10 Worst Cloud Stocks To Buy According to Short Sellers

8. Zoom Video Communications, Inc. (NASDAQ:ZM)

Short % of float: 4.02%

Number of Hedge Fund Holders: 41

Zoom Video Communications, Inc. (NASDAQ:ZM), based in San Jose, California, gained widespread recognition during the pandemic as its video conferencing service became essential during lockdowns. Now, the company is expanding its focus by introducing new business-oriented features, such as word processing capabilities and increased integration of artificial intelligence to enhance its core video services.

On September 18, Zoom Video Communications, Inc. (NASDAQ:ZM) and Mitel announced a strategic partnership to offer enterprises a hybrid cloud communications solution. This collaboration merges Zoom’s advanced capabilities with Mitel’s established platform, creating a “Zoom-first” experience within Mitel’s services. Customers will be able to access Zoom Workplace and Zoom AI Companion without requiring additional plug-ins, addressing the rising demand for flexible unified communications (UC).

Zoom Video Communications, Inc. (NASDAQ:ZM)’s Q2 2025 results outperformed expectations, with non-GAAP operating income reaching $456 million and total revenue hitting $1.16 billion. The company also raised its full-year revenue forecast to $4.63 billion to $4.64 billion, and expects non-GAAP earnings per share of $5.29 to $5.32.

According to Insider Monkey’s Q2 2024 database, 41 out of 912 hedge funds held shares in Zoom Video Communications, Inc. (NASDAQ:ZM). The largest shareholder was AQR Capital Management, with a stake valued at $337.2 million.