On December 31, 2024, BlackRock, Inc. (Trades, Portfolio) made a significant move by acquiring an additional 2,085,217 shares of Zoom Communications Inc (ZM, Financial). This transaction was executed at a trade price of $81.61 per share, bringing BlackRock's total holdings in Zoom to 17,464,094 shares. Despite this substantial addition, the transaction did not alter the portfolio weight, maintaining a 0% change. However, Zoom now constitutes 6.70% of BlackRock's holdings, reflecting the firm's strategic interest in the company.
BlackRock, Inc. (Trades, Portfolio): A Profile of the Investment Giant
Headquartered at 50 Hudson Yards, New York, NY, BlackRock, Inc. (Trades, Portfolio) is a leading global investment firm. While the firm's specific investment philosophy is not detailed, its top holdings include major technology companies such as Apple Inc (AAPL, Financial), Amazon.com Inc (AMZN, Financial), Meta Platforms Inc (META, Financial), Microsoft Corp (MSFT, Financial), and NVIDIA Corp (NVDA, Financial). With an equity value of $4,761.16 trillion, BlackRock's investment focus is primarily on the technology and financial services sectors.
Zoom Communications Inc.: A Leader in Cloud-Native Communications
Zoom Communications Inc, headquartered in San Jose, California, offers a cloud-native platform that facilitates video, voice, chat, and content sharing. With a market capitalization of $26.41 billion, Zoom has established itself as a key player in the software industry. As of the latest data, Zoom's stock is priced at $86.18, with a price-to-earnings ratio of 28.73. The company's [GF-Score](https://www.gurufocus.com/term/gf-score/ZM) of 87/100 indicates a good potential for outperformance.
Financial Metrics and Valuation of Zoom
Zoom is currently considered modestly overvalued with a GF Value of $72.30, resulting in a price to GF Value ratio of 1.19. The stock has experienced a year-to-date price change of 5.64%. Zoom's financial strength is underscored by a [Balance Sheet Rank](https://www.gurufocus.com/term/rank-balancesheet/ZM) of 9/10 and a [Profitability Rank](https://www.gurufocus.com/term/rank-profitability/ZM) of 7/10. The company's revenue growth over the past three years stands at 18.20%, while its [Operating Margin](https://www.gurufocus.com/term/operating-margin/ZM) growth is an impressive 41.70%.
Performance and Growth Indicators
Zoom's [Growth Rank](https://www.gurufocus.com/term/rank-growth/ZM) is 8/10, reflecting its robust growth trajectory. The company boasts a [Cash to Debt](https://www.gurufocus.com/term/interest-coverage/ZM) ratio of 115.69, indicating strong financial health. Additionally, Zoom's return on equity (ROE) is 11.50%, and return on assets (ROA) is 9.28%, showcasing efficient use of resources. The [Altman Z score](https://www.gurufocus.com/term/zscore/ZM) of 9.93 further highlights Zoom's financial stability.
Market and Industry Context
Operating within the software industry, Zoom continues to demonstrate resilience and growth potential. The company's [Piotroski F-Score](https://www.gurufocus.com/term/fscore/ZM) of 7 suggests a healthy financial position. Despite a slight decline in gross margin growth, Zoom's strategic focus on innovation and expansion positions it well for future success.
Transaction Analysis and Largest Shareholder Context
BlackRock's increased stake in Zoom reflects confidence in the company's long-term prospects. This transaction, while not altering the portfolio weight, signifies a strategic alignment with Zoom's growth potential. Notably, Gotham Asset Management, LLC remains the largest shareholder, underscoring the competitive interest in Zoom's market position.
This article, generated by GuruFocus, is designed to provide general insights and is not tailored financial advice. Our commentary is rooted in historical data and analyst projections, utilizing an impartial methodology, and is not intended to serve as specific investment guidance. It does not formulate a recommendation to purchase or divest any stock and does not consider individual investment objectives or financial circumstances. Our objective is to deliver long-term, fundamental data-driven analysis. Be aware that our analysis might not incorporate the most recent, price-sensitive company announcements or qualitative information. GuruFocus holds no position in the stocks mentioned herein.
