US stock market update: Why is Zoom Video stock on a downtrend post earnings?

How will markets open today?

• Stock futures indicate a flat to positive opening for the US stock market.
• Palo Alto stock surged in premarket post strong quarterly results.
• Intuit, JD.com, J.M. Smucker, Macy’s, Nordstrom to report earnings today.
• On economic front, July new home sales will be reported, along with August manufacturing PMI.

Zoom Q2 Results 2022: Key Highlights

• Zoom Video stock fell 9% in pre-market post below-expected June quarter results and revenue forecast.
• Revenue growth slowed down to 8% on-year to $1.1 billion amid strength in the US dollar as per the company.
• Net income fell 86% on-year to $45.7 million as it increased spending on sales and marketing.
• Its Enterprise customers which include UCLA & Warner Bros rose 18% on-year to 204,100 & enterprise business grew 27% to $599 million.
• Zoom Phone licenses hit a record of nearly 4 million, up 100% on-year.
• Citigroup analyst has downgraded it to ‘Sell’ from neutral with target price of $91 per share.
• Zoom stock is down more than 73% and its Price-to-earnings ratio is down 67% from its 1 year high.

Zoom Q2 future guidance:

• Management lowered its revenue and earning projections for next quarter and 2023 fiscal year.
• For 2023 it expects $4.4 billion in revenue, implying 7% growth, below analysts’ estimates.
• Zoom expects its online business to be down 7% to 8% in the full fiscal year amid lower demand.