ZM Stock Price Increases 2.9% Pre-Market: Why It Happened

By Amit Chowdhry ● March 1, 2021
  • The stock price of Zoom Video Communications Inc (NASDAQ: ZM) is trading up 2.9% pre-market as of 7:17 AM ET. This is why it happened.

The stock price of Zoom Video Communications Inc (NASDAQ: ZM) is trading up 2.9% pre-market as of 7:17 AM ET. Bullish investors are responding to an upcoming earnings report.

Zoom Video Communications will be announcing its fiscal fourth quarter results after the market closes today. The revenue for the company has increased by over 300% over the past two quarters, which is largely driven by the shelter-in-place orders associated with the COVID-19 pandemic.

And Zoom is also expected to see its streak for strong growth continue for the fourth quarter. Sales are expected to increase by 331% to $811.04 million for the three months ended in January, according to Bloomberg data. This would be a slight deceleration from the 367% growth in the previous quarter.

Investors will also be paying close attention to the Zoom Phone cloud-based phone platform service metrics. In January, Zoom Phone hit 1 million seats and the service has been expanding globally at a rapid pace.

Disclaimer: This content is intended for informational purposes. Before making any investment, you should do your own analysis.