Another new record closing high for the Nasdaq this Monday, with Tech and Consumer Discretionary stocks having a solid trading day. The tech-heavy index concludes its month of August with 0.68% gains on the day, bringing the full-month total to nearly 10%. The Dow slipped 226 points on the day (-0.78%), closing lower for the first time in the past 4 sessions.

The S&P 500 had been modestly positive most of the day, but skidded slightly into the red in the minutes before the closing bell, breaking a 7-day winning streak. The index was up 7.4% for the month, but came in down 0.23% on the day. Energy, Materials and Industrials led the index on the downside. Financials also underperformed the broader market on the day.

After the closing bell Monday, Zacks Rank #2 (Buy)-rated Zoom Video ZM zoomed past expectations in its fiscal Q2 earnings report on both top and bottom lines: 92 cents per share more than doubled the 45 cents in the Zacks consensus, while the cloud video company’s revenues of $664 million simply obliterated the $498 million analysts were looking for. Customers spending more than $100K in the quarter grew more than 100% year over year.

This amounts to 1045% earnings growth from the year-ago quarter, with the top line posting 355% growth. Clearly, Zoom came along at the right time to service work and school offices during the coronavirus pandemic (which continues), but even the lofty expectations set by analysts covering the company were blown out of the water. Guidance furthers the exceptional strength the company has been exhibiting, with 73-74 cents expected next quarter on between $685-690 million in sales leaves the respective estimates of 36 cents per share and $489 million in the dust.

Obviously, we expect a strong trend of upward revisions for Zoom, including for the full fiscal year. The company was already considered an “earnings all-star;” let’s consider today’s report a grand slam. Shares are up 9% in late trading, after a regular Monday session +8.6%. Shares are up 74% from this time a year ago.

(NOTE: We are reissuing this article to correct an inaccuracy. The original article, released earlier today, should not be relied upon.)

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