Zoom (ZM) shares took flight on Tuesday, soaring 37% in trading after the video conferencing company smashed earnings expectations, raised its full-year outlook and received a slew of analyst upgrades.
Zoom’s recent success has been no secret as the video comms app has captured the zeitgeist during the global pandemic amid the pivot to remote working and a rise in personal calls and digital get-togethers.
The huge take-up of its services has translated into an increased bottom line, according to its latest financial report, which was released late on Monday.
Zoom said that revenues had soared 355% year over year to $663.5m, a figure that crushed the $500.5m Wall Street consensus.
Earnings of $0.92 per share also comfortably beat the $0.45 per share pre-report expectations.
Zoom’s free basic service has been hugely popular in recent months, but it has also attracted a growing number of high budget corporate customers.
Zoom said that it had 370,200 business clients with 10 employees or more during Q2, a 458% rise from the same period a year ago.
After a blowout Q2, the San Diego-based company raised its fiscal year target by more than $1bn to $2.37bn-$2.39bn.
Analysts were lining up to offer upgrades for ZM stock on Tuesday morning.
Goldman Sachs’ Heather Bellini previously had a sell rating but raised her recommendation to neutral and set a higher $402 price target.
BTIG analyst Matt VanVliet was more bullish after stating that Zoom’s quarter was “from a different planet”.
VanVliet went from neutral to buy and offered a $500 price target.
Zoom shares skyrocketed out of the gate on Tuesday and had increased by more than 37% by 12:10pm ET on the Nasdaq.
We want our site users to find good brokers to trade through and to be warned off bad brokers. We encourage you to use our complaints tool to let us know about your experiences.
We have categorised the common complaints to make it easier for you and we have provided some guidance on what you may want to try before submitting a complaint, if our suggestions do not provide you with a resolution then by submitting a complaint, our team will attempt to take up your case with the relevant Broker and if needed, submit a formal report to the regulators.
We use the information you give us to decide if we want to continue to promote a broker on our site.
Your complaint not only helps you, it helps others and it helps us determine if we continue to support the broker.
Have you had a bad experience with a Broker? Let Others Know! Help our community of traders know of issues you have experienced. Just submit your complaint!
Choose if you want us to help resolve it with the broker or if you just want to tell others of your bad experience
Your details are never made public so your complaint is anonymous to the world
If you tick the box asking for our help to resolve it, we will attempt to resolve this with the broker and at least make them aware of the complaint.