Zoom Video Communications, possibly the ultimate corporate poster kid of Covid-19, released another blockbuster quarter of financial results.
The video conferencing specialist announced that its earnings for the quarter ended December 31. October was 99 cents a share, well above Wall Street analysts’ consensus expectation of 76 cents. Sales more than quadrupled to $ 777. 2 million, far better than analysts forecast for $ 694 million.
Shares in Zoom closed the trading day at $ 478. 36, an increase of more than 1%, but then fell back by 5% after the results were published. The stock is up more than 600% in 2020 as the company’s technology has become a bedrock of the pandemic operating environment for businesses, schools, and institutions of all kinds.
However, the start-up faces a number of established competitors. Microsoft, whose teams are competing with Zoom, recently lifted the 40-minute time limit for subscribers to the free tier. The teams also plan to give users the ability to stay in touch with up to 300 other participants soon. Zoom has limited free meetings to 40 minutes for no more than 100 participants.
While Zoom stock has been near constant growth over the year, recent news about Covid-19 vaccines has rewarded its stake in many traditional building blocks of the economy. Zoom stock fell more than 30% in late October and early November as some investors shifted their bets on proven companies that led the macroeconomic rebound.
Meta Marshall, an analyst at Morgan Stanley, said in a statement to clients last week that Zoom’s stock will have a lot of upside even after the decline in remote working. “While a vaccine will change the outlook for the number of employees who will work from home by the end of 2021, it doesn’t change the fact that most employees will be staying home in 2020 (at least for a good part of the week ). , » She wrote.
Zoom Video Communications, Earnings, Inventory
World News – United States – Zoom Video Communications Wipes Out Quarterly Earnings Estimates
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