Why Zoom Video Stock Zoomed Lower on Tuesday
Shares of video-teleconferencing company Zoom Video Communications (NASDAQ: ZM) tumbled 7.3% through 10:55 a.m. EST on Tuesday, despite reporting a sizable earnings beat in its fiscal Q3 earnings report last night. Analysts had forecast Zoom would earn only $0.84 per share on sales of $1.1 billion.
They were right about the sales figure -- Zoom hit $1.1 billion on the head. But they were very wrong about Zoom's profits. The company ended up earning $1.07 per share.
If Zoom was more profitable than Wall Street thought it would be last quarter, why is the stock zooming down instead of up today? I think there are two answers: sales and guidance.
Source Fool.com
