Today is Tuesday, November 23, 2021.
Zoom's "Hybrid World of Work"
Shares of Zoom Communications (Nasdaq: ZM) dropped 6.8% in after-hours trading on Monday following the release of quarterly earnings results from the video platform.
Financials: Zoom reported a $1.11 earnings per share and revenue of $1.05 billion, both were better than expectations. Future guidance was also slightly better as well.
Deeper Dive: While third-quarter revenue is up 35% year-over-year, it is below the growth that the company reported during the same period last year.
Bigger Picture: Zoom is preparing for a potential post-pandemic world. The company has rolled out new tools for hybrid workforces, but there is also a lot of competition from other tech businesses.
Quote: “We are well on our way to becoming an indispensable platform for enterprises, individuals, and developers to connect, collaborate, and build in the flexible hybrid world of work.” - Zoom founder and CEO, Eric S. Yuan.
Final Thoughts: Is there a future after the pandemic for Zoom?
Notable Earnings Today: Best Buy (NYSE: BBY), Dollar Tree (Nasdaq: DLTR), Dick’s Sporting Goods (NYSE: DKS), HP (NYSE: HPQ), Gap, Inc (NYSE: GPS), XPeng (NYSE: XPEV), Nordstrom (NYSE: JWN), Dell Technologies (NYSE: DELL), American Eagle Outfitters (NYSE: AEO), Medtronic (NYSE: MDT), Nutanix (Nasdaq: NTNX), VMware (NYSE: VMW), Burlington Stores (NYSE: BURL), Abercrombie & Fitch (NYSE: ANF), Autodesk (Nasdaq: ADSK), Cracker Barrel Old Country Store (Nasdaq: CBRL), J.M. Smucker (NYSE: SJM), Jack in the Box (Nasdaq: JACK), Qiwi (Nasdaq: QIWI), Pure Storage (NYSE: PSTG).
Notable IPOs Today: Vahanna Tech Edge Acquisition I Corp. Units (Nasdaq: VHNAU), Mana Capital Acquisition Corp. Unit (Nasdaq: MAAQU).
Notable Equity Crowdfunding Campaigns Ending Today: Aspireship (Wefunder), NoBaked Cookie Dough (StartEngine), Guardian Athletics (NetCapital), Arum Health (Wefunder), Greenberry’s Hard Coffee (StartEngine).
Notable Economic Events Today: Markit manufacturing PMI (9:45 a.m. ET), Markit services PMI (9:45 a.m. ET).
Oil Reserves Become Key for Energy Stocks
The United States is reportedly considering the release of millions of barrels from oil reserves in order to keep gas prices in check, according to Bloomberg on Monday.
Details: CNN also reported that President Joe Biden will announce a plan to release oil from the Strategic Petroleum Reserve (SPR) today if other nations also release reserves of oil.
Definition: The SPR is a stockpile of oil that the U.S. keeps reserved in case there are issues with supply or demand.
Stocks: Most energy stocks performed well Monday, including Phillips 66 (NYSE: PSX) and ConocoPhillips (NYSE: COP).
Final Thoughts: Keep an eye on oil stocks and energy exchange-traded funds (ETFs) if oil reserves get released from the SPR.
Equity Crowdfunding’s ATS Moment
Alternative trading systems (ATS) have infiltrated the world of equity crowdfunding, where retail investors can trade startup shares on a secondary market.
Definition: An ATS is an electronic trading platform that matches orders for buyers and sellers of securities. They are regulated by the U.S. Securities and Exchange Commission (SEC).
Into Equity Crowdfunding: In 2019, SeedInvest became the first equity crowdfunding platform to get ATS approval. StartEngine received an ATS license that same year and later launched its secondary trading platform.
Recent Developments: Rialto Markets opened its secondary trading platform this year, which is also available for 401(k) plans and IRAs.
Final Thoughts: There are some negatives with an ATS, such as platforms that trade against user order flow.
Trends to Watch
He’s Staying: President Biden will keep Jerome Powell as Fed chair, resisting political pressure for a shake-up. (New York Times)
Scapegoating: Asset managers blame SEC rules for decision to pull bitcoin ETFs (The Financial Times)
Paytming the Price: Paytm IPO Investors Lose $900 Million in Two Days as India’s Biggest Listing Flops (The Wall Street Journal)
We’re Hiring: Citi Plans to Hire 100 Staffers for Beefed-Up Crypto Division (CoinDesk)
Increasing: Why women are investing in the stock market at extraordinary rates (Fortune)
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