Zoom (ZM) shares initially rise on upbeat Q2

[syamfx2020]

Shares of California-based Zoom Video Communications (NASDAQ: ZM) rose 8% in after-hours trading on Monday after the company reported upbeat results for its second quarter. For the last quarter, Zoom revenue rose 4% year-on-year to $1.14 billion, beating Wall Street estimates of $1.1 billion.

• Earnings per share (EPS) $1.34 vs. $1.05 expected
• Revenue $1.14 billion vs. $1.1 billion expected

Zoom provides a communications platform that connects people through video, voice, chat, and content sharing. Zoom's Q3 solid results were boosted after the company tried to overcome a post-pandemic slowdown by offering a wider range of collaboration tools. Zoom also raised guidance for full-year EPS to between $4.63 and $4.67 on expected revenue of $4.48 billion to $4.49 billion.

Zoom revealed several new artificial intelligence (AI) innovations and plans to continue investing in AI technology to further support its customers’ operations. ZoomIQ, one recent AI-powered feature that the company expanded earlier this year, in addion the company introduced other AI features like Zoom Virtual Agent and Zoom Contact Center.

‘Our mission of delivering limitless human connection remains core as we continue to innovate and expand our platform to help bring value and enhanced productivity to our customers with new AI features like Zoom IQ Meeting Summary and Team Chat Compose, as well as Intelligent Director.’ – Zoom CEO Eric Yuan said.

$ZM short-term technical outlook​

Zoom shares rose to above $73 after the earnings announcement but reversed from an early gain and traded below $70 ahead of the market opening. In the short term, if the stock settles above $70, then the next short-term resistance is located in the area of $75, a break and close above $75 will confirm a possible move to $79.50 and then $84.50. On the downside, the first nearest support level is located at $64. In case it breaks below this level, it will head towards the next support level which is located at nearly $61.50 then $60.

Read more - https://gulfbrokers.com/en/zoom-zm-shares-rise-on-upbeat-q2