Zoom gains as Spruce Point calls for buyback and strategy review

ReutersApr 24, 2026 1:15 PM

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Video-conferencing platform Zoom Communications' ZM.O shares rise 2.3% to $92.09 premarket

Spruce Point Capital Management releases "Strong Buy" research opinion on ZM; has also sent a letter to ZM board recommending actions to create shareholder value

Believes skepticism about company's market opportunity and the recent pressure on software stocks has "unfairly, driven Zoom’s valuation to egregiously low levels," particularly considering firm's stake in Anthropic

Recommends a $4 billion modified Dutch auction tender, where company can buy back shares at the lowest price from proposals submitted to it by sellers

Calls on ZM to improve capital allocation, reduce operating expenses, fix international business among other actions

Average rating of 31 analysts is "buy;" their median PT is $95 - data compiled by LSEG

Up to last close, stock has risen 4.3% so far this year

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