Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 76% of retail investor accounts lose money when trading spread bets and CFDs with this provider. You should consider whether you understand how spread bets and CFDs work, and whether you can afford to take the high risk of losing your money.
Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 76% of retail investor accounts lose money when trading spread bets and CFDs with this provider. You should consider whether you understand how spread bets and CFDs work, and whether you can afford to take the high risk of losing your money.

​​​​​​​​​​​Zoom Q2 earnings: more than just a pandemic stock?​​​​​​​​​​​

Zoom prepares to report Q2 earnings, but will the gradual easing of restrictions hinder its growth path?

Source: Bloomberg

When will Zoom report its latest earnings?

Zoom reports earnings for the second quarter (Q2) of their fiscal year after market close on Monday August 30, 2021.

Zoom enjoyed incredible pandemic success, but will that continue?

Zoom was perhaps the posterchild of the new lockdown norm, with this previously lesser-known tech company managing to fast-forward its development as business, friends, and family interactions were pushed online.

Much like other such benefactors, the critical question for investors is whether the new normal involves a major role for companies such as Zoom. Ongoing restrictions do ensure an environment for the company to still thrive, although quite how much they have managed to embed their product into business and personal life beyond those temporary restrictions remains to be seen.

The stock is currently over 400% up from pre-pandemic levels, highlighting the downside risk in the event of an earnings report which signals a reversal of this huge growth trajectory. Analysts do expect some degree of slowdown in growth given the gradual removal of restrictions in the likes of the US and UK.

However, expectations remain lofty, with analysts largely expecting the numbers to move in the right direction.

Zoom earnings – what to expect

Markets expect to see Zoom revenues continue their upward trajectory, with forecasts of $990 million signalling a potential 49% rise compared with a year prior. Importantly, that would be an improvement from the $956 million reading last quarter.

Interestingly, markets are expecting a sharp rise in costs for the stock, which could eat into profitability. Pre-tax profits are predicted to come in at $375 million, and while this is 34% up from last year, it also represents a decline from the $403 figure in the first quarter (Q1).

Finally, that decline in profitability is expected to be reflected in the earnings per share reading of 1.16, which would be down from the 1.32 seen in Q1.

Zoom earnings – valuation and broker ratings

Despite an impressive rise over the course of 2020 and 2021, there are still many proponents of this stock, with 15 brokers rating the stock a ‘strong buy’ or ‘buy’ recommendation. There are twelve ‘holds’ and one ‘sell’ recommendation.

Zoom shares – technical analysis

Zoom shares have largely been trending downwards over the course of the past 10 months, with fears over how the company will fare post-pandemic hurting sentiment.

However, should the firm prove that it can continue to grow despite easing restrictions, we could see price break higher from this period. T

o the upside, we have trendline resistance to watch out for, with the recent level of $406.04 also playing a key role. A rise through that level would bring about a bullish breakout signal, with the stock at risk of a further near-term downside until that break occurs.

Source: ProRealTime

Related articles

Live prices on most popular markets

  • Equities
  • Indices
  • Forex
  • Commodities
website terms and agreements. Prices are indicative only. All share prices are delayed by at least 15 minutes.

" edit-mode="false" style="--live-prices-table-rows:5" >


Prices above are subject to our website terms and agreements. Prices are indicative only. All share prices are delayed by at least 15 minutes.

Prices above are subject to our website terms and agreements. Prices are indicative only. All shares prices are delayed by at least 15 mins.

Plan your trading week

Get the week’s market-moving news sent directly to your inbox every Monday. The Week Ahead gives you a full calendar of upcoming economic events, as well as commentary from our expert analysts on the key markets to watch.


You might be interested in…

Find out what charges your trades could incur with our transparent fee structure.

Discover why so many clients choose us, and what makes us a world-leading provider of spread betting and CFDs.

Stay on top of upcoming market-moving events with our customisable economic calendar.


This information has been prepared by IG, a trading name of IG Markets Limited. In addition to the disclaimer below, the material on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication. Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients. See full non-independent research disclaimer and quarterly summary.