In partnership with

Today’s Headline

Is There An Opportunity With Zoom Communications Inc.'s (NASDAQ:ZM) 36% Undervaluation?

Hey friends,

Today, I want to shine a spotlight on a stock that most of us know pretty well — Zoom Communications (ticker symbol: ZM). It became a household name during the pandemic. Everyone from school kids to corporate executives used it to stay connected. But now that the world has gone hybrid or fully back to the office, Zoom's stock has fallen out of the spotlight.

But here’s the interesting part: Zoom might be undervalued by as much as 36%.

If that’s true, then we could be looking at one of the most overlooked opportunities in tech right now.

Let’s dive into why some investors believe Zoom is trading way below its real value — and what that could mean for us.

💡 The Smartest Investors Know: Attention = Currency
Marketing isn’t just for marketers anymore. If you want to grow your wealth, scale your side hustle, or build a personal brand that attracts high-paying clients and lucrative investment opportunities — you need to know what actually works right now.
The Marketing Millennials newsletter is where top-performing creators, founders, and investors go to learn unfiltered, high-converting strategies that dominate LinkedIn and beyond.
👉 Click here to subscribe (before everyone else does)

Marketing ideas for marketers who hate boring

The best marketing ideas come from marketers who live it.

That’s what this newsletter delivers.

The Marketing Millennials is a look inside what’s working right now for other marketers. No theory. No fluff. Just real insights and ideas you can actually use—from marketers who’ve been there, done that, and are sharing the playbook.

Every newsletter is written by Daniel Murray, a marketer obsessed with what goes into great marketing. Expect fresh takes, hot topics, and the kind of stuff you’ll want to steal for your next campaign.

Because marketing shouldn’t feel like guesswork. And you shouldn’t have to dig for the good stuff.

Sign Up Free

From Pandemic Darling to Wall Street Loner

Zoom’s rise was explosive. The stock soared during the COVID-19 lockdowns, as demand for video conferencing skyrocketed.

But after the world reopened, Zoom’s growth slowed, and investors started looking elsewhere. That caused the stock to drop sharply from its all-time highs.

Some people even wrote it off entirely — calling it a "pandemic stock."

But what if that view is too short-sighted?

Zoom Is Still Making Big Moves

Even if Zoom isn't growing as fast as it did in 2020, the company hasn’t stopped building.

It’s expanded into new areas like customer engagement, AI-powered productivity tools, and Zoom Phone — which is gaining traction.

These aren’t just side projects. They could become major revenue drivers in the next few years.

So while the headlines might say Zoom is slowing down, under the hood, it's actually evolving.

The 36% Undervaluation Explained

Here’s where things get juicy.

Analysts using discounted cash flow (DCF) models suggest that Zoom’s fair value could be about 36% higher than where it’s currently trading.

That means if the market corrects itself, and Zoom hits that fair value, investors could see a nice upside.

It’s like buying a $1 bill for $0.64 — but only if you believe in Zoom’s future earnings.

Zoom’s Financials Are Strong

Zoom has something many tech companies don’t: a rock-solid balance sheet.

They have zero debt and billions in cash.

That gives them a lot of flexibility — to innovate, acquire, or return value to shareholders.

And that financial strength becomes even more important in uncertain economic times.

Let’s Talk About Risks

Of course, no investment is risk-free.

Zoom faces tough competition from Microsoft Teams, Google Meet, and other players in the unified communication space.

And let’s be honest — people are tired of virtual meetings. That’s a real sentiment to watch.

But this is where valuation comes into play. If Zoom is already priced for the worst-case scenario, then the upside could outweigh the downside.

Why I’m Watching Zoom Closely

As someone who invests for the long term, I don’t mind some short-term noise if the fundamentals are strong.

Zoom’s brand is strong, its tech is still top-tier, and it's expanding into smart new areas like AI and voice services.

Plus, with no debt and solid free cash flow, it has the tools to weather storms.

If the stock really is 36% undervalued, then Zoom might just be a classic value play hiding in a growth stock’s clothing.

Three Things I’m Doing Right Now

1. Digging deeper into Zoom’s earnings reports – I want to see how much growth is coming from their new product lines.

2. Watching for analyst upgrades – If more institutions jump back in, it could signal momentum.

3. Looking for a good entry point – I’m not rushing in, but I’m keeping an eye out for dips.

Final Takeaways

Here’s what I’ll leave you with:

Zoom may not be the star it once was, but stars don’t shine 24/7. Sometimes, they recharge.

With a strong balance sheet, a 36% discount to fair value, and new tools in its arsenal, Zoom is quietly setting itself up for a second act.

It might not be flashy, but sometimes, the best investments are the ones that everyone else is sleeping on.

As always, do your own homework — but don’t sleep on ZM.

Stay curious, stay patient, and I’ll see you in the next issue.

Your friend in finance

[Live Life Grow Wealth]

DISCLAIMER

I make no representations, warranties, or guarantees, whether expressed or implied, that the content provided is accurate, complete, or up-to-date. Past performance is not indicative nor a guarantee of future returns.

I am an individual content creator and not regulated or licensed by the Monetary Authority of Singapore (MAS) as I do not provide investment services.

All forms of investments carry risks, including the risk of losing your entire invested amount. Such activities may not be suitable for everyone. You are strongly encouraged to seek advice from a professional financial advisor if you have any doubts or concerns.