What a way for the stock market to kick off september, both the s, p, 500 and nasdaq 100 closed at all-time highs, but what's more exciting than that is the video conferencing company, zoom zoom just reported their second quarter results and they were beyond incredible. They blew the analyst estimates out of the water and announced some of the best growth metrics i've ever encountered. It was pretty obvious that investors and traders love what zoom's been doing, because its stock ended the day up over 40, which means in one single trading day. The company increased in value by more than 30 billion dollars.

What's going on moon gang, i hope your stock portfolio has been on an absolute rocket ship. Lately my name is matt and in this video i will be discussing zoom's latest earnings report. Then, before sharing my personal opinion on, if this is a good buying opportunity, i will be taking a more in-depth look at the company from both a fundamental and technical perspective. Make sure you stick around until the end, because i will be calling out.

Some sympathy plays that you may not have thought of if you want to join an awesome community of like-minded people join the party by hitting the subscribe button and don't forget to turn on your notifications. So you don't miss any updates from the moon game alrighty then. Let's dive into it, zoom trades under the ticker symbol zm, and they reported their second quarter earnings after the market closed on august 31st, as you can see from this 30 minute, chart the market absolutely loved. What zoom announced before the market opened back up.

It was already up 35 and then, by the time the next trading day ended. It was up just below 41. This abrupt jump from 325 to 450 is definitely impressive, but wait until you see the daily chart. Zoom has benefited a lot off of our new stay-at-home economy from the start of 2020.

Up until just before the latest earnings report, the stock was up a noteworthy 379 percent. Then after their jaw-dropping earnings was released, the stock climbed all the way up to 573 percent. This means in eight short months, the company's total value exploded from 25 billion to 130 billion. When you think about it, though, from a high level view, this rally makes sense, because it seems as if every business and school from elementary all the way up to college is now using zoom, which is essentially what we saw in their earnings report.

As soon as zoom announced their earnings extremely bullish headlines quickly followed zoom made as much money in three months as it did in all of 2019 zoom's customer base source 458 as it beats earnings estimates zoom shares soar after revenue more than quadruples from last year. Obviously these types of headlines increase bullish sentiment, but let's take a look at the actual numbers. Zoom stock absolutely ran to the moon after they reported earnings that were better than analysts had expected and raised its full year. Guidance significantly.

Zoom is now worth 129 billion dollars, which means it's more valuable than both ibm and amd. Analysts were expecting an earnings of 45 cents per share, but the company managed to double that and hit 92 cents per share and in terms of revenue, analysts were expecting 500 million, but zoom hit 663 million whenever a company beats estimates by this significant of a margin, You can typically expect a nice boost in the stock price. The good news didn't stop. There.

Zoom's revenue grew by 355, which is even more impressive when you realize in the previous quarter, it already grew by 169 percent. I don't want to bore you with the specifics of every number in this article, but just so you know, the bottom line is that zoom is growing by pretty much every metric. I think zoom's growth and potential for additional growth is well captured in this quote from the ceo. Our ability to keep people around the world connected, coupled with our strong execution, led to revenue growth of 355 year-over-year in q2 and enabled us to increase our revenue outlook to approximately 2.37 billion to 2.39 billion.

This is incredible because analysts had a revenue estimate of 1.8 billion, which means that these numbers mark a significant increase in guidance. This was music to investors years and it even prompted a couple analysts to improve their outlook on zoom stock. Btig was quoted, saying we have greater conviction in zoom's ability to capitalize on both the near and long-term opportunity ahead, driving our upgrade on zoom shares from neutral to buy, with a 500 price target. Under a note, titled unprecedented times continue to lead to unprecedented results.

Bank of america reiterated a buy rating on zoom and raise their price target from 260 to 475.. When you look at wall street as a whole, analysts are bullish on zoom, with one being very bearish and five being very bullish. The average analyst rating is 3.59 out of 27 analyst ratings 11 are either very bullish or bullish. I think it's safe to say that this price target is a little bit out of date, because every recent one that i found was above 400.00 when you take a look at zoom's income statement.

It's no surprise that analysts are bullish on the stock from 2017 until 2020, the total revenues has grown from 61 million to 623 million and over the past 12 months, the revenues has exploded to 1.3 billion in terms of gross profit. Zoom was at 48 million in 2017, and now it's just below 1 billion. This type of incredible growth can also be seen in zoom's net income in 2017. Zoom made no money, then, if you fast forward until now, the company's net income is 230 million.

These fundamentals paint a pretty clear picture that zoom is on an impressive growth cycle. Let's turn our attention to their technicals so to be fully transparent. I do not currently own any shares of zoom, but if i did, i would be taking some of my profits off the table. It's never a bad idea to lock in some of your profits after an abrupt 40 jump.

I mean come on. How much more do you want it to go up? But if you're like me and this rocket ship left without you, you should be patient and wait to invest at levels of support. Unfortunately, you're gon na have to show a lot of discipline, because the first support would come at the bottom of this gap at 325. If something insane happens and the bears push the stock below this level, the next support would come at 281.

This served as resistance in mid-july and support in late august and of course, you could always pay attention to the region between 237 and 230, but there is a decent chance that the stock never returns to this level from a technical perspective, i'm personally waiting for the Chart to develop in this region, so i can find a more reasonable support because, as things currently stand, the first support would mark a decline of 29. If you're already invested in zoom a huge congrats to you and if you're not, i would recommend being patient and waiting for a more reasonable opportunity. If you are antsy to get invested, i have three sympathy plays that could potentially benefit off of zoom's recent run. The first is pagerduty, they are a cloud computing company and zoom is suspected to be their largest client.

The next is docusign, which is a remote tool that allows for e-signatures and is used by many businesses. My third and final suggestion is slack, which is a messaging application that has become wildly popular since the start of this year. If you made it this far in the video you're the absolute best. I truly appreciate your support.

If you have any questions, suggestions or recommendations, let me know in a comment below. I would also love to know your opinion on zoom. I hope you were able to learn something or find enjoyment in this video. If you did.

Let me know by hitting the like button and if you want to join the moon gang subscribe to the channel and don't forget to turn on your notifications, thanks for watching and until next time best of luck in the markets. You.