Zoom Communications stock surged 12.7% after a strong fiscal Q2 earnings report on Aug. 21, prompting a raised full-year guidance and increased investor confidence. CEO Eric Yuan emphasized the company’s AI-driven tools and innovative collaborations. Currently trading at 24 times forward earnings, Zoom’s market cap is $24.5 billion.

Zoom’s Q2 results beat estimates with an adjusted EPS of $1.53, a 10% YOY increase. Revenue hit $1.22 billion, up 4.7% YOY, driven by enterprise revenue growth. Operating margins improved, and free cash flow rose 39% YOY. Full-year guidance was raised, with EPS projected between $5.81 and $5.84 and revenue between $4.825 billion to $4.835 billion.

Wall Street reactions to Zoom’s Q2 results varied, with Rosenblatt and RBC Capital raising price targets to $110 and $100, respectively. Needham reiterated a “Buy” rating with a $100 price target, while KeyBanc remained cautious with a $69 target due to sector compression. Analysts overall rate ZM stock a “Moderate Buy” with an average price target of $90.08.

Read more at Yahoo Finance: Should You Buy the Post-Earnings Pop in Zoom Stock?