Zoom’s shares rise by 4%
Zoom’s quarterly report has investors daydreaming about different opportunities but will the momentum last?
Videotelephony company, Zoom, released its first-quarter report which surpassed the expectation of financial analysts and indicates a 50% profit growth and 191% growth in its sales.
Zoom declared a total of $956.2 million as opposed to the $906.0 million that financial analysts had predicted previously. This caused the company’s stock value to increase by 4%.
Zoom credits its growth to the optimization of public-cloud resources such as cloud-based phone calls, video calls, and more. The company stated that the projected net profit for the second quarter is $990 million.
As regards what the company intends to do to better its platform, Zoom said that work is ongoing with the sole aim of bettering its Zoom Rooms for meetings and also a $100 million venture capital fund.
Financial analysts have predicted that Zoom’s momentum might be short-lived seeing as the world is slowly drifting back to its ways post COVID-19 pandemic lockdown.