Zoom Video Communications hasn’t made headlines for many good reasons lately, scraping the bottom of its range as a public company as investors look for other opportunities. However, the stock is jumping today on better-than-expected results, so let’s take a look. 👇
The video chat software vendor’s adjusted earnings per share of $1.22 on $1.15 billion in revenues topped expectations of $1.15 and $1.13 billion. Revenue growth remains anemic, rising just 3% YoY, but the company’s cost-cutting has helped it drive positive earnings vs. last year’s loss.
As for management’s plans to drive growth, CEO Eric Yuan said, “We’re committed to democratizing AI accessibility, offering it to all our customers regardless of business size, included at no extra charge with a paid license.” What that actually means in practice remains unclear, but like other struggling tech companies, Zoom is looking to get in on the AI boom. 📈
The chart below shows that $ZM shares have been finding buyers in the low $60s range during its entire time as a public company. Whether or not that will continue in the long term remains to be seen, but for now, the stock is once again bouncing 10% after hours. 🤷
As for the Stocktwits community, the jury is still out on Zoom. Sentiment is sitting exactly in neutral territory as bulls and bears fiercely debate the company’s future. Got an opinion? Join the conversation and help settle the debate once and for all! 🗫