Buy Or Sell ZM Stock Ahead Of Earnings?
CANADA - 2025/01/30: In this photo illustration, the Zoom Communications logo is seen displayed on a ... More smartphone screen. (Photo Illustration by Thomas Fuller/SOPA Images/LightRocket via Getty Images)
Zoom Communications (NASDAQ:ZM) is set to announce its earnings on Wednesday, May 21, 2025. Analysis from the past five years shows that Zoom's stock has recorded a negative one-day return after its earnings announcements in 68% of cases. These negative returns have a median of -8.1% and a maximum of -16.7%.
For event-driven traders, these historical trends can provide valuable insights, although the actual market reaction will ultimately depend on how the reported results align with consensus estimates and market expectations. There are two main strategies to exploit this historical data:
At present, consensus estimates anticipate Zoom to announce earnings per share of $1.31 on revenues of $1.17 billion for the upcoming quarter. This is a comparison to the same quarter last year, where Zoom reported earnings per share of $1.35 on revenues of $1.14 billion.
From a fundamental perspective, Zoom currently holds a market capitalization of $26 billion. Over the past twelve months, the company generated $4.7 billion in revenue, realizing an operating profit of $813 million and a net income of $1.0 billion. Additionally, see Buy or Sell Zoom Stock
That being said, if you are looking for potential upside with lower volatility than individual stocks, the Trefis High Quality portfolio offers an alternative – having outperformed the S&P 500 and yielded returns exceeding 91% since its inception.
See earnings reaction history of all stocks
Here are some insights on one-day (1D) post-earnings returns:
Additional observations for the 5-Day (5D) and 21-Day (21D) returns post earnings are compiled in the table below.
ZM 1D, 5D, and 21D Post Earnings Return
A relatively less risky approach (though not effective if the correlation is low) is to understand the correlation between short-term and medium-term returns post earnings, identify a pair that exhibits the highest correlation, and execute the relevant trade. For instance, if 1D and 5D exhibit the highest correlation, a trader can position themselves 'long' for the subsequent 5 days if the 1D post-earnings return is positive. Here is some correlation data based on 5-year and 3-year (more recent) history. Note that the correlation 1D_5D refers to the relationship between 1D post-earnings returns and subsequent 5D returns.
ZM Correlation Between 1D, 5D and 21D Historical Returns
Occasionally, the performance of peers can influence post-earnings reactions of stocks. Indeed, the pricing may start before the earnings are revealed. Here are some historical insights regarding the past post-earnings performance of Zoom Communications stock, compared with the stock performance of peers that reported earnings just before Zoom Communications. For accurate comparisons, peer stock returns also represent post-earnings one-day (1D) returns.
ZM Correlation With Peer Earnings
Learn more about Trefis RV strategy that has outperformed its all-cap stocks benchmark (a combination of all three: the S&P 500, S&P mid-cap, and Russell 2000), to generate strong returns for investors. Furthermore, if you're looking for upside with a more stable experience than owning an individual stock such as Zoom Communications, consider the High Quality portfolio, which has surpassed the S&P and delivered >91% returns since its inception.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Car and Driver
an hour ago
- Car and Driver
2026 Toyota Sienna Hybrid Review, Pricing, and Specs
Overview With lounge-like seating for up to eight, an available center-console fridge, and a built-in vacuum on upper trims, the Toyota Sienna minivan aims to be almost like a mobile home. While homes don't typically receive fuel economy estimates, the EPA rates the Sienna as the efficiency leader in its class. Its fuel-sipping hybrid powertrain comes with either front- or all-wheel drive, and the engine noise while accelerating is really the only disturbance to an otherwise tranquil cabin experience. With its superior fuel economy and flawless execution of all the minivan fundamentals, the Sienna is among our favorite vans, beating out stiff competition like the Honda Odyssey and Kia Carnival and trailing only the quirky and electric Volkswagen What's New for 2026? After a light interior refresh brought an updated infotainment suite, an Advanced Rear Seat Reminder feature, and some upgraded wireless charging tech last year, the Sienna carries over into 2026 unchanged. Pricing and Which One to Buy The price of the 2026 Toyota Sienna is expected to start around $41,000 and go up to $58,000 depending on the trim and options. LE $41,000 (est) XLE $46,000 (est) XSE $49,000 (est) Limited $52,000 (est) Woodland Edition $52,000 (est) Platinum $58,000 (est) We'd go for the XSE model, which comes with sport seats, a 12.3-inch infotainment touchscreen, second-row captain's chairs, and Toyota's "one-motion-stow" third row. Other