With the pandemic, Zoom Video Communications (ZM) was a no-brainer trade.
After all, with more people working and schooling from home, ZM was one of the top beneficiaries of it. So, it came as no surprise that earnings were explosive.
Revenue soared 355% to $663.5 million, topping analyst expectations for $500.5 million. Adjusted EPS came in at 92 cents, which was more than double expectations for 45 cents.
Zoom also raised its guidance for the full 2021 fiscal year. Revenue is now expected to fall in a range of $2.37 billion and $2.39 billion, which, according to CNBC, implies 282% growth in the middle of the range. That’s also above estimates for sales of $1.81 billion.
“Organizations are shifting from addressing their immediate business continuity needs to supporting a future of working anywhere, learning anywhere, and connecting anywhere on Zoom’s video-first platform. At Zoom, we strive to deliver a world-class, frictionless, and secure communication experience for our customers across locations, devices, and use cases,” said Zoom founder and CEO, Eric S. Yuan.
“Our ability to keep people around the world connected, coupled with our strong execution, led to revenue growth of 355% year-over-year in Q2 and enabled us to increase our revenue outlook to approximately $2.37 billion to $2.39 billion for FY21, or 281% to 284% increase year-over-year.”
However, Zoom isn’t the only way to trade the story.
Other hot Zoom-like stocks to keep an eye on include:
DocuSign Inc. (DOCU), which soared this week after Zoom Video Communications’ earnings report. “Zoom’s earnings, which topped expectations, suggested that technologies enabling remote business functions are still seeing explosive growth due to the pandemic. DocuSign, which enables electronic signatures on legal documents, is due to report its own results after Thursday’s closing bell,” noted MarketWatch.
Slack Technologies (WORK), which is now up to $34 a share is also benefiting as people work and attend school from home. The company will release its next earnings report on Tuesday, September 8, 2020 after the closing bell.
The post One of These Stocks Could Produce the Next Zoom-Like Boom appeared first on Morningology.
