Why Zoom Stock Zoomed More Than 11% Higher on Monday
Key Points
An analyst pointed out that the teleconferencing specialist has an asset that could explode in value.
This was purchased in mid-2023.
- 10 stocks we like better than Zoom Communications ›
Although stocks of companies linked to artificial intelligence (AI) have been something of a see-saw these past few months, investors are still clearly excited about the technology.
On Monday, an analyst noted that Zoom Video Communications (NASDAQ: ZM) could benefit materially from a recent AI investment. That was enough to ignite a rally in the teleconferencing company's stock, and it closed the day more than 11% higher.
Where to invest $1,000 right now? Our analyst team just revealed what they believe are the 10 best stocks to buy right now. Continue »
A prescient investment
In May 2023, Zoom disclosed that it had invested in and launched a strategic partnership with Anthropic, the privately held company best known for its Claude AI platform. At the time, Zoom did not provide any financial details of the arrangement.
Image source: Getty Images.
On Monday, Baird analyst William Power wrote a new research note on Zoom. According to reports, he wrote that by his estimation, the company invested $51 million in Anthropic in the deal. Placing that within the $350 billion valuation rumored for Anthropic, Zoom's stake could be worth $2 billion to $4 billion.
Although Anthropic management has not yet announced concrete plans for an initial public offering (IPO), it has made certain moves -- such as apparently hiring a law firm well known for advising companies through the IPO process -- that strongly indicate it will do so.
A monster return on investment
While it's wisest to invest in a stock primarily based on its potential for organic growth, Zoom's investment in Anthropic could indeed be compelling. An Anthropic IPO is increasingly likely, and if it happens, it'll surely be a monster issue given Claude's prominence and the fact that its developer is a pure-play AI company.
I think Power's new take is a smart way to look at Zoom stock these days.
Should you buy stock in Zoom Communications right now?
Before you buy stock in Zoom Communications, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Zoom Communications wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $464,439!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,150,455!*
Now, it’s worth noting Stock Advisor’s total average return is 949% — a market-crushing outperformance compared to 195% for the S&P 500. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors.
See the 10 stocks »
*Stock Advisor returns as of January 26, 2026.
Eric Volkman has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Zoom Communications. The Motley Fool has a disclosure policy.
Recommended Articles
