Zoom Video Gets Rocked After Earnings – Now What?

Zoom Video  (ZM) – Get Report was getting smacked around after reporting quarterly earnings, dropping about 14% on Tuesday.

Bulls are going to be especially frustrated with the post-earnings reaction, given the good report Zoom issued.

The company easily beat on earnings and revenue expectations for its fiscal third quarter. Fourth-quarter and full-year guidance even came in better than expected.

Management also provided a strong earnings outlook for next fiscal year, with its bottom-line estimates coming in ahead of consensus expectations.

However, it doesn’t seem to matter. The market is selling Zoom stock lower on the results as analysts start to worry about the stock’s valuation.

The reaction is not helping other pandemic plays, like DocuSign  (DOCU) – Get Report and Peloton  (PTON) – Get Report, which are down 6% and 4.2%, respectively.

Trading Zoom Video

Daily chart of Zoom Video stock.

Daily chart of Zoom Video stock.

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