Zoom Stock Leaps 41% After Earnings While Tesla Wobbles

Markets have continued their positive sentiment after yesterday's rally with European shares opening higher and US futures pointing towards a positive open. Tech has really been the star of the show in recent weeks; the Nasdaq is set to make another record high with investors also anticipating a stimulus package from the US government. Gold (GLD) is off this morning as the dollar manages a small rebound against the Euro (FXE) and Sterling (FXB).

Zoom Video Technologies (ZM) stock soared higher still yesterday after revealing a staggering jump in revenues on Monday night after market close. The video conferencing firm has taken the business world by storm since the pandemic hit, with its revenues up 355% in the three months to end of July, smashing forecasts. The stock rocketed more than 40% higher on Tuesday, with its one-month return now at 71% and its year-to-date figure at 572%.

Elsewhere Tesla (TSLA), which has also enjoyed mammoth gains this year, announced plans to sell up to $5bn in stock to raise capital, taking advantage of its huge rally to fund its operations. Webush analyst Dan Ives told CNBC that CEO Elon Musk is raising enough capital for Tesla to “slowly get out of its debt situation, which throws the lingering bear thesis for Tesla out the window for now.” The move spooked investors nonetheless, coming just a day after its stock split, with shares down 4.7% yesterday as many took the opportunity to lock-in gains.

Netflix (NFLX), Walmart (WMT) lead bumper day for US stocks

All three major US stock indices delivered a solid Tuesday, with the Nasdaq Composite leading the way, closing the day 1.4% higher. One factor helping sentiment was manufacturing sector data from major economies globally, which showed demand rebounding. In the US, one measure of manufacturing activity from the Institute of Supply Management showed the sector’s expansion rate at a near two-year high.

Of the largest 100 Nasdaq Companies, Netflix delivered the best day, with JD.com (JD) and Apple (AAPL) also enjoying significant bumps. Streaming giant Netflix closed the day out 5.1% higher on the back of positive analyst sentiment. Royal Bank of Canada analyst Mark Mahaney increased his price target on the stock, noting that the level of profitability and sustainable growth it has achieved is not currently reflected in its share price.

1 2 3
View single page >> |

Disclaimer: eToro (UK) Ltd is authorized and regulated by the Financial Conduct Authority. eToro (Europe) Ltd is authorized and regulated by the Cyprus Securities and Exchange Commission. eToro AUS ...

more
How did you like this article? Let us know so we can better customize your reading experience. Users' ratings are only visible to themselves.

Comments

Leave a comment to automatically be entered into our contest to win a free Echo Show.