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On Tuesday, Stifel reaffirmed a Hold rating on shares of Zoom Video Communications (NASDAQ:ZM), maintaining a price target of $65.00. The firm's commentary followed the announcement that Zoom has appointed Michelle Chang as the new Chief Financial Officer, with her tenure set to begin around October 7, 2024. The current CFO, Kelly Steckelberg, who has been in the role since 2017, will remain until the transition date, after which she will move to an advisory position within the company.
The transition comes after Steckelberg's decision to resign was initially shared during Zoom's second-quarter fiscal year 2025 earnings call. Chang brings over two decades of experience from Microsoft (NASDAQ:MSFT) to her new role at Zoom. Her most recent position was as CFO and Corporate Vice President for Microsoft's Commercial Sales & Partner Organization. Prior to that, Chang was the CFO for Microsoft's business units focusing on Modern Workplace & Security from 2017 to 2022.
Stifel noted the potential benefits of Chang's extensive experience with Microsoft as she takes on her new responsibilities at Zoom. The firm also highlighted the positive impact of Steckelberg's ongoing advisory role following her tenure as CFO, suggesting it could provide continuity and support for the company during the transition period.
The announcement of Chang's appointment comes at a time when Zoom is navigating a post-pandemic environment, where the demand for video conferencing tools remains a key factor in the company's performance. With Chang's background and Steckelberg's continued involvement, Zoom aims to maintain its position in the market and leverage their combined expertise for future growth.
In other recent news, Zoom Video Communications has made significant strides in its operations and management. The company recently appointed Michelle Chang, a former Microsoft executive, as its new Chief Financial Officer. Zoom's Q2 2025 earnings and revenue surpassed expectations with non-GAAP income from operations reaching $456 million and total revenue amounting to $1.16 billion. Consequently, the full-year revenue outlook has been revised to between $4.63 billion and $4.64 billion, and non-GAAP earnings per share are projected to be $5.29 to $5.32.
Zoom has also introduced new features and products aimed at improving compliance and security, including Zoom Compliance Manager Plus, Meeting Survivability, and Zoom Mesh for Meetings. In a strategic move, Zoom formed a partnership with Mitel to provide a hybrid cloud solution, integrating Zoom's advanced features with Mitel's platform. This collaboration is anticipated to be available in the first half of 2025.
Analyst firms Citi, Deutsche Bank, and Goldman Sachs maintained a neutral rating on Zoom, adjusting their price targets following these developments. Mike Fenger, Apple (NASDAQ:AAPL)'s Vice President, has also been appointed to contribute to the company's strategic direction.
Lastly, Zoom's AI Companion, part of the Zoom for Government platform, received authorization from The Federal Risk and Authorization Management Program (FedRAMP) Joint Authorization Board (JAB) as a moderate system.
InvestingPro Insights
Zoom Video Communications (NASDAQ:ZM) continues to show financial strength despite the challenges of a post-pandemic market. According to InvestingPro data, the company boasts a market capitalization of $21.21 billion and maintains impressive gross profit margins of 75.89% for the last twelve months as of Q2 2025. This aligns with one of the InvestingPro Tips, which highlights Zoom's "impressive gross profit margins."
The company's financial health is further underscored by another InvestingPro Tip, which notes that Zoom "holds more cash than debt on its balance sheet." This strong financial position could provide the incoming CFO, Michelle Chang, with significant flexibility as she takes the helm of Zoom's financial strategy.
Investors may also find comfort in the fact that 28 analysts have revised their earnings upwards for the upcoming period, according to InvestingPro Tips. This positive sentiment, coupled with Zoom's P/E ratio of 24.07, suggests that the market maintains confidence in the company's future performance, even as it navigates the transition in financial leadership.
For those seeking a more comprehensive analysis, InvestingPro offers additional tips and insights, with a total of 10 tips available for Zoom Video Communications.
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