Tuesday’s Headlines: Why Is Zoom Up 25%?

Tuesday’s Headlines: Why Is Zoom Up 25%?

Here were the biggest movers in the MyWallSt shortlist yesterday:

Moving Up ⬆️

Tesla Motors (TSLA) +12.6%

Zoom Communications (ZM) +8.6%

Yext (YEXT) +5.8%

Evolent Health (EVH) +5.0%

Pinterest (PINS) +4.1%

Moving Down ⬇️

Trupanion (TRUP) -4.9%

Tripadvisor (TRIP) -4.8%

Planet Fitness (PLNT) -4.5%

Wynn Resorts (WYNN) -4.5%

TrueCar (TRUE) -4.4%

1. It may have privacy issues, and it may have failed when we needed it most last week, but my goodness does Zoom (ZM) know how to make money in a pandemic. The teleconferencing software leader reported 355% revenue growth year-on-year (YoY) to hit $663.5 million in Q2, with earnings per share (EPS) of $0.92 far surpassing estimates of $0.45. Its number of large customers also increased, with 988 customers paying over $100,000 in trailing 12 months revenue, which has helped Zoom’s stock rise 369% year-to-date (YTD). Zoom shares rose as much as 25% pre-market following its report. Get the official earnings release here.

2. When I reported on Apple (AAPL) and Tesla’s (TSLA) stock split yesterday, I thought that would be the end of it; but no, that’s not how 2020 works. Despite stock splits having no effect on a company’s market valuation, investors got excited by the new, cheaper share prices, sending Tesla and Apple shares up 12.6% and 3.4% respectively. Apple traded 223.4 million shares yesterday, roughly 25% more than its 30-day volume average of 178.588 million, while Tesla shares exchanged hands 115.6 million times, well above its 30-day volume average of 73.369 million. Read the full story here.

3. Taking the news to new heights now, Amazon (AMZN) on Monday received approval from the Federal Aviation Administration to operate its fleet of Prime Air delivery drones. The approval will give Amazon broad privileges to “safely and efficiently deliver packages to customers,” according to the FAA, with the e-commerce giant now allowed to carry property on drones “beyond the visual line of sight” of the operator. This ruling opens up an entirely new system of delivery for Amazon, with the fully electric drones now able to deliver up to 5 pounds of goods to a customer's back yard within 30 minutes of ordering. Get the complete report here.