Zoom Communications expands reach, zooms in on AI opportunity

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Zoom Communications stock (NASDAQ:ZM) reached lofty heights during the pandemic, touching $500 in 2020, as “work from home” policies enabled big demand for video conferencing. The company, which went public in April 2019, pricing its shares at $36 and going as high as $66 in trading. recently rebranded. It changed its name from Zoom Video Communications to Zoom Communications, in a bid to emphasize that the platform is looking to enable all sorts of communications beyond just the video teleconferencing it is well-known for.

In a blog post, Zoom Communications CEO Eric Yuan noted, “What's in a name? Although you may know Zoom as, well, ‘Zoom,’ you may be surprised to learn that our official name is ‘Zoom Video Communications Inc.’ Until now, this accurately reflected the solutions we provided, as we were heavily focused on helping people around the world connect with one another using our video communications software. While that is still a priority, Zoom is now about so much more than video meetings. We are an AI-first company delivering modern, hybrid work solutions that enable you to collaborate seamlessly. And that’s why today, we are officially dropping “video” from our legal name. Starting today, we’ll be known simply as Zoom Communications Inc.”

For one, its AI Companion that is enabled in the Zoom Workplace platform serves as a digital assistant, helping participants summarize meeting tasks and prepare email responses. The company aims to use AI to enhance individual productivity and collaboration and enable customer-facing teams to better serve their customers. The stock, which has come down from its pandemic-influenced highs, closed at about $83 on December 5. Should investors consider buying it based on the potential for AI integration and other growth prospects?