Zoom gains as Spruce Point calls for buyback and strategy review

Zoom Communications

24/04/2026 14:15

** Video-conferencing platform Zoom Communications' ZM.O shares rise 2.3% to $92.09 premarket

** Spruce Point Capital Management releases "Strong Buy" research opinion on ZM; has also sent a letter to ZM board recommending actions to create shareholder value

** Believes skepticism about company's market opportunity and the recent pressure on software stocks has "unfairly, driven Zoom’s valuation to egregiously low levels," particularly considering firm's stake in Anthropic

** Recommends a $4 billion modified Dutch auction tender, where company can buy back shares at the lowest price from proposals submitted to it by sellers

** Calls on ZM to improve capital allocation, reduce operating expenses, fix international business among other actions

** Average rating of 31 analysts is "buy;" their median PT is $95 - data compiled by LSEG

** Up to last close, stock has risen 4.3% so far this year

 (Reporting by Anhata Rooprai in Bengaluru)

 ((Anhata.Rooprai@thomsonreuters.com))