Zoom Video Communications Inc. (ZM) saw its shares surge over 10% in extended-hours trading after the company reported better-than-expected quarterly results and provided a strong earnings outlook. The video conferencing platform has been a major beneficiary of the shift towards remote work and virtual meetings during the COVID-19 pandemic.
The company reported earnings per share of $1.32 on revenue of $1.02 billion for the quarter, beating analyst expectations of $1.16 per share on revenue of $991.7 million. Zoom’s revenue grew by an impressive 54% year-over-year, highlighting the continued demand for its services as businesses and individuals rely on virtual communication tools to stay connected.
Zoom’s user base also continued to grow, with the company reporting 467,100 customers with more than 10 employees, up 36% from the same period last year. This strong customer growth is a testament to Zoom’s ability to attract and retain users in a highly competitive market.
In addition to its strong quarterly results, Zoom also provided better-than-expected guidance for the upcoming quarter. The company expects to earn between $1.07 and $1.08 per share on revenue of $1.02 billion to $1.03 billion, well above analyst estimates of $0.94 per share on revenue of $986.2 million. This bullish outlook reflects Zoom’s confidence in its ability to continue growing its business and expanding its market share.
Investors reacted positively to Zoom’s strong performance, sending the stock price soaring in after-hours trading. As of writing, Zoom shares were up over 10%, hitting a new all-time high. This surge in the stock price highlights investor confidence in Zoom’s ability to capitalize on the growing demand for virtual communication tools in the post-pandemic world.
Key Chart Level to Monitor:
As Zoom’s stock continues to climb higher, investors should keep an eye on a key chart level that could provide insight into the stock’s future direction. The 50-day moving average is a technical indicator that tracks the average price of a stock over the past 50 trading days. This moving average can act as a support or resistance level, indicating potential buying or selling opportunities.
In Zoom’s case, the 50-day moving average currently sits at around $350, just below the current stock price. If Zoom’s stock price remains above this level, it could signal further upside potential for the stock as it continues its upward trend. However, if the stock price falls below the 50-day moving average, it could indicate a potential reversal in the stock’s direction.
Investors should also pay attention to other technical indicators, such as the Relative Strength Index (RSI) and moving averages, to get a comprehensive view of Zoom’s stock performance. These indicators can help investors identify potential entry and exit points based on historical price movements and trends.
In conclusion, Zoom Video Communications’ strong quarterly results and bullish earnings guidance have propelled its stock price higher in after-hours trading. The company’s continued growth and expanding user base are a testament to its ability to thrive in a rapidly evolving market. Investors should monitor key technical indicators, such as the 50-day moving average, to gauge the stock’s future direction and potential trading opportunities. As Zoom continues to innovate and adapt to changing market conditions, it remains a top contender in the video conferencing space.
