Zoom's Pandemic Growth Stops

Shares of Zoom (Nasdaq: ZM) dropped 1.96% in after-hours trading on Monday after the technology company posted mixed earnings. Financials: Zoom reported earnings per share of $1.29 and revenue of $1.07 billion; both were better than expected. The Good: The company said it will repurchase up to $1 billion in stock. Bad Outlook: The problem with Zoom was its guidance. The company expects to have revenue in the first quarter to be between $1.070 billion and $1.075 billion, and revenue for the full year to be between $4.530 billion and $4.550 billion. Wall Street expected Zoom to have higher projections. Big Picture: Zoom was the darling of Wall Street during the pandemic. The number of users grew rapidly in 2020. But now that the pandemic is ending, Zoom is having trouble maintaining the same user growth. The stock is down 67% in the past 12 months. Final Thoughts: The good news is that as hybrid work becomes more acceptable, Zoom’s enterprise business could grow. Hope you enjoyed this commentary. Please subscribe to Early Bird, a free daily newsletter that helps you identify investment trends: https://earlybird.email/

back

Zoom's Pandemic Growth Stops

bearish

Shares of Zoom (Nasdaq: ZM) dropped 1.96% in after-hours trading on Monday after the technology company posted mixed earnings.

Financials: Zoom reported earnings per share of $1.29 and revenue of $1.07 billion; both were better than expected.

The Good: The company said it will repurchase up to $1 billion in stock.

Bad Outlook: The problem with Zoom was its guidance. The company expects to have revenue in the first quarter to be between $1.070 billion and $1.075 billion, and revenue for the full year to be between $4.530 billion and $4.550 billion. Wall Street expected Zoom to have higher projections.

Big Picture: Zoom was the darling of Wall Street during the pandemic. The number of users grew rapidly in 2020. But now that the pandemic is ending, Zoom is having trouble maintaining the same user growth. The stock is down 67% in the past 12 months.

Final Thoughts: The good news is that as hybrid work becomes more acceptable, Zoom's enterprise business could grow.

Hope you enjoyed this commentary. Please subscribe to Early Bird, a free daily newsletter that helps you identify investment trends: https://earlybird.email/

read-time
1 min
125.02
Target Price
2/ 10
Confidence
1-2 Weeks
Timeframe
catalyst icon
Earnings Release
catalyst icon
News
catalyst icon
SEC
Filing
catalyst icon
Sentiment
catalyst icon
Other Catalyst

Access the latest tools and discussion channels with an account

reddit-sentiment

Reddit Sentiment
Analysis

portfolio-balancer

Portfolio Balancer
with brokerages

sec-dashboard

SEC Dashboard
with NLP

*/}aiodd-ad
next