Zoom Beats Q2 Estimates but Stock Drops 2.5% on Anthropic Stake Uncertainty
ZM sits 38% above its 52-week low of $70.7 on elevated volume (1.9× avg).
Summary
Zoom reported Q2 adjusted EPS of $1.55, beating the $1.48 consensus, on revenue of $1.28B, up 4.9% YoY and above the $1.27B estimate. Despite the beat, shares fell 2.5% in after-hours trading to $98.36. The company posted a $1.6B gain on strategic investments, largely from its 0.31% stake in Anthropic, which was valued at $1.27B at the end of April. With Anthropic's IPO expected by October at a potential $2T valuation, Zoom's stake could be worth $6-7B, but investors are uncertain about the company's plans for the position. The earnings call tonight will be closely watched for clarity on whether Zoom will sell shares to fund buybacks or other uses.
At the time of this announcement, ZM was trading at $97.29 on NASDAQ in the Technology sector, with a market capitalization of approximately $29.6B. The 52-week trading range was $70.70 to $114.74. This news item was assessed with neutral market sentiment and an importance score of 7 out of 10. Source: Dow Jones Newswires.