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    Zoom Communications (ZM) Shares Just Moved, So What Is Going On?

    Simply Wall St·10/22/2026 10:32:11
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    Zoom Communications (ZM) has put AI front and center with its new Unified Context Layer and a wave of AI-powered tools aimed at turning meetings, calls, and chats into concrete work output.

    Recent trading reflects that story catching attention. The share price is up 9.39% over the past 30 days and 18.23% over 90 days, contributing to a 21.25% 1-year total shareholder return, although the 5-year total shareholder return remains down 63.55%, so longer term momentum is still recovering.

    Scan how other AI-first platforms are setting up for their next move by comparing Zoom Communications with a curated group of 38 profitable AI stocks that aren't just burning cash that pair AI stories with real earnings power.

    So is Zoom Communications’ latest jump a clean read on improving fundamentals and AI traction, or mostly a sentiment swing after fresh Zoomtopia headlines? And how does the current valuation stack up against that backdrop?

    Most Popular Narrative: 16% Undervalued

    Against a fair value estimate of $118.24 from the most followed narrative, Zoom Communications last closed at $99.44. The current quote sits at a clear discount while the AI and Enterprise story remains the key swing factor.

    Strong and accelerating adoption of AI powered features across Zoom Communications, including AI Companion, custom AI Companion and ZoomMate, with paid monthly active users of Workplace AI features up 125% year over year and AI Companion paid MAUs up 184% year over year, supports a view that AI usage is now translating into both indirect monetisation through lower churn and upsell and direct monetisation through paid SKUs. This can lift revenue growth and support high gross margins near the 80% long term target.

    See why 74 investors see Zoom Communications as 16% undervalued.

    Result: Fair Value of $118.24 (UNDERVALUED)

    Still, this Zoom Communications narrative could wobble if larger bundled platforms squeeze pricing power or if heavier AI compute costs erode the currently strong margin profile.

    Find out about the key risks to this Zoom Communications narrative.

    Next Steps

    Mixed signals on Zoom Communications so far. If you want to move quickly and ground your own view in the facts, consider the 3 key rewards and 2 important warning signs to weigh the potential risks and rewards.

    Looking for more investment ideas beyond Zoom Communications?

    If you only focus on Zoom Communications, you could miss other setups where quality and price still line up in your favour across very different parts of the market.