Zoom Video Conferencing Platform

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Zoom Communications: Sell ZM Stock Now?
Forbesยท 2025-08-19 17:10
Core Insights - Zoom Video Communications is set to report its Q2 results on August 21, 2025, with historical data indicating a 74% likelihood of negative one-day stock movements post-earnings, averaging a decline of -7.7% [2][3] Financial Performance - Current consensus forecasts for the upcoming quarter predict earnings per share (EPS) of $1.38 on revenue of $1.2 billion, compared to $1.39 EPS on $1.16 billion in revenue for the same quarter last year [3] - Zoom's market capitalization is currently $22 billion, with trailing twelve-month revenue of $4.7 billion, operating profit of $852 million, and net income of $1.0 billion [4] Historical Earnings Reaction - Over the past five years, there have been 19 observations of Zoom's one-day post-earnings returns, with only 5 positive returns, indicating a 26% chance of a positive reaction [7] - The median return for the 5 positive instances was 8.0%, while the median for the 14 negative returns was -7.7% [7] Post-Earnings Strategy - A pre-earnings strategy suggests weighing historical odds of positive versus negative reactions to inform positions before earnings releases [6] - A post-earnings strategy involves evaluating immediate reactions in relation to medium-term performance to guide trading decisions after earnings announcements [6] Correlation with Peers - Historical data indicates that peer performance can influence Zoom's post-earnings reactions, with potential pricing-in occurring prior to the earnings release [9]