“Zoom is a great product and obviously the demands from the telco point of view are quite heavy,” said Sissons, speaking on BNN Bloomberg on Thursday. Yuan in a press release.īut while the good times continue for Zoom, investors should be wary about giving into their fear of missing out with the stock, says Sissons, who cautions on its high valuation. “Our ability to keep people around the world connected, coupled with our strong execution, led to revenue growth of 355 per cent year-over-year in Q2 and enabled us to increase our revenue outlook to approximately $2.37 billion to $2.39 billion for FY21, or 281 per cent to 284 per cent increase year-over-year,” said Zoom founder and CEO Eric S. Those numbers handily beat analysts’ estimates while management predicted more strong growth up ahead.
Zoom’s fiscal second quarter, delivered on September 1, saw the company earn $0.92 per share over the quarter ended July 31. Zoom Video Communications ( Zoom Video Communications Stock Quote, Chart, News NASDAQ:ZM) has in many ways been the story of the pandemic, with its share price more than tripling since the COVID-19 lockdowns of March and April when everyone and their dog started using the Zoom platform to do virtually everything from carrying out business meetings to talking to Grandma to educating their children.Īnd the results have been speaking for themselves, with the company’s revenue climbing 355 per cent to $663.5 million in its latest quarter.
Is Zoom’s high valuation worth it? Not likely, says Darren Sissons of Campbell, Lee and Ross, who claims that while the company’s product has obviously found a huge opportunity in the current marketplace, Zoom’s platform won’t have the advantage forever.
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