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Tag: Pandemic

  • Demand For Zoom Inc (ZM) Shares Overdid Company Expectations, Resulting In Billion Sale

    Demand For Zoom Inc (ZM) Shares Overdid Company Expectations, Resulting In $2 Billion Sale

    One of the world’s top videoconferencing platforms, Zoom Video Communications (ZM), has raised $2 billion in a secondary share issue. The Wall Street Journal reported that Zoom CFO Kelly Steckelberg said that Zoom initially expected to receive $1.5-1.75 billion but received more thanks to investors’ high demand.

    According to a Zoom Inc (ZM) press release, the developer sold approximately 6 million shares of its Class A common stock for $340 per share. Steckelberg said the company’s cash on hand has almost doubled thanks to the addition of this issue.

    A financial director quoted in the WSJ said Zoom Inc (ZM) would use the raised capital to expand sales and marketing, in addition to expanding data centers. An expansion of its research facility in Singapore and India was announced last year by the company.

    Steckelberg admitted that some of the funds would be spent on mergers and acquisitions. More details on Zoom’s financial plans will reveal in the company’s upcoming income statement, she added.

    In the last quarter, Zoom posted good financial results. The first quarter of 2020 amounted to $777.2 million, a rise of $600 million compared to the same period last year. Operating profit reached $192.2 million. The company experienced a loss of $1.7 million a year earlier. In October, Zoom had about $70 million in debt, according to S&P Global Inc.

    As a result of the pandemic and the increasing trend towards digitalization in society, Zoom Inc (ZM), a technology company has begun to benefit from the pandemic, as many individuals have found themselves working from home and using Zoom’s software to connect with colleagues, family, and friends.

  • Is It Right Time To Buy Goldman Sachs (NYSE: GS) Stock?

    Is It Right Time To Buy Goldman Sachs (NYSE: GS) Stock?

    The Goldman Sachs Group, Inc. (NYSE: GS) shares traded up 4.83% after UBS analyst upgraded the Goldman Sachs stock to ‘buy’ from neutral and lifted the price target to $245 from $220. Goldman Sachs is considered to be the best performing bank during the year of unprecedented challenges. Being a bank investor in 2020 has been a challenge but there is a period of relief on the way. Analysts are positive about the current growth of Goldman Sachs.

    Goldman Sachs has earlier decided to make its business more efficient and profitable. The bank got benefit from the increased trading activity this year as markets have been especially volatile. But the bank management has doubt that there might be the chance that the gains in trading are not permanent. But because of its trading and underwriting activities which are its main strengths according to UBS analyst Brennan Hawken has filled the gap as it is continuously trying to become more efficient by growing newer businesses and cutting costs materialize.

    Brennan Hawken further added that Goldman Sachs is currently generating the strong results which have continued in the third quarter and the potential volatility in the result of the upcoming election will make its fourth quarter more strong. Furthermore, he said: “In 2021 we anticipate the efficiency efforts from strategic plans of Goldman Sachs to begin to impact the P&L, driving down the efficiency ratio, leading to the upside to earnings forecasts.”

    If we look at the Thursday’s trading session of Goldman Sachs, its share price went from a low point around $130.85 to briefly over $250.46 in the past 52 weeks, though shares have since pulled back to $195.11. It has moved up 49.11% from its 52-weeks low and moved down -22.10% from its 52-weeks high. The Goldman Sachs, Inc. market cap has remained high, hitting $67.12 at the time of writing.

    Goldman Sachs CEO David Solomon has revealed that he spent most of his time in the office at the peak of the coronavirus pandemic. He revealed that he didn’t make a random decision after waking up that today he is going to spend the whole day in the office. He said: “It is the right message that the captain was kind of hands-on the wheel of the ship.”

    GS has announced that it has decided to extend a 400 million reais ($72.61 million) credit line to finance e-commerce firm MercadoLibre in giving loans to small and mid-sized companies in Brazil. The bank revealed that the credit line is one of the biggest it has offered to small startups in Brazil. Earlier year, GS extended a $125 million loan to MercadoLibre in Mexico.

    GS is scheduled to share third-quarter earnings next month, which will certainly give investors new information to digest. But Hawken is looking forward to seeing the bank’s fourth-quarter earnings call early next year. Analysts believe that this is the right time to buy the stock of Goldman Sachs.

  • Should You Be Holding FedEx (NYSE: FDX) Right Now?

    Should You Be Holding FedEx (NYSE: FDX) Right Now?

    FedEx Corporation (NYSE: FDX), a multinational delivery services company has traded up 0.14% after reporting the strong first-quarter results. The delivery services company has reported £14.97 billion of revenue and gains £3.78 per share in the first quarter. The company has also announced its plan to help in the distribution of coronavirus vaccine treatment to hospitals and governments around the globe.

    FedEx Corporation has revealed that it is planning to introduce FedEx SenseAware ID, a security-enhanced tracking sensor which the company is planning to use in the distribution of coronavirus vaccine. The delivery services company aimed to connect the world during the period of need. Its main priority is the safety of customers and it has worked continuously to keep the world’s industrial, healthcare, and at-home supply chains flowing amid the pandemic.

    If we look at its Q1 result, FedEx Corporation has reported the net income of  $1.25 billion and $4.72 a share as compared to the $2.84 a share in the earlier year quarter. Its adjusted income climbed to $1.28 billion or $4.87 a share. Looking at its revenue, it has recorded the Q1 revenue of $19.3 billion was 14% up from $17 billion a year earlier.  The company said that its earnings growth has emphasized the importance of its business initiatives and investment over the last several years.

    FedEx Corporation (NYSE: FDX) shares were trading up 0.14% at $236.67 at the time of writing on Wednesday. Its share price went from a low point around $88.69 to briefly over $241.00 in the past 52 weeks, though shares have since pulled back to $236.67. It has moved up 166.85% from its 52-weeks low and moved down -1.80% from its 52-weeks high. FedEx Corporation’s market cap has remained high, hitting $59.78 at the time of writing.

    FedEx CEO said that the “Operating results increased due to volume growth in FedEx International Priority and U.S. domestic residential package services, yield improvement at FedEx Ground and FedEx Freight, and one additional operating weekday.”

    2020 is the year of challenges for many companies but FedEx has seen positive growth in its earning because people preferred to stay at a home amid pandemic. This pandemic environment is advantageous for FedEx as customers were turning towards online shopping. But now customers are going out and do shopping as well by visiting the stores physically. But still, FedEx has an advantageous environment right now.

    The delivery service company has spent $565 million on fuel across the company during the quarter as compared to 35% less than a year earlier. FedEx did not give an earnings forecast for fiscal 2021 because of the prevailing pandemic which caused uncertainty in the market. But the company said it anticipates annual capital spending of $5.1 billion.