Shares of Zoom Video Communications (NASDAQ: ZM) jumped sharply on Friday. The stock was up 5.1% as of 2:45 p.m. EDT.
Shares of the live video collaboration software provider were likely up because of a bullish note from an analyst, as well as an upbeat day in the market for many tech stocks.
RBC Capital analyst Rishi Jaluria named Zoom Video his top stock pick on Friday, giving shares a 12-month price target of $450.
The analyst believes that the company will remain integral to businesses in a post-pandemic world, thanks to differentiated technology. Jaluria is also optimistic about the company because of its strong financials.
Bullishness for tech stocks (particularly growth tech stocks like Zoom) on Friday may have helped give the stock a boost as well.
Zoom crushed analyst estimates when it recently reported results for its fiscal first quarter, a three-month period that ended on April 30. Revenue during the quarter skyrocketed 191% year over year to $956 million. Net income for the period was $227 million.
Based on the company’s outlook for full fiscal year revenue to be nearly $4 billion, Zoom management is undoubtedly confident about the company’s prospects as the economy reopens.
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