Zoom Video Communications, Inc. (NASDAQ:ZM) shares are trading higher Monday. The company is set to report second-quarter earnings after the market close.
What To Know: Zoom is expected to report earnings of $1.05 per share and revenue of $1.11 billion.
The upcoming earnings report follows a month of activity for the stock.
Most recently, rising COVID-19 hospitalization and death levels have caused concerns, specifically related to the EG.5 variant which is considered the “dominant” strain in the U.S. Markets are currently processing the news with caution, in the event that COVID-19 makes a larger resurgence. The stock was a major remote work beneficiary amid the start of the pandemic in 2020.
In the beginning of August, the software sector, among others, was hit by news of Fitch downgrading the long-term credit rating of the U.S.
Software stocks, including Zoom, fell in response to the news.
At the end of July, Zoom fell alongside other tech stocks following weakness represented in Netflix and Tesla’s respective quarterly reports.
On a more positive note, Zoom stock benefitted from reports in early July that the company would be “doubling down” on its technical investments in the Asia-Pacific region. The aim of the investments was cited as boosting growth.
However, prior to that, Zoom and the broader tech sector were once again impacted by news of further Fed rate hikes which could create a challenge environment for growth stocks such as Zoom.
Related Link: Why Novavax Stock Is Trading Higher Today
ZM Price Action: Shares of ZM were up 1.33% at $67.17 at the time of publication, according to Benzinga Pro.
Image by Amr from Pixabay
