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

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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.
  • Which major companies to report earnings today?

  • Why did Zoom Video June quarter net profit tank?

  • What are analysts rating on Zoom Video stock?

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