Zoom (NASDAQ: ZM) shareholders saw a big spike in early trading on Thursday as the stock gained over 6% by 10 a.m., EST. Thursday's early rally came as investors continue to disagree about the video communications specialist's growth potential. Zoom's early price jump appeared to be a continuation from yesterday's rally.
Zoom (NASDAQ: ZM) recently posted a sixth consecutive quarter of sales over $1 billion, but Wall Street wasn't impressed. Never mind that the video communications giant earned just $623 million in annual sales in the year before the pandemic. Zoom's stock has been battered in 2022 even though the company is on pace to reach almost $4.5 billion of revenue this fiscal year.
The videoconferencing specialist leans heavily on stock-based compensation, which could drag on shareholders' returns.