Zoom Rises in Premarket After Impressive Quarter Earnings
After reporting impressive second-quarter earnings for the year propelled by a growing customer base as many more people work from home, Zoom shares climbed before the bell.
Above analyst prediction of $500 million, the video conferencing app recorded 663.5 million for the quarter. This translates to a 355% increase from the same period last year.
The adjusted net income attributable stands at $188.1 million or $0.63 take home per share.
Its shares surged by 39% or $452 before the stock market opened. Brokers raised the price guidance to $161 after the platform beat revenue forecasts.
Similarly, its co-NASDAQ juggernaut Tesla updates 2.4% climb, sustained by positive momentum gained from its generous five-to-one stock split.
Experts in the field note that the California-based firm established itself as a video collaboration market leader. It achieved this by attaining more than 370,000 active users of businesses holding more than ten employees.
This gives it a brighter path ahead of the stiff competition towards the enterprise market.
However, analysts also warned that the surge in growth is driven primarily by high-risk customers, which will quickly pull back as the pandemic eases and life turns back to normal routine again.
Zoom Meetings: Is Growth Sustainable?
In its latest interview, the communication technology firm said that it undergoes higher customer cancellation in recent weeks, more than the historical average.
This supports what experts priorly noted now that more people return to work on big office buildings.
Citigroup representative said that demand would peak before it reaches stagnation and finally collapses. Aggressive marketing and sales advances will not save growth deceleration.
On the other side of the fence, a day after Apple and Tesla’s stock split, shares of the two technology frontrunners are skyrocketing due to popular demand.
Tesla updates its plan to raise up to $5 billion of fresh cash, which will help it survive future debt pressures.
Since its initial public offering in 2010, the electric vehicle manufacturer experienced a six-fold increase in shares. High sales in sustainable automobiles drive the shares up during the pandemic.
