TLDR
- Zoom (ZM) closed down 5.7% at $79.24, underperforming the S&P 500 which fell just 0.11%
- The drop was driven by investor fears that AI agents from Anthropic and OpenAI could disrupt enterprise software
- ZM is down 6.8% year-to-date and trades 19.3% below its 52-week high of $96.22
- Upcoming earnings estimate projects EPS of $1.41, a 1.4% drop year-over-year, with revenue forecast at $1.22 billion
- ZM trades at a forward P/E of 14.32, a discount to the industry average of 17.88
Get live prices, charts, and KO Scores from KnockoutStocks.com, the data-driven platform ranking every stock by quality and breakout potential.
Zoom (ZM) had a rough Thursday, closing at $79.24 after dropping 5.7% in a single session. The broader market told a different story — the Nasdaq gained 0.35% and the S&P 500 fell just 0.11%.
The sell-off wasn’t company-specific at first glance. Enterprise software broadly took a hit as investors grew nervous about the rise of managed AI agents from the likes of Anthropic and OpenAI. The worry is straightforward: if AI agents can handle tasks that enterprise software currently manages, the whole sector faces a repricing.
Zoom was caught in that wave. On top of the sector pressure, the company carries its own baggage — competition concerns and questions about long-term growth in a post-pandemic world haven’t gone away.
That said, the past month tells a more positive story. ZM gained 12.13% over the last 30 days, easily beating the Computer and Technology sector’s 0.88% gain and the S&P 500’s 0.51% rise. Thursday’s drop dented that run but didn’t erase it.
For context, Zoom doesn’t move like this often. Over the past year, it has only made five moves greater than 5%. So when it does swing hard, the market is usually saying something.
What the Numbers Say
The last time ZM moved this sharply was five months ago — in the opposite direction. It jumped 13.5% after reporting Q3 earnings that beat on both the top and bottom lines. Revenue came in at $1.23 billion versus the $1.21 billion consensus, up 4.4% year-over-year. Adjusted EPS hit $1.52, ahead of the $1.44 estimate. The company also raised its full-year adjusted EPS guidance to a midpoint of $5.96.
That kind of beat gave investors something to hold onto. Thursday’s move suggests some of that confidence is being tested again.
Looking ahead, analysts expect EPS of $1.41 for the upcoming quarter — a 1.4% decline from the same period last year. Revenue is forecast at $1.22 billion, up 4.16% year-over-year. Full-year estimates call for $5.87 in earnings per share and $5.06 billion in revenue.
On valuation, ZM looks relatively cheap. Its forward P/E sits at 14.32, well below the industry average of 17.88. The PEG ratio, however, tells a more cautious story at 3.23, compared to an industry average of 1.0 — suggesting the market isn’t convinced earnings growth justifies the multiple.
Where the Stock Stands
ZM is currently 6.8% lower than where it started the year. At $79.24, it sits 19.3% below its 52-week high of $96.22, hit back in January 2026.
Zoom currently holds a Zacks Rank of #3 (Hold), with no changes to consensus EPS estimates over the past 30 days.
The Internet – Software industry ranks 95th out of 250-plus industries tracked by Zacks, placing it in the top 39%.
🚨 Our April Stock Picks Are Live!
A new month means new opportunities. Our analysts have just released their top stock picks for April, highlighting companies with strong momentum that rank highly on our KO Score algorithm. We’re also now sharing trade ideas for both long-term and short-term investors, giving you more ways to spot potential opportunities in the market.
Sign up to Knockout Stocks today and get 50% off to unlock the full list and see which stocks made the cut.
Use coupon code Special50 for your exclusive discount!
