Zoom Communications Inc (NASDAQ:ZM) stock is surging today, last seen up 10.3% at $80.69, after the video conferencing name posted better-than-expected second-quarter results and lifted its full-year revenue and profit forecasts, citing AI utilization. No fewer than three analysts cut their price targets after the results, while two chimed in with price-target hikes.
Twelve of the 30 analysts in coverage rate ZM a "buy" or better, with Wedbush and Needham both reiterating their bullish ratings today, while 16 say a "hold," and two a "strong sell." The 12-month consensus price target of $90.30 is a 13% premium to current levels.
On the charts, ZM is now comfortably above all daily moving averages between the 20- and 320-day trendlines. Familiar pressure at the $80 level looks like it could keep gains in check, however. Year-to-date, the equity is down roughly 1.9%.
Options traders are targeting ZM's post-earnings pop, with 47,000 calls and 23,000 puts exchanged so far -- 11 times the average daily options volume already. The weekly 8/29 78-strike call is the most popular, with new positions being bought to open there.
