Zoom's stake in Anthropic rises in value to $3.13 billion
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Video conferencing giant Zoom projects adjusted earnings per share (EPS) of $1.46 to $1.48 for its third quarter, below the average analyst estimate of $1.50 compiled by LSEG, indicating that while the company continues to add AI features, competition in the video conferencing market is pressuring its profitability. Following the earnings release, Zoom’s shares fell 3.8% in after-hours trading. Zoom forecasts third-quarter revenue of $1.275 billion to $1.28 billion, matching the average analyst estimate of $1.28 billion. The company is currently rolling out AI Companion assistants, meeting reception tools, and its Zoom AI Services suite for enterprise clients to attract more users, though it still faces fierce competition from Microsoft Teams and Alphabet’s Google Meet. Zoom’s stake in Anthropic has risen in value to $3.13 billion. According to the company’s disclosures, this investment generated $1.61 billion in paper gains during the three months ending in July. Zoom first invested in Anthropic in early 2023, when the two parties established a partnership to integrate Anthropic’s Claude model into Zoom’s products. Additionally, Zoom revealed that it made an additional $301 million investment in Anthropic over the six months ending in July this year.
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