Zoom Video Stock Is Trading Lower: What's Going On?

Zoom Video Communications Inc ZM shares are trading lower Monday ahead of the company's quarterly results, which are due after the close.

Zoom Video is set to announce its second-quarter financial results after the bell. The company is expected to report earnings of 93 cents per share on quarterly revenue of $1.12 billion, according to Benzinga Pro.

Several growth names are also trading lower amid overall market weakness in anticipation of the Federal Reserve's Jackson Hole symposium on Friday. 

Jackson Hole is an annual economic summit featuring central bankers, academics and economists from around the world. During the event, Fed chair Jay Powell is expected to give a speech on inflation.

The Fed raised its target fed funds rate by 0.75% in June and again in July. The two consecutive 0.75% rate hikes mark the most aggressive rate increases since 1994. Still, the central bank is fighting the highest inflation numbers in more than 40 years.

The bond market is pricing in a 56.5% chance of another 0.75% hike next month and a 43.5% chance of a 0.5% hike. Higher rates decrease the present value of future cash flows, which can negatively impact the valuations of growth stocks. 

Related Link: Jackson Hole Symposium Preview: Why Powell's Friday Speech Is Critical For Investors

ZM Price Action: Zoom Video has a 52-week high of $184.91 and a 52-week low of $79.03.

The stock was down 2.02% at $97.50 at time of publication.

Photo: courtesy of Zoom.