Is Zoom Stock A Smart Buy In 2025? AI Upgrades, Financial Strength & Growth Potential

Zoom Communications Inc. (formerly Zoom Video Communications Inc.) is best known for its video conferencing software globally.

But did you know the company has rebranded and is now expanding into artificial intelligence (AI) and other communication tools?

In this blog, I’ll apply the Invest Diva Diamond Analysis (IDDA) framework to evaluate Zoom, so you can decide if Zoom stock is a smart investment.

IDDA Point 1 & 2: Capital & Intentional 

Before investing in Zoom, consider your financial goals and risk tolerance.

• Select your investments based on your own goals, timeline, and risk profile.
• Consider whether Zoom’s recent expansion into AI focus aligns with your values and strategy.

IDDA Point 3: Fundamentals

Founded in 201, Zoom became a household name during the COVID-19 pandemic as businesses, schools, and individuals relied on its video conferencing software.

In November 2024, Zoom rebranded to emphasize AI-driven communication solutions, reflecting its growth beyond video meetings. It now offers a suite of tools for businesses and individuals, including:

Zoom Meetings – High-quality video conferencing with features like screen sharing and virtual backgrounds.  

Zoom Team Chat – A messaging platform with file sharing and group chats.  

Zoom Phone – A cloud-based phone system with call routing and voicemail transcription.  

Zoom AI Companion – An AI-powered assistant designed to automate tasks and improve productivity.  

By expanding its offerings, Zoom aims to tap into the $100 billion collaboration software market.

Zoom’s Competitive Landscape

Zoom faces strong competition from tech giants, including:

Microsoft Teams – Integrated with Microsoft 365 and widely used by businesses.

Google Meet – Part of Google Workspace, offering seamless Gmail and Google Calendar integration.

Cisco Webex – A popular enterprise-level video conferencing solution.

Slack – Primarily a messaging platform with video call capabilities.

Despite the competition, Zoom is known for its user-friendly interface and reliability, which have helped it retain users even as workplaces return to in-person operations.

Zoom’s Financial Health – Is It Profitable?

Yes! Zoom is in a strong financial position:

$7.8 billion in cash and no debt – The company doesn’t owe money to lenders, making it financially stable.

Consistently profitable since 2019 – Unlike many tech companies, Zoom generates profits rather than burning cash.

Revenue growth – In Q4 FY2025, Zoom reported $1.184 billion in revenue, a 3.3% increase year over year.

Enterprise growth – Revenue from larger business clients grew 5.9% year over year, showing strong adoption among corporate users.

Raised full-year revenue forecast – Now projected between $4.65 billion and $4.66 billion, signaling confidence in future growth.

IDDA Point 4: Sentimental

Why Bulls Love Zoom (Optimists)

Strong Growth Potential – Zoom’s user base expanded during the pandemic, and many customers remain.  

Better Technology & Customer Satisfaction – Users rate Zoom’s video quality higher than competitors.  

Profitable & Efficient – Unlike other fast-growing tech firms, Zoom is already making money.  

Why Bears Are Skeptical (Pessimists)

Challenges Expanding Beyond Video Calls – Selling new products like Zoom Phone to big businesses takes time.  

Tough Competition – Microsoft, Google, and Cisco are major players with strong offerings.  

Slower Growth Post-Pandemic – The boom from COVID-19 is over, and revenue growth has slowed.  

IDDA Point 5: Technical Analysis

Weekly Chart Analysis  

Zoom’s stock had been in a downtrend since the pandemic.  In August 2024, it shifted to an uptrend after reporting earnings, reaching a high of around $92.  It then reversed and began declining, forming a double top pattern.  Currently, the stock is climbing again after its latest earnings beat.  

   The future Ichimoku cloud is bullish  

   Candlesticks are trading above the cloud, signaling potential upward momentum.  

However:  

   The Kijun line and Tenkan line are closely converging. If the Kijun line crosses above the Tenkan line, it would form a death cross, an early bearish signal which means the price might decline instead.

Daily Chart Analysis  

The future Ichimoku cloud is bearish, acting as a resistance and the candlesticks are below the cloud, indicating short-term downward momentum.  

The current market price is at the 38% Fibonacci retracement level. Given the **bearish signals on the daily chart** and the potential bearish signal on the weekly chart, prices may decline in the short term.

BL ideas

Current market price 77.78 (High risk)

73.92 (Medium risk – also a strong psychological level)

69.40 (Low risk)

PT ideas

88.89 

92.56

101.43 

Invest Diva Confidence Compass Questions:

Before entering a trade at any level, ask yourself:

1. If I buy at this price and the price drops another 50%, how would I feel?
   Would I panic, or would I buy more to average down?
   
2. If I don’t buy at this price and the stock rallies, will I regret missing the opportunity?

Investing is personal. Only enter trades that align with your individual goals, timeline, and risk tolerance.

IDDA Overall

Zoom has evolved beyond video conferencing and is now a leader in AI-powered communication tools. While competition is fierce, the company’s strong financials, innovation in AI, and growing enterprise revenue make it a stock to watch.  

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If you enjoyed my blog post about the ‘Is Zoom Stock a Smart Buy in 2025? AI Upgrades, Financial Strength & Growth Potential’, you’ll love my post on ‘Quantum Computing: Is This Stock The Next Big Investment Opportunity?’

Disclosure: I am not a financial advisor, and this is not financial advice. This information is for educational purposes only. This post about Zoom Stock  may contain affiliate links, meaning I get a commission if you decide to make a purchase through my links, at no cost to you. Please see the terms of service page for more information.