Zoom Video Communications Inc.’s stock has been battered by a two-pronged menace in the post-lockdown era: A gradual return to work and blistering competition from Microsoft Corp. and Alphabet Inc.’s Google.
Both factors have played a key role in suppressing Zoom shares
ZM,
which have been flat this year vs. a 10% hike by the broader S&P 500 index
SPX.
Zoom shares declined 3% in trading Tuesday.
On Tuesday at the company’s annual conference, Zoom unveiled its own super-charged word-processing application and answer to Microsoft
MSFT,
Teams, the communications suite that has been siphoning business from Zoom’s web-based videoconferencing service, as well as Alphabet’s
GOOGL,
GOOG,
Google Docs.
Zoom Docs includes AI capabilities that will help users draft, edit, summarize and change tones as well as include items from meeting discussions.
The company said Zoom Docs will make it easier for workers to collaborate on a document within current Zoom products so they don’t have to toggle between tabs or apps.
“Imagine a document suite with generative AI and all its benefits,” Zoom Chief Financial Officer Kelly Steckelberg said in an interview Tuesday afternoon. “It expands on our vision of Zoom as a platform to spend your day and do your job.”
Zoom’s new product is a rejoinder to Microsoft and Google, both of whom have been rolling out AI features to help automate tasks such as drafting and editing in Google Docs and Microsoft Word.
The so-called collaborative applications market, which include web conferencing and virtual-event tools, is considered crucial as more enterprises embrace the power of AI. Zoom is a player, at 11% of the market last year, lagging Microsoft (about 30%) and Google (13.5%), according to market researcher IDC.
Zoom reported 218,100 enterprise customers at the end of the second quarter, up 7% from a year ago.
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