Your Tuesday Blip 12/1/20

Your Tuesday Blip 12/1/20

Stocks rebounded from yesterday’s pullback as the Dow posted a gain of 185 to 29,823. Trading volume was lower. Market gurus continue to ride the vaccine optimism trade. The Dow was up over 11% in November which was the best monthly performance since the rebound from the 1987 market crash.
Zoom Video reported earnings yesterday and the results were stunning. Revenue was up 367% and net income jumped from .09 cents per share to .99 cents per share in the latest quarter. Both top and bottom line results bested guru estimates and the company even increased its forward guidance. Zoom CEO Eric Yuan noted that customers with more than 10 employees grew 485%. While these earnings are great Mr. Market sent Zoom shares lower by 15% on profit taking. Investors recognized that while these earnings are stellar the current high growth rate is not seen as sustainable.
Salesforce announced it had signed a deal to acquire shares of San Francisco based software company Slack in a deal worth $27 billion smackers. The deal was expected and had been rumored for the past few days. This move follows a buyout of Seattle based Tableau Software by Salesforce a couple of years ago and gives them a bigger footprint in the enterprise software segment to serve customers wishing to gravitate towards a digital, work-from-anywhere in the world type of employee setup.