Shares of Zoom Video (NASDAQ:ZM) jumped on Monday, rising as much as 12.7%. As of 2:00 p.m. EDT, however, the stock was up about 9%.
The stock's rise follows the video communication company's impressive financial results last week. While shares already jumped following the earnings release, Monday's gain likely reflects more post-earnings bullishness for Zoom shares as growth tech stocks rise amid an upbeat day for the stock market.
Zoom stock has been on a tear since the company went public, rising 185% from the stock's initial public offering price of $36. A good portion of this gain came from the stock's 29% rise over the past two trading days, following Zoom's fiscal first-quarter results on June 6.
Giving investors reasons for optimism, Zoom's fiscal first-quarter revenue increased 103% year over year to $122 million as customers contributing over $100,000 in trailing-12-month revenue soared 120% year over year.
The video communications stock is also likely seeing a lift from gains in many tech stocks on Monday, evidenced by the tech-heavy Nasdaq composite's 1.5% rise as of 2:10 p.m. EDT. Fast-growing tech companies, in particular, saw their shares rise on Monday.
Even Zoom's outlook for its second fiscal quarter was better than analysts were expecting. The company guided for fiscal second-quarter revenue between $129 million and $130 million. On average, analysts had forecast fiscal second-quarter revenue of about $123 million.
Investors, of course, should mind the stock's valuation after such a sharp run-up. Shares now trade at a price-to-sales ratio of 68.