Hi Reader, here's what you need to know for September 2nd in 3:08 minutes.

☕️ Finimized over a long black at La Boîte à Café by Arctic in Lyon, France (24°C/75°F ⛅)

Today's big stories

Zoom lived up to its name with results that flew past analysts’ already lofty expectations
You might be better off investing in international stocks than American ones – Read Now
China’s manufacturing sector grew at its fastest pace in nearly a decade in August

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Star-Struck

What’s Going On Here?

Zoom’s second-quarter results blew past even the most optimistic analysts’ expectations, proving it’s not just a one-hit wonder after all.

What Does This Mean?

By almost any measure – revenue, profit, customers, cash flow, you name it – Zoom’s numbers were way better than the same time last year, back when talk of coronaviruses was confined to obscure epidemiology seminars. So good was its update for the three months through July, in fact, that the company’s shares climbed by 40% on Tuesday.

The only “but” was a drop in its gross profit margin from 81% to 71% as it won more small customers. Sales from businesses with fewer than 10 employees climbed to more than a third of the total, up from a fifth a year ago. That may sound like a good thing, but these commercial tiddlers are more likely to take out monthly contracts over annual ones – and they're more expensive to look after too.

Why Should I Care?

For markets: Mission control
The climb in Zoom’s share price gives the company more freedom to lock in extra cash, namely by selling new shares. That’s exactly what Tesla is doing: the electric carmaker announced plans on Tuesday to raise up to $5 billion after its valuation surged this year (tweet this). Then again, with Zoom’s quarterly net profit jumping 30-fold to $186 million – and with software much cheaper to scale than car production – the company mightn’t be in the same kind of rush.

The bigger picture: All that glitters...
Even though picking up Zoom shares after a blowout report might look tempting, the stock isn’t exactly cheap. The company’s share price has been climbing even faster than its revenue, which has more than quadrupled in the past year. That means Zoom is trading at more than 90 times its revenue – compared to an average of just over two times for the S&P 500 as a whole…

Recommended: How to spot the next Zoom.

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2/3 Premium

America Ain’t All That

What’s Going On Here?

The US stock market may look world-beating, but it turns out the average international stock is now outperforming the average American one.

Get the full story with Finimize Premium

Mech China Great Again

What’s Going On Here?

Results of a private survey out on Tuesday showed China’s manufacturing sector ran like a well-oiled machine in August, growing at its fastest pace in nearly a decade.

What Does This Mean?

Quick, find some wood to knock on: the data – which was better than economists had been forecasting – suggests the world’s second-biggest economy is bouncing back. And since improving exports played a big part in just how positive the data was, it’s raised hopes that China’s trading partners are starting to see a recovery too. There was some evidence for that in similar US data out on Tuesday: it showed activity in the country's manufacturing sector grew for the third straight month and at its fastest pace since January 2019.

Why Should I Care?

For markets: Uncertain terms.
The promising data out of both countries helped push US stocks to new record highs on Tuesday. But the same can’t be said for the US dollar, which just hit a two-year low versus other currencies. As for why, take your pick: it could be because of the economic uncertainty around the pandemic, the upcoming election, or the next round of economy-boosting aid measures that's stuck in limbo. Still, at least gold and oil might benefit: demand for the commodities is expected to climb as they become cheaper in other currencies.

The bigger picture: When they go low…
Because of the way exchange rates work, if the US dollar is going down, some other currency must be going up relative to it. And look no further than the euro, which just hit its highest level in over two years versus the dollar. One explanation could be Europe’s recent dip into deflation, meaning the price of goods is falling. And according to one popular economic model of determining exchange rates, a region with a lower inflation rate should see its currency go up in value versus a country with a higher inflation rate.

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💬 Quote of the day

“Often it is tenacity, not talent, that rules the day.”

– Julia Cameron (an American teacher, author, and artist)

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💪 Go big or go home

Fintech is big in Latin America. We’re talking real big. In fact, the number of fintech startups has doubled since 2016. So what’s with all the hullabaloo? We’ll let a leader from a fintech unicorn and an ex-Yale and McKinsey economist explain…

📱 The Future of Fintech in Latam – 10am Eastern Time, September 2nd
📚 Ladies Book Club – 6pm UK Time, September 2nd
🔥 Financial Freedom: WTF to ETF – 4pm UK time, September 7th

📚 What we're reading

Even a simple tool can change the world (MIT Technology Review)
May the force be with you (Nautilus)
Out of sight, out of mind? (Grist)

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Finimize - 🤑 Zoom's still smashing it

Today's big stories

Star-Struck

What’s Going On Here?

What Does This Mean?

Why Should I Care?

America Ain’t All That

Mech China Great Again

What’s Going On Here?

What Does This Mean?

Why Should I Care?

💪 Go big or go home

Older messages

🤭 Robinhood gets caught out

💪 Goldman goes big on stocks

🤑 Bring on the IPOs

🍏 Apple strikes again

♻️The Rise of Sustainable Investment

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