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shares of zoom Shares closed 11% higher on Monday after Baird analysts estimated the company’s investment in artificial intelligence startup Anthropic was worth between $2 billion and $4 billion, depending on dilution assumptions.
In May 2023, Anthropic announced a partnership with Zoom and revealed that Zoom Ventures had invested in the company. The companies did not disclose the amount of the investment, but Zoom reported $51 million in “strategic investments” in the quarter, according to filings with the U.S. Securities and Exchange Commission.
Baird analysts estimate that all, or at least a “large portion” of that investment went to Anthropic. With the startup currently valued at $350 billion, analysts say Zoom could earn about 78 times its investment.
“While we (and the market) have primarily focused on ZM’s ability to gradually re-accelerate revenue growth and capture AI opportunities, a quieter, hidden gem may be its $51 million investment in Anthropic in 2023,” analysts wrote in a note Monday.
Zoom exploded in popularity at the beginning of the Covid-19 pandemic as employees turned to the video conferencing platform to stay in touch with co-workers, friends and family. But as the pandemic subsided and many employees returned to in-person work, Zoom’s stock price fell from its highs.
Baird analysts said the company’s investment in Anthropic could be a bright spot.
“ZM is literally investing in Anthropic’s Claude’s success, and this investment could become even more meaningful as rumors of Anthropic’s IPO gather momentum,” the analysts wrote.
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