Eric Yuan, founder and chief executive officer of Zoom Video Communications Inc., speaks during the BoxWorks 2019 Conference at the Moscone Center in San Francisco, California, U.S., on Thursday, Oct. 3, 2019.
Shares of Zoom dropped more than 8% after trading opened Wednesday, as investors likely took their profits from Tuesday’s stock surge.
The videoconferencing software company’s stock soared 41% on Tuesday after it reported fiscal second-quarter earnings that were better than analysts had expected and raised its full-year guidance. The company reported that its revenue more than quadrupled during the quarter.
The company, which went public in April 2019, is still has a market cap of about $118 billion. It was worth $25 billion a year ago.
Zoom has widely benefited from the Covid-19 pandemic, as employers and educators turn to the software to replace in-person meetings and lessons. Zoom averaged 148.4 million monthly active users in the quarter, up 4,700% year over year, RBC analysts led by Alex Zukin wrote in a note distributed to clients on Aug. 17, citing data from app analytics start-up SensorTower.
Zoom now ranks among the most valuable U.S. tech companies, with a market cap higher than IBM and VMware.
— CNBC’s Jordan Novet contributed to this report
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