tweaks include 20-inch wheels, more aggressive front and rear bumpers, and tauter suspension. The XSE, like all Sienna trims, comes standard with front-wheel drive, but adding all-wheel drive costs less than $1000 and seems like a worthwhile upgrade to us. Engine, Transmission, and Performance The Sienna has been offered exclusively as a hybrid since its 2021 redesign. Its powertrain consists of a 2.5-liter four-cylinder engine and a pair of electric motors that make a combined 245 horsepower. All-wheel drive is available across the lineup and features a third electric motor that drives the rear wheels but doesn't increase total output. The Sienna delivers an uninspiring driving experience but, importantly, it aces ride comfort without going too far toward the soft end of the spectrum. 0–60-MPH Times An all-wheel-drive Sienna Limited we tested required 7.5 seconds to reach 60 mph. For context, that's quicker than the Pacifica Hybrid, the same as the Kia Carnival's time, and behind the hot rod of the segment, the Honda Odyssey. View Exterior Photos Toyota Fuel Economy and Real-World MPG The EPA hasn't released fuel economy information for the 2026 Sienna yet, but without any significant changes, the newest model should deliver similar fuel economy to last year's model. The front-drive 2025 Sienna stood as the segment's thriftiest people hauler, with EPA fuel-economy estimates of 36 mpg city and 36 mpg highway. Adding all-wheel drive reduced the city metric by 1 mpg. Over 40,000 miles, our all-wheel-drive Platinum long-term test vehicle averaged 29 mpg. In our 75-mile highway fuel-economy test, an all-wheel-drive Sienna returned an impressive 33 mpg. For more information about the Sienna's fuel economy, visit the EPA's website. Interior, Comfort, and Cargo Toyota packed tons of storage into the Sienna's interior, the centerpiece of which is a large center console that stretches from the dashboard to the start of the second row, with a sizable open storage cubby underneath. There are also 18 cupholders scattered about the cabin. Frequent haulers of cargo may be disappointed to learn that the Sienna's second-row seats are not removable like those in the Odyssey and the Pacifica Hybrid. As a consolation prize of sorts, the second-row captain's chairs can slide a total of 25 inches fore and aft, providing either maximum legroom for either of the rear rows or more cargo space behind the second row. The cargo area behind the third row measures 34 cubic feet compared to the Kia Carnival's 40 cubes. Limited and Platinum models feature reclining second-row seats with pop-up ottomans, and an onboard vacuum cleaner and fridge are available on the Limited and standard on the Platinum trim. View Interior Photos Toyota Infotainment and Connectivity The Sienna LE's infotainment touchscreen measures 8.0 inches, while all other models get a 12.3-inch display. Apple CarPlay, Android Auto, and Amazon Alexa connectivity features are all standard, as is an onboard Wi-Fi hotspot and SiriusXM satellite radio. A smattering of USB-C ports dot the van's cabin, and there's a USB-A port in the console for older devices. The base stereo is a 6-speaker setup, and XLE models get eight speakers. A 12-speaker JBL stereo system is optional on the XLE and XSE and standard on the Limited and Platinum. In-dash navigation is standard starting with the XSE trim; a rear-seat entertainment system with an 11.6-inch display is optional on all but the base LE model. A 7.0-inch instrument cluster display is nestled between analog gauges on LE and XLE models, while upper trims get a fully digital gauge cluster. A head-up display is available and is standard on Platinum. Safety and Driver-Assistance Features Ten airbags, blind-spot monitoring, rear-cross-traffic alert, and Toyota's Safety Sense 2.0 bundle of driver-assistance features are standard on the Sienna, while convenience items such as parking sensors and a 360-degree exterior camera system are optional. For more information about the Sienna's crash-test results, visit the National Highway Traffic Safety Administration (NHTSA) and Insurance Institute for Highway Safety (IIHS) websites. Key safety features include: Standard automated emergency braking with pedestrian detection Standard lane-departure warning with lane-keeping assist Standard adaptive cruise control Warranty and Maintenance Coverage The Kia Carnival offers longer powertrain and bumper-to-bumper warranty coverage than the Sienna. But Toyota adds some value to its fairly basic warranty package with a two-year complimentary maintenance plan. Limited warranty covers three years or 36,000 miles Powertrain warranty covers five years or 60,000 miles Hybrid-component warranty covers ten years or 150,000 miles Complimentary maintenance is covered for two years or 25,000 miles Specifications Specifications 2023 Toyota Sienna Hybrid Limited Vehicle Type: front-engine, all-wheel-drive, 7-passenger, 4-door van PRICE Base/As Tested: $51,730/$53,855 POWERTRAIN DOHC 16-valve Atkinson-cycle 2.5-liter inline-4, 189 hp, 176 lb-ft + 3 permanent-magnet synchronous AC motors, front: 