Why Zoom Video Communications Stock Went Down on Tuesday

Shares of Zoom Video Communications (NASDAQ: ZM) went down early Tuesday after the company released one of the most impressive quarterly reports you'll ever see. Even with a strong outing and raised guidance, it wasn't enough to keep this market darling from going backward today. Investors are likely worried about the stock's valuation, and traders are looking to book profits. As of 10:30 a.m. EST on Tuesday, Zoom stock was down 13%.

Zoom's fiscal calendar doesn't line up with traditional calendars; it just reported results for the fiscal third quarter of 2021, covering the beginning of August through the end of October. For this time period, the company's revenue was up a mind-numbing 367% year over year to $777 million. Growth at this scale crushed expectations and helped it book net income of $198 million, up from just $2 million in the same quarter last year.

Image source: Getty Images.

Source Fool.com