March 04, 2021

Andrew Campbell 

Due to the COVID-19 pandemic, Zoom grew earnings to almost $1 billion in 2020 with the stock rising more than 6%. The Chief Executive of Zoom, Eric Yuan, had a positive attitude towards the trend of working from home. He said that knowing the reality of working from anywhere enabled Zoom’s employees and customers to grow faster. 

The profit and the revenue of Zoom were blossoming. According to Zoom, the net income of the fourth quarter was $260.4 million and $2 billion in revenue in 2020. The analysts from FactSet predicted that 2021 adjusted earnings were$2.96 a share on sales up to $3.51 billion. 

On the other hand, the analyst from Hargreaves Lansdown, Susannah Streeter,  pointed out that the destiny of Zoom would rely on how it operated its features and competed against other companies such as Google or Microsoft. She indicated how Zoom contrasts with its competitors would affect the ratio of live video in the market. 

Photo:Webshot.