Zoom rises as it gets set to increase price of Zoom One Pro Plan by 7%
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Zoom Technologies (NASDAQ:ZM) rose more than 1.5% in mid-day trading on Monday as Barclays noted the communications software company is getting ready to increase the price of one of its popular subscription plans.
Analyst Ryan MacWilliams, who has an equal-weight rating on Zoom (ZM), noted that contacts have said the company emailed of its Zoom One Pro Plan that the monthly price will increase by $1 to $15.99 per month, roughly a 7% increase, starting March 1.
"We view this as a positive for Zoom given broad growth concerns and investorsâ lower expectations for the near-term business (we expect this price increase could directly impact revenues starting in the [second-quarter fiscal 2024])," MacWilliams wrote in a note to clients.
MacWilliams added that it could impact as much as 15% of Zoom's (ZM) revenue base in the near-term, especially given that nearly half of its customers are on a sub-annual plan, according to information the company gave at its investor day.
Last week, investment firm MKM Partners downgraded Zoom (ZM) on worries over slowing growth.