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Zoom stocks fell after rising 40% on Tuesday

Eric Yuan, founder and CEO of Zoom Video Communications Inc., speaks during the BoxWorks 2019 conference at the Moscone Center in San Francisco, California, the United States, on Thursday, October 3, 2019.


Zoom shares fell more than 8% after opening Wednesday as investors likely took their profits from Tuesday̵

7;s share surge.

The company’s video conferencing software stock rose 41% on Tuesday after the company reported better than analysts’ earnings in the second quarter and raised its guidance for the full year. The company announced that its sales more than quadrupled for the quarter.

The company, which went public in April 2019, still has a market capitalization of around $ 118 billion. A year ago it was worth $ 25 billion.

Zoom has benefited greatly from the Covid-19 pandemic as employers and educators are turning to the software to replace face-to-face meetings and lessons. Zoom averaged 148.4 million monthly active users for the quarter, up 4,700% year over year. This is what RBC analysts, led by Alex Zukin, wrote in a message to customers on August 17th, citing data from the app analytics startup SensorTower.

Zoom is now one of the most valuable US technology companies with a larger market capitalization than IBM and VMware.

– CNBC’s Jordan Novet contributed to this report

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