most about Zoom, however, is its positioning in the AI era. I’ve been following the company’s rollout of Zoom AI Companion closely, and I think this could be a real differentiator. Instead of charging extra, Zoom has decided to bundle AI features directly into its core product, betting that this will deepen customer engagement and reduce churn. Features like automated meeting summaries, smart email drafting, and real-time collaboration tools all align with how modern knowledge workers actually want to operate. To me, this makes Zoom less of a commodity product and more of an indispensable productivity suite.
Of course, there are still challenges. Competition from $Microsoft(MSFT)$ Teams, $Alphabet(GOOG)$ Google Meet, and even $Slack Technologies(WORK)$ remains intense. I often ask myself whether Zoom can win in environments where companies already pay for Microsoft 365. But I believe Zoom’s strength lies in its simplicity, reliability, and the way it continues to innovate at the product level. Many IT managers and employees still prefer Zoom’s user experience, and if the company can keep layering AI and workflow tools on top, that preference may translate into durable market share.
Valuation is another area I’ve considered carefully. Zoom no longer trades at the nosebleed multiples it commanded in 2020. Instead, the stock looks relatively reasonable compared to peers in the SaaS universe, especially given its profitability and strong balance sheet. With over $7 billion in cash and no debt, Zoom has optionality — it can invest aggressively in AI, pursue acquisitions, or return capital to shareholders if growth moderates. I personally see this financial flexibility as underappreciated by the market.
ZM Daily Chart
Looking ahead, my thesis is that Zoom is gradually evolving into a next-generation collaboration hub rather than just a video conferencing tool. This transformation won’t happen overnight, but I think the combination of enterprise adoption, AI integration, and a rock-solid balance sheet makes the stock compelling. While I don’t expect Zoom to repeat the hypergrowth of the pandemic years, I believe it has found a sustainable path forward. For me, this makes it a stock worth holding as the company continues its reinvention. As of now, I would like to see the stock price rise and hold above 78.50. I believe this will set up for an uptrend ahead.
@MillionaireTiger @Tiger_comments @Daily_Discussion @CaptainTiger @TigerSG
Disclaimer: This is a general analysis and not financial advice. Always conduct your own research before making any investment decisions.
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