Zoom AI strategy pays off; shares jump 10% after earnings

Japanese consumer price index

In Japan, the latest set of inflation data keeps alive expectations that the Bank of Japan will end negative interest rates by April. The consumer price index rose by 2.2% in January year-on-year (YoY), slowing for a third straight month. Core consumer inflation, which excludes straight food, also slowed for a third month in a row in January.

The so-called core consumer price index (CPI), preferred reading by the Bank of Japan because it excludes fresh food and energy, slowed for a fifth straight month to 3.5%, after 3.7% the previous month. The slowdown was due in part to a big drop in energy costs, reflecting the base effect of last year's sharp rise. The key now is whether wage hikes beat inflation enough to give households purchasing power.

The British Retail Consortium

Prices in British shops rose at the slowest pace in nearly two years in February, according to the British Retail Consortium. Shop price inflation slowed to 2.5% in February from January's 2.9%, the smallest annual increase since March 2022. The drop was driven by weaker growth in food prices, which rose by 5% YoY, down from a 6.1% rise in January. BRC Chief Executive Helen Dickinson notes that "easing supply chain pressures have begun to feed through to food prices," but adds that "significant uncertainties remain as geopolitical tensions rise."

Gfk consumer confidence

In Germany, Gfk consumer confidence rose to -29 in March from -29.6 the previous month, in line with the forecast.

Federal reserve

Kansas City Fed President Jeffrey Schmid made his debut speech on policy and signalled that high inflation remains his main focus. "With inflation running above target, labour markets tight, and demand showing considerable momentum, my own view is that there is no need to pre-emptively adjust the stance of policy." His approach resonates with the message of other Fed policymakers in recent weeks who wish to keep the policy rate in its current 5.25%–5.5% range until they have greater confidence that inflation is headed towards the Fed's 2% goal.

Abrdn

Abrdn revenue fell 4% in 2023 to £1.398 billion. Adjusted operating profit decreased by 5% to £249 million. Full-year dividend per share, no change at 14.6p. Global medical tech company Smith & Nephew recorded a 6.4% rise in its revenue in Q4, taking FY revenue ahead of guidance.

Munich Re

The world's largest reinsurance company, Munich Re, posted better-than-anticipated earnings in Q4 and an upbeat outlook. Net profit fell 12% to €1 billion, beating expectations of €980 million. This takes Munich Re's net result to €4.6 billion in 2023. The group now anticipates the net result to rise to €5 billion in 2024.

Zoom Video Communications

Zoom Video Communications shares jumped 10% in extended trading after posting better-than-expected quarterly results. Adjusted earnings per share beat expectations, reaching $1.42 per share. Analysts anticipated $1.15 per share. Revenue stood at $1.15 billion, beating an estimate of $1.13 billion. Zoom's efforts to integrate AI into its products and diversify its portfolio have paid off. Zoom introduced its AI companion during its third quarter, allowing paid users to access new features including meeting summaries, email, and chat composing prompts. The Zoom AI companion has enabled over 510,000 accounts in the past five months.

eBay

Investors will be keeping an eye on eBay's Q4 quarterly results later on Tuesday. Wall Street expects the online marketplace giant to post earnings of $1.03 per share. Revenues should come in at $2.51 billion, which would be a 0.2% decline from the same quarter a year ago. Also today, investors await the quarterly earnings of American Electric Power, Virgin Galactic, and Urban Outfitters.

Bitcoin

Crypto stocks jumped on Monday as Bitcoin rose above $57,000 for the first time in two years. Enterprise software firm MicroStrategy announced it had bought about 3,000 more of the tokens for $155 million.