ZM: Allianz ups stake as analyst sentiment stabilizes; $150M privacy suit looms

Court: N.D. California

Case: 3:20-cv-02353

Zoom ZM saw renewed institutional interest in Q1 2025, with Allianz Asset Management increasing its holdings by 9.2%, bringing its total position to over 1.1 million shares valued at $82 million. Several other major funds, including Victory Capital and Massachusetts Financial Services, also raised their stakes. These moves come as analysts maintain a cautiously optimistic view on Zoom’s prospects, even as the company continues to manage the reputational effects of a $150 million investor settlement tied to data privacy concerns.

Zoom stock traded at $75.21 on July 22, supported by solid quarterly earnings and improving analyst price targets.

Key Takeaways

• Allianz Stake Rises: Now owns 1.1M shares worth $82M after purchasing an additional 94K shares in Q1 2025.
• Broader Institutional Activity: Victory Capital increased holdings by 119.5%; MFS Co. MA added 45,298 shares.
• Analyst Price Targets Revised: JPMorgan ($85), Rosenblatt ($100), RBC ($95), Wells Fargo ($80); average consensus is $87.
• Stock Performance: Currently at $75.21; 52-week range spans $55.06 to $92.80.
• Earnings Beat: Reported $1.43 EPS in Q1 vs. $1.30 consensus; revenue hit $1.17B, up 2.9% YoY.
• Insider Activity: Executives including the COO and other senior leaders sold shares totaling $7M over the past quarter.

Timeline Overview

• July 2019: Security flaws in Zoom’s encryption surface publicly.
• March 26–27, 2020: Data-sharing with third parties like Facebook disclosed; stock drops nearly 20%.
• May 18, 2020: Shareholders sue Zoom for misleading statements about encryption.
• July 12, 2023: Company agrees to a $150 million settlement to resolve investor claims.

Allegations Include

Zoom was accused of misrepresenting the strength of its encryption, claiming to use end-to-end encryption while relying on less secure transport encryption. Investors also alleged that the company failed to disclose data-sharing practices that exposed user information to third parties, triggering significant stock losses.

Investor Update

Zoom’s $150 million payout closes the chapter on its encryption and data privacy missteps from 2019–2020. Though investor confidence has since recovered, the case continues to reflect on how the company handles user trust. Affected shareholders may still be eligible to submit claims for recovery under the settlement.

You can check more information about it and file for a payout HERE.