Written by Julia Rostova
Zoom Video Communications (ZM) has been a battleground stock for years. For many investors, it remains a relic of the 2020 pandemic era—a company whose best days are behind it as workers return to the office and Microsoft Teams dominates the enterprise landscape. The market has priced Zoom accordingly, leaving it to trade at multiples typically reserved for legacy, slow-growth businesses.
However, a closer examination of Zoom’s balance sheet and strategic investments reveals a narrative that the market is currently ignoring. This is no longer just a video conferencing company. Zoom is sitting on a massive pile of cash and, more importantly, a multi-billion dollar stake in Anthropic, the AI powerhouse behind Claude. The math is compelling: at current valuations, investors are essentially getting Zoom’s highly profitable core business for free.
The Anthropic Lottery Ticket
In May 2023, Zoom made a strategic decision that could define its future. The company invested $51 million into Anthropic, an AI research and safety company [1] [2]. At the time, Anthropic was valued at approximately $4.5 billion [1]. Fast forward to April 2026, and the landscape has changed dramatically.
Anthropic is now a titan in the generative AI space, having closed a $30 billion Series G funding round in February 2026 at a primary valuation of $380 billion [3]. But the story doesn’t end there. On secondary markets like Forge Global, Anthropic’s implied valuation has recently touched $1 trillion, driven by intense investor demand and a reported revenue run rate that has surpassed $30 billion [3] [4].
So, what does this mean for Zoom? While the exact percentage of Zoom’s ownership is obscured by dilution from subsequent funding rounds, estimates suggest that its stake could be worth anywhere from $2 billion to upwards of $10 billion, depending on the valuation metric used [1] [5].
Let’s assume a conservative estimate. If Zoom’s stake is worth $5 billion, that represents roughly 20% of its entire market capitalization overnight [5]. This is not a speculative asset; Anthropic is a real business generating massive revenue and preparing for a highly anticipated IPO, rumored for late 2026 [1] [5]. When that IPO happens, Zoom’s stake will become a liquid, highly visible asset that the market can no longer ignore.
The Fortress Balance Sheet
The Anthropic stake is just one piece of the puzzle. Zoom’s balance sheet is an absolute fortress. As of the end of its fiscal year 2026 (January 31, 2026), the company held roughly $7.8 billion to $8 billion in cash and short-term investments, with zero debt [1] [5].
This cash pile provides Zoom with immense optionality. It can fund strategic acquisitions, invest heavily in its own AI initiatives (like Zoom AI Companion), or aggressively return capital to shareholders. Indeed, management has been active on the buyback front, repurchasing approximately 20.4 million shares during the full fiscal year [6].
When you combine the cash reserves with the estimated value of the Anthropic stake, the enterprise value (EV) of Zoom drops precipitously.
The “Free” Core Business
Let’s do the math. As of late April 2026, Zoom’s market capitalization hovers around $26 billion to $27 billion [5] [7].
- Market Cap: ~$26.5 Billion
- Minus Cash: ~$7.8 Billion
- Minus Anthropic Stake (Conservative Estimate): ~$5.0 Billion
- Implied Enterprise Value (EV): ~$13.7 Billion
Now, let’s look at the core business. In fiscal year 2026, Zoom generated total revenue of $4.87 billion, up 4.4% year-over-year [6]. More importantly, it is a cash-printing machine. Free cash flow for the year was approximately $1.8 billion to $1.9 billion [8].
If we use the implied EV of $13.7 billion, Zoom’s core business is trading at roughly 7.2x to 7.6x free cash flow. This is an incredibly depressed multiple for a software company with 75%+ gross margins and consistent profitability. The market is pricing Zoom as if its revenue is about to fall off a cliff, yet the company continues to grow its enterprise segment, which saw revenue increase by 6.5% year-over-year to $2.93 billion [6].
Furthermore, Zoom is not resting on its laurels. The company is deeply integrating AI into its platform. The Zoom AI Companion has seen rapid adoption, and the company recently expanded its collaboration with Anthropic to bring meeting intelligence directly into Claude workflows [9]. This integration not only enhances the product but also solidifies the strategic partnership between the two companies.
The Verdict: An Asymmetric Bet
Zoom Video Communications represents one of the most asymmetric bets in the tech sector today. The downside is heavily protected by a massive cash position and a highly profitable, sticky enterprise business. The upside is driven by a hidden asset—the Anthropic stake—that could unlock billions in value in the near future.
The market’s current valuation of Zoom requires a belief that its core business is rapidly deteriorating, a narrative not supported by the financial results. As Anthropic moves closer to a public offering, the spotlight will inevitably turn to Zoom’s ownership stake. When investors realize they can buy a cash-generating enterprise software leader at a single-digit free cash flow multiple and get a multi-billion dollar AI lottery ticket thrown in, a significant re-rating is highly probable.
Recommendation: Buy
Zoom is a compelling buy at current levels. The combination of a rock-solid balance sheet, consistent free cash flow generation, and the hidden value of the Anthropic investment creates a significant margin of safety. Investors should look past the pandemic-era stigma and recognize the profound value disconnect currently present in ZM shares.
Disclaimer: The information provided in this article is for educational and informational purposes only and should not be construed as financial or investment advice. Please conduct your own research or consult with a certified financial advisor before making any investment decisions.
References
[1] Reddit. (2026, April). $ZM the most asymmetric bet on Anthropic/AI. You get the core business basically for free. r/ValueInvesting. https://www.reddit.com/r/ValueInvesting/comments/1stylxm/zm_the_most_asymmetric_bet_on_anthropicai_you_get/
[2] Zoom. (2023, May 16). Zoom Partners with Anthropic to Expand Federated Approach to AI. https://news.zoom.com/anthropic-partnership/
[3] Yahoo Finance. (2026, April). Anthropic Beats OpenAI on Secondary Markets With $1 Trillion. https://finance.yahoo.com/markets/stocks/articles/anthropic-beats-openai-secondary-markets-213828157.html
[4] Yahoo Finance. (2026, April 7). Anthropic Tops $30 Billion Run Rate, Seals Broadcom Deal. https://finance.yahoo.com/news/anthropic-tops-30-billion-run-221045473.html
[5] Schafer, B. (2026, February 27). Want Exposure to Anthropic? Then Buy This AI Software Stock. The Motley Fool via Yahoo Finance. https://finance.yahoo.com/news/want-exposure-anthropic-then-buy-180500566.html
[6] Zoom Communications, Inc. (2026, February 25). Zoom Communications Reports Fourth Quarter and Fiscal Year 2026 Financial Results. Yahoo Finance. https://finance.yahoo.com/news/zoom-communications-reports-fourth-quarter-210500254.html
[7] CompaniesMarketCap. (n.d.). Zoom (ZM) – Market capitalization. https://companiesmarketcap.com/zoom/marketcap/
[8] CentralCharts. (n.d.). Zoom Communications Reports Fourth Quarter and Fiscal Year 2025 Financial Results. https://www.centralcharts.com/en/1137887-zoom-video-communications-inc/news/5013157-zoom-communications-reports-fourth-quarter-and-fiscal-year-2025-financial-results
[9] Zoom. (2026, April 9). Zoom unlocks meeting intelligence for AI workflows with Claude. https://news.zoom.com/zoom-meeting-intelligence-in-claude/
