One of the ultimate stay-at-home games came out with a second quarter time.
Zoom Video posted adjusted earnings per share of $ 1.32 versus its refinitive estimate of 99 cents. It had sales of $ 959 million, compared to the estimate of $ 906 million.
Two traders believe the information technology company will stay relevant as the economy continues its massive reopening and people return to their commute. However, that doesn’t mean it’s time to buy.
“How are you going to make money with such tough competition? How are they going to monetize the future and what does it look like? Michael Bapis, Managing Director of Vios Advisors at Rockefeller Capital, said Tuesday on CNBC’s “Trading Nation”. “I would also wait and see how they set up revenue for the next quarter or two. So I don’t think you have to get into that now, but video workplaces will definitely stay.”
TradingAnalysis.com founder and CEO Todd Gordon is also optimistic about Zoom’s future. But he’s cautious in the short term and wouldn’t buy stocks at this level.
“Don’t sell it now. I think re-entry is possible. It’s a great company. They have great customer service. They have good margins,” said Gordon.
Zoom stocks are up more than 60% in the past 12 months. However, they have decreased by 20% in the past three months.
One major factor Gordon observed in Zoom’s quarterly report is the churn of small businesses.
“I think small businesses that might otherwise meet face to face are going to drop out,” said Gordon.
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