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Why Zendesk Gained 10.2% Last Month

By Jason Hawthorne - May 4, 2021 at 10:05AM

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Shares recovered from March but lost the momentum after earnings.

What happened?

After falling in March, Zendesk (ZEN 0.59%) rose 10.2% in April, according to S&P Global Market Intelligence. The provider of customer-service software rebounded, along with many other high-growth technology stocks.

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Image source: Getty Images.

So what?

March saw investors selling fast-growing companies due to the fears about rising interest rates. After recovering through most of April, shares of Zendesk retreated slightly at the end of the month following the company's earnings report. The update showed the year is progressing nicely.

What now?

In that announcement, the company said first-quarter revenue grew 25.5% year over year to $298 million. That number beat Wall Street estimates. Management also projected second-quarter revenue of $317 million to $322 million -- another beat.

Those results gave management the confidence to raise full-year guidance and several analysts the conviction to raise their price targets. The average price target now sits at $185, 27% above April's closing price of $146.

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Zendesk, Inc. Stock Quote
Zendesk, Inc.
$74.51 (0.59%) $0.44

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