Zoom Communications (NASDAQ:ZM) stock has been in a strong bull run this month and is hovering at its highest level since June. It has rebounded by 30% from its lowest level in July and by 52% this year. This rally will face a major test as it releases its financial results.
Analysts are Boosting Zoom Communications Estimates Amid AI Boom
Top analysts following Zoom Communications have boosted their targets, arguing that it has multiple ways to monetize AI and its growth reacceleration. Top analysts from companies like Rosenblatt Securities, Bank of America, and Needham have placed a target of $130, up by 21.4% from the current level.
Therefore, the upcoming earnings reports will provide more insights on whether this growth is accelerating. The last results showed that its revenue rose by 5.5% in the March quarter, with the number of AI Companion users rising by 184%. It made $1.23 billion, with its enterprise figure rising to $755 million.
Benzinga data shows that its revenue is expected to come in at $1.27 billion, up by 4.25% from the same period last year. Its guidance for the third quarter is expected to be $1.28 billion.
