An analyst found a "hidden treasure" in Zoom. Its shares rose to a 3.5-year high

Shares of video calling service developer Zoom have jumped to their highest level since August 2022: it has found an investment in its portfolio that could potentially be worth billions. In 2023, Zoom invested in AI startup Anthropic, which is developing chatbot Claude. Zoom's stake in Anthropic could now be valued at up to $4 billion, representing an important asset, Baird calculated.

Following the publication of Baird's note, Zoom Communications' securities jumped 11.3% in mainstream trading on Jan. 26 to $95.5. During trading, the price climbed to $95.83, the highest level since mid-August 2022. In extended trading on Monday, the securities added another more than 2%.

Zoom invested in Anthropic, the developer of the Claude artificial intelligence model, through its venture capital fund in 2023. The company did not disclose the investment amount at the time. Given reports that Anthropic is working toward an IPO in 2026, Zoom's stake in the startup is becoming increasingly valuable, according to Baird Equity Research's director of technology William Power. His note is quoted by Barron's. The analyst reiterated an Outperform recommendation for the company's shares, equaling a Buy recommendation, and a $95 target price.

"While we (like the market as a whole) are primarily focused on the ability to incrementally accelerate revenue growth and realize AI opportunities, a quieter, hidden treasure may be its $51 million investment in Anthropic," Power wrote in Barron's outline.

In early January, The Wall Street Journal quoted sources as saying that Anthropic was looking to raise $10 billion in investment at a $350 billion valuation in a new private financing round. On that basis, Zoom's stake in Anthropic could be worth between $2 billion and $4 billion - depending on the degree of equity dilution, Baird estimated.

While Zoom has not officially disclosed that the entire $51 million strategic investment in the first quarter of 2023 was directed specifically to Anthropic, Baird believes it was.

"Zoom is literally invested in the success of Anthropic's Claude model," Power noted. - One of the big questions is how much further Anthropic's valuation can grow if it does go IPO."

The investments have already started to pay off: in the third quarter, Zoom reported a $406.1 million gain on strategic investments, and Baird estimates that most of that amount is the result of a revaluation of its stake in Anthropic.

In addition, the partnership with Anthropic gives Zoom an added advantage in developing and monetizing AI products to automate workflows - such as creating notes and summarizing meetings, the analyst emphasized. "We see potential for further integration of AI functions into Zoom's platform," Power noted.

Zoom shares, given Monday's surge, are now worth nearly 11% more than they were at the start of 2026. However, they remain about 80% below their all-time high reached in October 2020. Back then, Zoom's securities were worth more than $500 thanks to the Covid-19 pandemic, which forced many people to switch to remote work. After the pandemic ended, quotes fell below $50.

Now Wall Street is not expecting Zoom shares to soar: the consensus target price of 33 analysts tracking the company's shares, according to MarketWatch, is almost equal to their current value. Opinions on the securities are divided: 17 analysts advise to buy shares of the developer of video calling service, 14 - to hold, two - to sell.

This article was AI-translated and verified by a human editor