Zoom is set up for a strong 2026. This options trade lets you benefit from gains

Zoom’s Positive 2026 Outlook Presents Options Trade Opportunity for Investor Growth

Imagine a race car that used to win every race, but now it’s not in the spotlight. Instead of speeding ahead, it’s quietly tuning its engine and saving fuel for the long journey. That’s kind of what Zoom is doing right now—and it matters for investors who want to know if this company still has a place in their portfolio.

Why Investors Should Care About Zoom’s Next Chapter

Zoom was a superstar during the pandemic, but now things have changed. Even though it’s not growing as fast, Zoom is making more money on every dollar it earns and finding new ways to stay important. Investors are watching to see if Zoom can keep delivering value, especially as it focuses more on big business customers.

Zoom’s Strengths: The Bull Case

  • Strong Profits: Zoom has a net margin of about 33%. This means for every $1 it makes, about 33 cents is profit—better than most big software companies.
  • Lots of Cash: Zoom holds over $7 billion in cash and has no big debts. This gives it a safety net that many companies wish they had.
  • New Products: Products like Zoom Phone and Contact Center are growing fast, with double-digit gains. These tools help businesses talk to their customers, making it harder for them to switch to a competitor.
  • Smart Use of AI: Zoom’s “AI Companion” isn’t just for show. It helps users work better and could make Zoom even more valuable without costing too much.
  • Share Buybacks: Zoom is using its cash to buy back its own shares, which can make each share more valuable for investors.

According to Statista, Zoom’s annual revenue was around $4.4 billion in 2023, showing it’s still a major player even after the pandemic boom.

The Bear Case: What Could Go Wrong?

  • Slower Growth: Zoom’s revenue is growing only about 3.5% a year, much less than during its peak. Some investors worry this means the best days are over.
  • Stiff Competition: Big names like Microsoft Teams and Google Meet are fighting for the same business customers, which could make it harder for Zoom to keep growing.
  • Market Skepticism: Many investors still see Zoom as a “pandemic stock” and aren’t convinced it can be exciting again.
  • High Expectations for New Products: If new tools like Zoom Phone or AI features don’t catch on, it could slow the company’s comeback.
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Historically, tech companies that shift from rapid growth to steady profits can face years of “being ignored” by the market. For example, Cisco and Oracle both went through long periods where their stocks didn’t move much, even as their businesses stayed strong (source).

Technical Signs and Trade Ideas

Zoom’s stock price recently broke above $86, a level it couldn’t pass for almost two years. This could mean more investors are getting interested again. Some traders expect it to reach $100, or even $120 if future earnings look good.

For those who like options, one idea is to buy a call spread: buy a call at $85 and sell one at $95, both expiring in February 2026. This trade limits your risk to $349 per contract but could earn up to $651 if Zoom’s stock goes above $95.

Investor Takeaway

  • Don’t write off Zoom just because its high-growth days are over—it’s quietly building a strong, profitable business.
  • Watch how new products like Zoom Phone and AI tools perform; they could be the next big growth drivers.
  • Consider Zoom’s strong balance sheet and cash returns as a sign of stability, especially if you want safer tech stocks.
  • If you’re cautious, look at defined-risk strategies like call spreads to get upside exposure without risking too much.
  • Remember, even when a company isn’t in the headlines, it can still be a smart part of your portfolio for the long term.

For the full original report, see CNBC

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