Zoom's AI Companion Free For Paid Users, While Competitors Charge $30-$50 Per Seat: Analyst Weighs In
Portfolio Pulse from Nabaparna Bhattacharya
Stifel analyst J. Parker Lane has reiterated a Hold rating on Zoom Video Communications, Inc. (ZM), lowering the price target to $70 from $75. The analyst noted Zoom's decision to include AI Companion at no additional cost for paid users, a feature competitors charge $30-$50 per seat for. Despite a slowdown in revenue growth, Zoom's AI Companion and the announcement of Zoom Docs, an AI-powered workspace, could enhance user experience and increase platform stickiness. Benchmark analyst Matthew Harrigan reiterated a Buy rating on Zoom, with an unchanged price target of $95.
October 04, 2023 | 6:21 pm
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NEUTRAL IMPACT
Zoom's new features are seen as replicating those of Microsoft Teams, potentially increasing competition between the two companies.
Zoom's new features, which are similar to those offered by Microsoft Teams, could increase competition between the two companies. However, it's unclear at this point how this will impact Microsoft's stock.
CONFIDENCE 70
IMPORTANCE 50
RELEVANCE 50
NEUTRAL IMPACT
Zoom's decision to include AI Companion for free for paid users and the announcement of Zoom Docs could enhance user experience and increase platform stickiness, potentially positively impacting the company's stock.
While the company is experiencing a slowdown in revenue growth, the introduction of new features and services could potentially attract more users and increase user retention, which could have a positive impact on the company's stock in the long term.
CONFIDENCE 80
IMPORTANCE 75
RELEVANCE 100