Zoom Shares Rise After Bullish Call from Spruce Point

Fiona Craig

Fri, April 24, 2026 astatine 9:10 AM CDT 2 min read

Shares of Zoom Communications (NASDAQ:ZM) climbed astir 3% connected Friday aft Spruce Point Capital Management issued a beardown bargain proposal connected the stock.

Spruce Point released a elaborate study arguing that Zoom is trading importantly beneath its intrinsic value, pointing to important upside potential. The steadfast outlined 9 cardinal actions it believes absorption and the committee could instrumentality to unlock shareholder value.

A cardinal proposal involves improving superior allocation. Spruce Point highlighted that Zoom holds astir $7.8 cardinal successful nett currency and is expected to make adjacent to $2 cardinal annually successful escaped currency flow.

The steadfast projected a $4 cardinal modified Dutch auction tender connection alongside the instauration of a $1 per stock dividend, equating to an approximate 1.1% yield.

The study besides flagged opportunities to optimise operating expenses. According to Spruce Point, Zoom’s gross per worker has fallen 14% since 2020, portion comparable large-cap SaaS peers person seen increases of 53% and 44%.

By combining outgo reductions with gross maturation initiatives, the steadfast estimates Zoom could assistance its two-year EBITDA CAGR from 4.0% to 13.3%, perchance supporting an 83% summation successful the stock price.

Additional proposals see restructuring planetary operations, enhancing selling efforts, avoiding missteps successful mergers and acquisitions, reducing insider selling, and simplifying the company’s dual-class stock structure.

Spruce Point besides suggested pursuing inclusion successful the S&P 500 and considering a merchantability of the concern if absorption fails to present meaningful shareholder worth wrong a year.

The steadfast added that investigation of large bundle buyouts implicit the past 5 years indicates that a backstage equity acquisition could connote a valuation premium of astir 33%, perchance establishing a level for Zoom’s takeover value.

Zoom Communications banal price