One of the ultimate stay-at-home plays is out with a second-quarter beat.
Zoom Video earned $1.32 adjusted earnings per share versus the Refinitiv estimate of 99 cents. It earned $959 million in revenue compared with the $906 million estimate.
Two traders think the information tech company will stay relevant as the economy continues its massive reopening and people restart their work commutes. However, that doesn't mean it's time to buy.
"How are they going to monetize with such stiff competition? How are they going to monetize the future and what it looks like? What do the subscriptions look like?" Michael Bapis, managing director at Vios Advisors at Rockefeller Capital, said on CNBC's "Trading Nation" on Tuesday. "I would also wait to see how they set up earnings for the next one, two quarters. So, I don't think it's something you need to jump into right now, but definitely video workplace is here to stay."
TradingAnalysis.com's founder and CEO Todd Gordon is also optimistic on Zoom's future. But he's cautious near-term and wouldn't buy shares at these levels.
"Don't sell it at this point. I think a reentry is possible. It's a great company. They've got great customer service. They've got good margins," said Gordon.
Zoom shares are up more than 60% over the past 12 months. However, they're off 20% over the past three months.
Shares were down about 1% in after-hours trading Tuesday.
One major factor Gordon is watching in Zoom's quarterly report is small business attrition.
"I think small businesses who can otherwise meet in person will start to drop off," Gordon said.
