An analyst upgraded Zoom Video Communications to a "buy" rating. The analyst cited Zoom's investment in AI firm Anthropic as a key catalyst. This upgrade follows a recent stock price decline. Zoom had issued a weaker-than-expected profit forecast, which the analyst believes created a favorable entry point for investors.
The rating change followed Zoom's quarterly earnings report. Zoom revealed its Anthropic stake had surged in value. The company reported a $1.61 billion unrealized gain from the investment last quarter. This brought the total carrying value of its stake to $3.13 billion. The analyst noted a potential future Anthropic IPO could unlock significant value for Zoom shareholders.