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Zoom's Artificial Intelligence

Zoom's Artificial Intelligence

Photo by LinkedIn Sales Solutions / Unsplash

Today is Tuesday, August 22, 2023.

The Early Bird Index today is 54.92.

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Zoom's Artificial Intelligence

Zoom (Nasdaq: ZM) increased by 4.43% in after-hours trading on Tuesday after the technology company posted better-than-expected financial results.

Financials: Zoom reported earnings of $1.34 per share in the past quarter and revenue of $1.138 billion; both were better than expected.

Big Growth: Enterprise revenue grew 10.2% in the quarter to $659.5 million.

Outlook: The company expects revenue for the full year to be between $4.485 billion and $4.495 billion and earnings per share to be between $4.63 and $4.67; both were better than expected.

Quote: “Our mission of delivering limitless human connection remains core as we continue to innovate and expand our platform to help bring value and enhanced productivity to our customers with new AI features like Zoom IQ Meeting Summary and Team Chat Compose.” - Zoom CEO Eric S. Yuan.

Final Thoughts: While other tech stocks have jumped this year, Zoom is only up 1%. But between cost-cutting and growth in the enterprise business, Zoom is turning things around. Investors are also excited about Zoom’s AI capabilities.

Notables

Notable Earnings Today: Toll Brothers (NYSE: TOL), Macy's (NYSE: M), Lowe's (NYSE: LOW), Dick's Sporting Goods (NYSE: DKS), La-Z-Boy (NYSE: LZB), Medtronic (NYSE: MDT), Urban Outfitters (Nasdaq: URBN), Baidu (Nasdaq: BIDU), Canadian Solar (Nasdaq: CSIQ), BJ's Wholesale (NYSE: BJ), Coty (NYSE: COTY), MINISO Group Holding (NYSE: MNSO).

Notable IPOs Today: First Foundation Inc. (NYSEL FFWM).

Notable Equity Crowdfunding Campaigns Ending Today: Warrior Energy Drink (StartEngine), TeamUp (Republic), Sensory Health (MicroVentures).

Notable Economic Events Today: Existing Home Sales (10:00 a.m. ET), API Weekly Crude Oil Stock (4:30 p.m. ET).

Why Ethereum ETFs Could Arrive With Bitcoin ETFs

Photo by DrawKit Illustrations / Unsplash

The arrival of Bitcoin exchange-traded funds (ETFs) in the United States could happen at the same time as the arrival of an Ethereum ETF.

Definition: A spot Bitcoin ETF tracks the price of Bitcoin. Several funds have submitted spot Bitcoin ETF applications for approval in the U.S., but the Securities and Exchange Commission did not approve any yet.

Powering the Story: It turns out that the SEC could approve multiple Ethereum ETFs, which track the price of Ethereum, around the same time that a Bitcoin ETF gets approved, according to a report from the Wall Street Journal.

Final Thoughts: Investors are anxiously waiting for approval of a Bitcoin ETF because it would give average investors in the U.S. more access to Bitcoin.

Higher Bond Yields Are Coming For Stocks

We typically don’t focus on bonds at Early Bird, but some recent developments in the bond market are worth discussing because bonds are having a big impact on stocks in 2023.

Details: The US 30-year Treasury bond reached its highest price in over a decade last week. Bonds are ticking higher to nearly 5%, as some analysts recently pointed out.

Powering the Story: Higher bond yields are bad for stocks. If the price of bonds, particularly those backed by the U.S. federal government, goes up, investors flock to them and leave stocks behind. U.S. bonds are considered to be safer than stocks.

Final Thoughts: What should investors do? Well, balancing a portfolio with some U.S. bonds can be a good idea. But more importantly, investors should keep a close eye on bond yields. If those yields decline, stocks might have a chance to rise.