180 hp, 199 lb-ft; rear: 54 hp, 89 lb-ft (combined output: 245 hp); 1.5-kWh (est.) nickel-metal hydride battery pack TRANSMISSIONS, F/R CVT/direct drive CHASSIS Suspension, F/R: struts/multilink Brakes, F/R: 12.9-in vented disc/12.5-in vented disc Tires: Goodyear Assurance Finesse 235/55R-19 101H M+S DIMENSIONS Wheelbase: 120.5 in Length: 203.7 in Width: 78.5 in Height: 69.7 in Passenger Volume, F/M/R: 58/58/47 ft3 Cargo Volume, Behind F/M/R: –/75/34 ft3 Curb Weight: 4811 lb C/D TEST RESULTS 60 mph: 7.5 sec 1/4-Mile: 15.8 sec @ 88 mph 100 mph: 22.1 sec Results above omit 1-ft rollout of 0.3 sec. Rolling Start, 5–60 mph: 8.5 sec Top Gear, 30–50 mph: 3.9 sec Top Gear, 50–70 mph: 5.8 sec Top Speed (gov ltd): 117 mph Braking, 70–0 mph: 190 ft Roadholding, 300-ft Skidpad: 0.78 g C/D FUEL ECONOMY Observed: 27 mpg 75-mph Highway Driving: 33 mpg 75-mph Highway Range: 590 mi EPA FUEL ECONOMY Combined/City/Highway: 35/35/36 mpg C/D TESTING EXPLAINED More Features and Specs
CNN
an hour ago
- CNN
Warner Bros. Discovery shareholders reject CEO David Zaslav's pay package
Warner Bros. Discovery shareholders voted on Tuesday to reject the pay packages for several of the company's executives, including CEO David Zaslav's compensation package of more than $50 million. Nearly 60% of the symbolic vote was against the 2024 executive payouts at Warner Bros. Discovery's annual meeting, according to a regulatory filing. The vote is non-binding. Last year, shareholders narrowly approved executive pay, with 53% voting in favor. Warner Bros. Discovery is the parent company of CNN. Zaslav, who has been CEO of Warner Bros. Discovery since 2022, when the company was created by the merger of WarnerMedia and Discovery, Inc., was paid a total of $51.9 million last year, including equity awards and other compensation. Warner Bros. Discovery's stock (WBD) declined 7% in 2024, while media competitor Netflix (NFLX) saw its stock gain more than 80% in 2024 and Disney's stock (DIS) rose 24%. Netflix's co-CEOs, Ted Sarandos and Greg Peters, were paid $61.9 million and $60.3 million last year, respectively, while Disney's Bob Iger was paid $41.1 million. The broader S&P 500 gained over 23% last year. Warner Bros. Discovery did not respond to a request for comment.
Forbes
an hour ago
- Forbes
The AI Era Enters Its Sovereign Phase
Generative AI adoption started in late 2022 with public adoption of models like ChatGPT and Llama. As it drives towards its next phase of value creation with reasoning, also referred to as agentic AI, it has recently crossed the boundary from a consumer-centric application into an enterprise application. Right on the heels of this adoption is also another phase of value creation – Sovereign AI. What Is Sovereign AI? Sovereign AI refers to artificial intelligence that is developed, maintained, and controlled within a specific nation's or organization's jurisdiction, ensuring independence from external influences. This artificial intelligence is designed to align with local regulations, ethical standards, and strategic priorities, allowing governments and enterprises to maintain autonomy over their AI-driven operations. The Opportunity To Reign Supreme (Or At Least Be At The Front Of The Pack) Nvidia CEO Jensen Huang recently stated that 'AI is now an essential form of national infrastructure – just like energy, telecommunications and the internet.' Indeed, many leading countries such as the United States, United Kingdom, China, France, Denmark and the United Arab Emirates have launched sovereign AI initiatives. Stargate is an example of such an initiative from the United States. Additionally, leading AI enablers like Nvidia and OpenAI, have initiatives targeted specifically at helping entities establish their own sovereign AI capabilities. Sovereign AI is particularly crucial in areas like national security, defense, and critical infrastructure, where reliance on foreign AI models could pose risks related to data privacy, cybersecurity, or geopolitical dependencies. By building and maintaining custom AI capabilities, nations and organizations can safeguard their technological sovereignty while fostering innovation tailored to their unique needs. Moving Forward With Sovereign AI While this is a gross oversimplification of how complicated this task is for national leaders to undertake, the following are some critical areas that must be addressed in embarking on the sovereign AI journey: To this end, AI enablers like Nvidia and leading countries such as France have started to organize events. For example, at the upcoming Viva Technology event in Paris this coming June, Jensen Huang and Nvidia have organized a dedicated GTC event where interested parties can learn more. As mentioned earlier, it is important to keep in mind that sovereign AI isn't necessarily limited to national entities. Any sufficiently capable entity, whether they be nations, companies, organizations or universities interested in securing their own AI systems and capabilities from data curation and model creation to specified and focused outcomes can take advantage of sovereign AI.
