Home Uncategorized Zoom stock rises then falls after blockbuster earnings

Zoom stock rises then falls after blockbuster earnings

395
0
Zoom Video Communications reported its first quarter revenues had jumped 169 versus Q1 2019, resulting in profits of 27m, as its video conferencing app became a focal point for investors in the last three months. The company has been thrust into the spotlight by the coronavirus pandemic and the stay at home economy, with mass working from home driving demand for its services and sending the firms share price soaring more than 200 in 2020 so far. Yesterday, Zoom management also doubled its revenue guidance for the full year, although investors will be watching the firms costs closely in the coming quarters. On the companys earnings call, management revealed that its margins had fallen over the past year, as the cost of adding cloud computing capacity to meet customer demand ate into profits.