I’ve been rather consumed by setting up the podcast over the last two weeks, so have had my eye off of the portfolio to some extent, but I sat up and took notice when Zoom posted their quarterly earnings on Monday. I’d expected fairly big results, just based on the anecdotal evidence of the number of friends I’ve seen using the platform since lockdown began (and complaining about the shortcomings of its competitors), however my bull case was blown away by the massive increase in net income for Q2.
Zoom’s revenues have doubled in the last quarter, and they’re well on top of their costs, resulting in a huge boost to the bottom line.
Zoom also increased their forecasts to year end (for the second time this year, which is fairly unheard of), so the huge results led to a 40% increase in the stock price after results. While some of this has been given back in the following days, the results have spilled over to a few other parts of my portfolio, with DocuSign increasing over 10% just on the increased expectations for their own results, which are due to post at close of business today.
