Another day, another tech stock rocketing higher after crushing earnings. Ho hum.
Huge earnings beats are becoming a weekly event, and there is no denying that the recent stock market action is producing some interesting results. With index inclusion decisions looming, trading should stay interesting.
Zoom Video Communications (ticker: ZM) stock is up 27% in premarket trading Tuesday after reporting second quarter numbers Monday evening. The company earned 92 cents a share. Analysts were looking for 45 cents in per-share earnings. It was a huge beat.
The stock is at $411 in premarket trading, bringing year-to-date gains to roughly 500%. Zoom’s market capitalization is now roughly $115 billion , making it worth more than IBM ( IBM ). Impressive.