Preview: Zoom Video On 4: day winning streak ahead of report

Five9

26/02/2024 17:13

** Shares of Zoom Video Communications  ZM.O  up 1.1% at
$64.11 on Mon heading into its Q4 report due after the bell
    ** ZM, on course to rise for 4th straight session, still
down ~11% YTD vs Nasdaq's  .IXIC  ~7% advance
    ** Along with Microsoft's  MSFT.O  Teams and Cisco's
 CSCO.O  Webex, Zoom's platform became a household name during
pandemic-era lockdowns as businesses shifted to hybrid work
models
    ** Seeking to integrate artificial intelligence technology
into its products, Zoom introduced AI Companion during Q3,
allowing paid users to access features including meeting
summaries and catch-ups, as well as email and chat composed
prompts
    ** In Dec, call center software firm Five9  FIVN.O  rebuffed
another attempt by Zoom to bid for the co, two years after
FIVN's shareholders voted against Zoom's approx $15 bln buyout
offer
    ** For qtr ended in Jan, analysts expect Zoom to post rev of
$1.13 bln vs $1.12 bln a yr ago, and adj EPS of $1.15, down from
$1.22 in Q423, according to LSEG data
    ** Avg rating among 32 analysts is "hold" with 8 "buy" or
"strong buy", 22 "hold" and 2 "sell" recommendations
    ** Median PT of $73.50 unchanged over the past three months

 (Lance Tupper is a Reuters market analyst. The views expressed
are his own)
 ((lance.tupper@thomsonreuters.com
lance.tupper@tr.com 1-646-279-6380))