Zoom video communication
the stock gains ahead of the earnings release scheduled after Monday’s close.
Shares of Zoom Video are up 2% to $347.79 with 27 minutes left on Monday’s trading day, beating the
‘s 0.5% increase and the
Zoom still hasn’t had it easy lately. The stock gained just 1.9% in 2021 and fell 9.2% this month. Will the profit change that?
Zoom is expected to report earnings of $1.16 per share, up 92 cents in the same quarter a year ago. Revenue is expected to grow 49% to $991.2 million, up from $663.5 million.
As a pandemic winner, Zoom is in an interesting place. Some stay-at-home stocks have been through hard times because what they offered is not necessary in a world that is open again.
(CPB) has fallen below pandemic low as no one is hoarding food and costs are rising, while
(PTON) fell TK% Friday, in part because gyms now offer a viable alternative. But life isn’t quite back to normal just yet, and many people are still working from home, giving Zoom more time to turn them into regular customers.
That’s something investors will be looking at, writes RBC analyst Rishi Jaluria: the amount of ‘churn’ in Zoom’s accounts. “Management has consistently communicated expectations for higher-than-historical churn among customers added during the pandemic,” she explains. “So far, the turnover has been below expectations.” Zoom is Jaluria’s top pick, with a price target of $450, up 31% from its recent trading price.
Write to Ben Levisohn at firstname.lastname@example.org