Zoom Bets on AI to Boost Productivity and Revenue Growth, But Ark's Projections Face Skepticism
-
Zoom Video Communications has built AI features to help remote workers be more productive. Ark Invest sees huge revenue growth potential, with a $1,500 price target for 2026.
-
Ark Analysts think Zoom's AI products could double its average revenue per user by 2026, contributing 50-100% on top of core services.
-
Zoom IQ and other AI features help summarize meetings, compose messages, and more to boost productivity.
-
Ark may be overly optimistic on user conversion rates, expecting 17% of users as paid in 2022 to 50% by 2026. Revenue expectations questioned.
-
Even with modest growth, Zoom stock trades at reasonable valuation. Upside makes it a buy, though 2,139% upside unlikely.