Zoom Video Taps AI, Gets New Buy From Josh Brown: What's Going On?

Zoom Video Communications Inc ZM shares were roughly flat on Wednesday after staging a rally on Tuesday. Here's a look at what's driving the action.

What Happened: On Tuesday, Zoom announced that its generative AI assistant, Zoom AI Companion, will now be included for customers with paid services at no additional cost. 

Zoom AI Companion helps to increase productivity, enhance user skills and improve team effectiveness. The digital assistant will be available across all Zoom platforms. Zoom also said it renamed its AI-powered sales software to "Zoom Revenue Accelerator."

"We are transcending the hype in generative AI by delivering tangible products and disrupting the industry's pricing model, making it easy for businesses and people like you and me to leverage generative AI's full benefits in our day-to-day work," said Smita Hashim, chief product officer at Zoom. 

Tuesday on CNBC's "Fast Money Halftime Report," Ritholtz Wealth Management's Josh Brown announced that he decided to buy Zoom shares after taking notice of the company's pricing model. 

Although he emphasized that he's only in the name for a trade on a technical breakout, he noted that he didn't realize how competitive the company was on price. 

"This is purely on technicals, however there was something fundamental that forced me to look at the chart," he said. 

Brown's firm previously used RingCentral services, but after dealing with unsatisfactory customer service, he decided to shop around and realized Zoom was more competitive on price than he thought.

"Everybody needs compliant telephony solutions. Zoom is playing heavily in a market that I didn't really understand how well they were doing," Brown said. 

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ZM Price Action: Zoom shares were down 0.31% at $73.05 at the time of publication, according to Benzinga Pro.

Photo: courtesy of Zoom.