What's Next for Zoom Stock?

Plus: Mortgage Interest Rates Still Falling You are receiving this limited-time email resource as a subscriber to Kiplinger's free e-newsletters. We will continue to publish this daily throughout the height of the coronavirus outbreak. To unsubscribe at any time, simply click the link in the footer below. JUNE 3, 2020 [View in browser]( [Corona]( WHAT YOU NEED TO KNOW ABOUT THE CORONAVIRUS OUTBREAK The Zoom hype was for real. Zoom Video ([ZM]( the video conferencing company that we highlighted as a prime "[social distancing stock]( back in March, justified its white-hot 206% run in 2020 with a stellar Q1 earnings report, released after Tuesday's close. Revenues soared 169% to $328.2 million. Customers with 10-plus employees surged 354% to 265,400. Adjusted earnings rocketed 567% higher to 20 cents per share, which torched analyst expectations of 9 cents. Needham analyst Richard Valera told CNBC, "Never have I seen something of that magnitude in my 20 years of covering technology." SEE ALSO: [13 Tax Breaks for Homeowners and Home Buyers]( So, what's next? Zoom already faces the difficulty of keeping up such robust user growth as states lift stay-at-home restrictions. It also faces heavy competition from the likes of Microsoft ([MSFT]( Cisco ([CSCO]( and Alphabet's ([GOOGL]( Google, not to mention Verizon ([VZ]( which recently acquired enterprise video conferencing company Blue Jeans. ZM shares have flown past many analysts' price targets, too, raising the question as to whether the stock might be due for a cooldown. Mortgage interest rates continue their recent decline as lenders' backlog of refinancing applications gets cleared up. Normally, mortgage rates would have fallen to 3% or so when the 10-year Treasury bond rate dropped below 1% in early March. But the decline unleashed a flood of refinance applications that actually drove rates up for a short time. Now that much of this flood has receded, rates are beginning to come down to their typical relationship with the 10-year Treasury rate. Home prices appear to be rising in many places, not falling, despite a big drop in home sales because of the virus. The culprit appears to be very low inventories of homes for sale as new listings plunged along with home sales. New listings appear to have improved in May, but inventories remain tight, especially in the hotter markets of the South and West. Low mortgage rates are also likely supporting housing prices, since buyers typically look at what their total monthly payment will be. Some forecasters are expecting home prices to weaken later in the year because lingering high unemployment and continued economic uncertainty may hurt demand. But for the moment, it appears that bargains are still hard to come by. Free download, [The Kiplinger Letter's Forecast](. No information required from you. SPONSORED CONTENT FROM BARCLAYS [Get your savings goals back on track]( [Get your savings goals back on track]( No minimum deposit to open. [READ MORE]( RELATED LINKS [Best Video Apps for Staying in Touch]( [14 Best Tech Stocks That Aren't on Your Radar]( [7 High-Dividend Stocks With Durable Distributions]( [26 Things Home Buyers Will Hate About Your House]( [You Can Still Buy and Sell a Home During the Coronavirus Outbreak]( [Kiplinger] [Facebook]( [Twitter]( [LinkedIn]( [Google+]( [Tumbler]( Send this to a friend. [Click here.]( All content ©2020 The Kiplinger Washington Editors 1100 13th Street, NW, Suite 1000 Washington, D.C. 20005 Thank you for subscribing to Kiplinger's A Step Ahead, a free resource to help readers navigate special circumstances such as the coronavirus outbreak. If you ever wish to stop receiving this daily service, please [click here to unsubscribe.](