Why Zoom Video Communications, PagerDuty, and Yext Slumped Today
Friday was generally a great day on Wall Street, as major benchmarks jumped following a favorable reading on the U.S. job market. The monthly employment report confirmed the healthy state of the domestic labor market, and those following economic indicators saw the news as a sign of sustained prosperity for at least the immediate future. Yet some companies weren't able to join in the market rally, with earnings weighing on their prospects for growth. Zoom Video Communications (NASDAQ: ZM), PagerDuty (NYSE: PD), and Yext (NYSE: YEXT) were among the worst performers. Here's why they did so poorly.
Shares of Zoom Video Communications fell 10% after the videoconferencing specialist reported its third-quarter financial results. Fundamentally, Zoom looked extremely sound, with revenue soaring 85% from year-earlier levels and the number of customers contributing at least $100,000 in annual revenue nearly doubling year over year. Adjusted net income also climbed considerably from the year-ago quarter. Yet even though Zoom also boosted its guidance for the full year, investors seemed to want to see even faster growth in order to justify the high valuation that has given the tech stock a market capitalization of roughly $17 billion.
Image source: Zoom Video Communications.
Source Fool.com
