What Happened?

Shares of online legal service provider LegalZoom (NASDAQ: LZ) jumped 2.6% in the afternoon session after Bank of America upgraded its rating on the stock to a 'Buy'. The upgrade from the major financial firm signaled a positive outlook for the company's shares. In its note, the bank mentioned it saw substantial upside potential for LegalZoom. This vote of confidence likely spurred investor interest, leading to the stock's rise. The upward move also built on momentum from the previous trading session, where the stock had already posted a gain.

After the initial pop the shares cooled down to $9.82, up 2.9% from previous close.

Is now the time to buy LegalZoom? Access our full analysis report here.

What Is The Market Telling Us

LegalZoom’s shares are somewhat volatile and have had 14 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful but not something that would fundamentally change its perception of the business.

The previous big move we wrote about was 6 days ago when the stock gained 3% on the news that the company announced the renewal of its partnership with Defy Ventures. This renewed commitment was set to fund the national expansion of Defy's mental well-being and post-release entrepreneurship initiatives for formerly incarcerated individuals. The partnership built on a track record of success that provided a pathway to economic opportunity for approximately 8,000 people.

LegalZoom is up 29.8% since the beginning of the year, but at $9.82 per share, it is still trading 12.2% below its 52-week high of $11.18 from August 2025. Investors who bought $1,000 worth of LegalZoom’s shares at the IPO in June 2021 would now be looking at an investment worth $259.31.

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