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Stifel analyst Tom Roderick said Zoom Video Communications (ZM) "reached a significant milestone" in announcing its Zoom Phone offering has grown to 1M total seats sold slightly before the two-year anniversary of the product, which he said should be a reminder of "the powerful addressable opportunity in the enterprise for Zoom." In addition, Zoom is participating in its biggest offering since 2019 after which it will have nearly $3.5B in cash and marketable securities that will be beneficial for an aggressive infrastructure build-out, said Roderick. The analyst added, however, that level of cash alone "doesn't necessarily put potential targets like RingCentral or Twilio on the table without a huge component of stock in such a deal." Roderick keeps a Hold rating with a $450 price target on Zoom Video shares.

Morgan Stanley analyst Meta Marshall said she believes "the market has likely become a little too negative" on Zoom Video and its persistence post-pandemic given that the stock is off nearly 40% from its highs, particularly with COVID-19 "still in full swing." She estimates that Zoom had 75M-100M daily active users at its peak, which is a customer base, "if monetized," that presents multiples of the revenue base today given she estimates they are only monetizing less than 20M today. Also, the Phone stats released yesterday show "how quickly additional applications can be sold into the platform," argues Marshall. However, given what she still sees as elevated expectations versus churn potential in 2021, the analyst keeps an Equal Weight rating on Zoom shares with a $390 price target.