Zoom Video Communications stock rises 13% after beating revenue and earnings estimates

From Nasdaq: 2024-08-26 22:36:44

Zoom Video Communications stock (NASDAQ: ZM) saw a 13.1% increase on August 22nd while Microsoft (NASDAQ: MSFT) dropped 2%. ZM beat revenue and earnings estimates, reporting $1.16 billion in total revenue and raised full-year guidance. The stock underperformed the S&P 500 in recent years, prompting questions about future performance amidst market volatility.

Key metrics for ZM include growth in enterprise customers and $100,000+ revenue contributors. Revenue has grown over 7x since 2020 to $4.53 billion in 2024, with significant increases during FY2021 and FY2022. ZM’s market leadership in video conferencing and AI initiatives position it well for continued growth in the remote services market.

In terms of returns, ZM had a 13% return in August 2024 and a -5% year-to-date return. From 2017-2024, ZM has had a total return of 0%. Comparatively, the S&P 500 has seen a 2% return in August 2024 and an 18% year-to-date return, with a total return of 151%. Trefis Reinforced Value Portfolio had a 4% return in August 2024 and an 11% year-to-date return, with a total return of 725%.

Overall, ZM’s recent performance, growth trajectory, and market position make it an interesting stock to watch amidst market volatility and macroeconomic uncertainty. Investors are keeping a close eye on how ZM will fare against industry peers and market indexes in the coming months.



Read more at Nasdaq: Zoom Video Communications Stock Is Up 13% In A Day, Why?