Connect with us

Hi, what are you looking for?

Stock

Zoom Video share price forecast after Q2 results

Zoom Video Communications, Inc. (NASDAQ: ZM) reported second-quarter results last Monday, and the company’s management updated financial guidance for the third fiscal quarter and for the full 2023 fiscal year.

Second-quarter results missed estimates, and Citigroup analyst Tyler Radke said that the quarterly results showed many of the concerns that drove the firm’s recent downgrade.

Second quarter results showed many of the concerns that drove the firm’s recent downgrade

Zoom Video is an American communications technology company that provides video telephony and online chat services through a cloud-based peer-to-peer software platform. The company was incorporated in 2011 and completed an initial public offering in 2019.

Zoom Video reported second-quarter results last Monday; total revenue has increased by 7.8% Y/Y to $1.1 billion, which was less than expected, while the non-GAAP earnings per share were $1.05 (beats by $0.12).

JMP Securities analyst Patrick Walravens, who had a market perform rating on Zoom Video, said that overall revenue results are getting worse, as online sales fell 9% year-over-year, worse than the 2% decline seen last quarter.

Zoom Video shares plunged nearly 15% on Tuesday after the company reported second-quarter results, and Citigroup analyst Tyler Radke said that the quarterly results showed many of the concerns that drove the firm’s recent downgrade.

BTIG analyst Matt VanVliet downgraded Zoom to neutral from buy following the results, and it is also important to mention that hedge fund Tiger Global Management recently disclosed that it exited its stake in Zoom. Matt VanVliet added:

Zoom Video is likely to keep facing continued macro headwinds, including its online business and continued pressure in the EMEA region.

The company’s management updated financial guidance for the third fiscal quarter and for the full 2023 fiscal year. Total revenue for the third fiscal quarter should be between $1.095 billion and $1.10 billion vs. a consensus of $1.15 billion, while the non-GAAP income from operations should be between $325 million and $330 million.

Total revenue for the full fiscal year should be between $4.38 billion and $4.39 billion vs. a consensus of $4.53 billion, while the non-GAAP income from operations should be between $1.44 billion and $1.45 billion.

According to Citigroup analyst Tyler Radke, the updated financial guidance for the third fiscal quarter and for the full 2023 fiscal year is much worse than he feared.

$80 represents the current support level

Data source: tradingview.com

The current support level stands at $80, while $100 represents the first resistance level. If the price falls below $80, it would be a “sell” signal, and we have the open way to $75 or even below.

On the other side, if the price jumps above $100, the next target could be $110.

Summary

Zoom Video reported weaker than expected second-quarter results and lowered the revenue outlook for the 2023 fiscal year. Citigroup analyst Tyler Radke said that the quarterly results showed many of the concerns that drove the firm’s recent downgrade, and probably it is not the best moment for buying shares of this company.

The post Zoom Video share price forecast after Q2 results appeared first on Invezz.

Enter Your Information Below To Receive Free Trading Ideas, Latest News And Articles.






    Your information is secure and your privacy is protected. By opting in you agree to receive emails from us. Remember that you can opt-out any time, we hate spam too!

    You May Also Like

    Stock

    Solana (SOL/USD) is enormously underrated as a cryptocurrency project, even with its hiccups – including the latest exploit on one of the ecosystem apps....

    Editor's Pick

    The new eSIM infrastructure will help modernise the IoT connectivity market with fast, secure connections and reduced vendor lock-in. 1oT, a tech startup from...

    Economy

    The latest Job Openings and Labor Turnover Survey from the Bureau of Labor Statistics shows the total number of job openings in the economy...

    Economy

    U.S. District Court Judge Reed O’Connor recently ruled to uphold the rights of employers granted in the Religious Freedom Restoration Act, rather than uphold...

    Disclaimer: Dealwithbiz.com, its managers, its employees, and assigns (collectively “The Company”) do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.


    Copyright © 2023 Dealwithbiz.com