Zoom Video Stock Drops Despite Earnings Beat and Guidance Raise
Zoom Video Communications (NASDAQ: ZM) turned in strong third-quarter fiscal 2020 results after the market closed on Thursday.
Despite beating Wall Street's revenue and earnings expectations and increasing its full-year guidance on both the top and bottom lines, the videoconferencing specialist's stock dropped 8.9% in after-hours trading on Thursday. We can likely attribute the market's initial reaction to disappointment that revenue growth is slowing.
Since the company's initial public offering (IPO) in April, its shares have gained 93.5% through the regular trading session on Thursday, though that tally could shrink on Friday.
Source Fool.com
