After the Fed released minutes of its last meeting, the bond market signaled it fears the Fed will not be aggressive enough with its rate cutting.Market Insiderread more
The Fed minutes also note that "a couple" members wanted a 50 basis point cut, based primarily on the weak inflation readings.The Fedread more
The inversion is seen by many veteran traders as an important recession omen, though the timing on the eventual downturn is less predictable.Bondsread more
Here's what Nordstrom reported for its fiscal second-quarter earnings.Retailread more
The sexy image that once boosted Victoria's Secret has been haunting L Brands more recently, as women are steering clear of the brand's hot pink, lacy and bejeweled lingerie.Retailread more
See which stocks are posting big moves after the bell.Market Insiderread more
"I'd love to say that the optimistic universe is most likely to prevail, but the talking heads talk endlessly about how a recession is inevitable," CNBC's Jim Cramer says.Mad Money with Jim Cramerread more
Read the fine print in your Apple Card contract — one clause means you give up your right to be heard in court.Technologyread more
Federal Reserve members worried over future growth are highly concerned about the U.S.-China tariff battleThe Fedread more
President Donald Trump signed a memorandum on Wednesday to automatically cancel the student loan debt of disabled veterans. More than 25,000 service members will have their...Personal Financeread more
President Trump and Apple CEO Tim Cook have had a rocky relationship in recent years, but Trump is now complimenting the executive publicly.Technologyread more
Zoom stock soared 18.4% Friday after beating revenue estimates in its first quarterly earnings report since its IPO and guiding well above analyst expectations for its full fiscal year. The rally added $3.7 billion to its market cap, which now sits at $24.1 billion.
Zoom reported revenue of $122 million for its first quarter of 2020, while analysts surveyed by Refinitiv were expecting $111.7 million. It said it expects earnings per share of 2 cents to 3 cents for the full fiscal year, excluding items, with revenue between $535 million and $540 million. Analysts had been expecting a loss of 3 cents per share, excluding items, and revenue of $520.3 million, according to Refinitiv.
Zoom reported 3 cents per share in earnings for the first quarter, excluding items. CNBC does not compare earnings against estimates for the first quarter report after an IPO.
"Crank those models up," Stifel analysts wrote in a note following the report, saying Zoom's high guidance "reflects strong ongoing momentum for the business, while continuing to take a very conservative approach around the recent launch of Zoom Phone by not including any material impact for the year in the outlook." The firm has a hold rating on the stock, reflecting "valuation concerns," but raised its price target to $80 per share to reflect higher estimates.
KeyBanc Capital Markets maintained a sector weight rating on the stock, saying it believes shares are fully valued. The firm raised its revenue estimates for the full fiscal year and placed a price target of $79.43 on the stock.
"Bulls will point to both record customer adds as well as strong [Average Revenue Per User] ARPU expansion (6% y/y to $8.93K) to show that Zoom is becoming increasingly relevant to both new and existing customers," KeyBanc analysts wrote in a note following the report. "Bears will point to the slowing existing customer expansion (36% vs. 56% in FY19) and argue the installed base spend is reaching saturation if Zoom Phone doesn't ramp."
Analysts still seem dazzled by Zoom's metrics. The company stood out from the rest of its tech IPO class in achieving profitability before going public in April. That helped the stock soar 72% on its first day of trading.
JMP analysts raved in their post-earnings analysis that Zoom has "some of the best financial metrics we have seen in the software world."
-CNBC's Jordan Novet contributed to this report.