ZoomInfo Surprises With Q3 Earnings Beat, But Stock Slides As Revenue Growth Lags
Quarterly Performance: ZoomInfo Technologies reported third-quarter revenue of $303.6 million, surpassing estimates, but experienced a 3% year-over-year decline. The company ended the quarter with 1,809 high-value customers and generated significant cash flow.
Future Outlook: For the fourth quarter, ZoomInfo anticipates revenue between $296 million and $299 million, slightly below estimates, while revising its full-year revenue outlook upwards to $1.201 billion – $1.204 billion. However, shares fell 15.1% in premarket trading following the report.
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Market Reaction to AI Stocks: Despite a recent decline in tech stocks, experts advise long-term AI investors to remain calm and not panic-sell, viewing the drop as routine profit-taking rather than a sign of trouble for the sector.
Impact on ETFs: ETFs heavily invested in major AI companies, such as NVIDIA and Microsoft, have seen significant declines, with some losing over 6% in just five days, highlighting the risks associated with concentrated investments in AI.
Opportunities in Software and Cybersecurity: Analysts suggest that the current pullback presents opportunities in overlooked sectors like software and cybersecurity, recommending ETFs that focus on these areas as potentially safer investments.
Earnings Strength and Future Outlook: Despite market fluctuations, earnings remain strong, with a high percentage of companies exceeding expectations; upcoming earnings from NVIDIA are seen as a critical factor that could influence market stability.

UK-US Talks and Tech Investment: British Prime Minister Keir Starmer will meet U.S. President Donald Trump for discussions on trade and security, coinciding with U.S. tech firms announcing £31 billion in investments in the UK, led by Microsoft and Alphabet.
ETF Market Response: Despite the significant investment pledges, AI- and cloud-focused ETFs have shown little movement, indicating that the market is looking beyond individual company announcements to broader trends in AI and tech infrastructure.
Long-term Potential: While immediate ETF responses are subdued, the investments in AI and cloud technology by major U.S. companies may validate a longer-term growth narrative for these funds, particularly as demand for AI-driven services increases.
Political and Economic Implications: Alphabet's investment is seen as a vote of confidence in the UK economy ahead of Trump's visit, but the short-term market reaction remains cautious, suggesting that substantial breakthroughs in AI and cloud technology are needed for significant ETF gains.
Earnings Report and Analyst Reactions: BILL Holdings, Inc. reported better-than-expected revenue and adjusted EPS for Q2, but analysts revised their price forecasts downward due to a decline in take rates and mixed guidance for future quarters, with some maintaining buy ratings while others downgraded their outlook.
Stock Performance Impact: Following the earnings announcement, BILL shares fell approximately 32.4%, attributed to concerns over AR/AP take rate declines and market confusion regarding future guidance, despite some analysts noting strong sales momentum and potential for recovery.

Buffer ETFs Performance: Buffer ETFs have performed well this week, outperforming the broader market amid a decline in technology stocks due to the DeepSeek panic.
Investor Interest in Leveraged ETFs: Despite a selloff on Monday, leveraged ETFs linked to Nvidia continue to attract investor interest.
Invesco Solar ETF Performance: The Invesco Solar ETF is up approximately 4% on Wednesday, with notable gains from Nextracker (up 23%) and Array Technologies (up 6.4%).
WisdomTree Cloud Computing Fund ETF Decline: The WisdomTree Cloud Computing Fund ETF is down about 2.2%, with Amplitude and Datadog experiencing declines of 6.5% and 5.5%, respectively.

Emergence of Quantum Computing: Quantum computing is poised to revolutionize industries by providing unprecedented computational power, particularly in fields like cryptography and drug discovery, with significant advancements already demonstrated by companies like Alphabet Inc.
Market Growth and Investment Opportunities: The U.S. quantum computing market is expected to grow from $138.2 million in 2022 to $1.2 billion by 2030, driven by increased investments and initiatives, presenting lucrative opportunities for investors in leading companies and quantum-focused ETFs.







